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Exhibit 10.25  

 
 

Dealer Manager And Consent Solicitation Agreement

March 22,
2005 

CREDIT
SUISSE FIRST BOSTON LLC

Eleven Madison Avenue

New York, NY 10010-3629 

Dear
Sirs: 

        1.    The Tender Offer.    Reddy Ice Group, Inc., a Delaware corporation ("Purchaser"), is making a tender
offer (hereinafter referred to, together with any amendments, supplements or extensions thereof, as the "Tender Offer") to purchase for cash any and all of the outstanding 87/8% senior
subordinated notes due 2011 (the "Bonds") and is soliciting (the "Solicitation") consents (the "Consents") of the holders of the Bonds to certain amendments to the indenture relating to the Bonds (the
"Indenture") with U.S. Bank National Association as trustee (the "Trustee"). The Tender Offer and the Solicitation will be on the terms and subject to the conditions set forth in the Offer to Purchase
and Consent Solicitation Statement (the "Statement") and Consent and Letter of Transmittal (the "Consent and Letter of Transmittal") attached hereto as Exhibits A and B, respectively. 

        2.    Appointment as Dealer Manager and Solicitation Agent.    Purchaser hereby appoints you as Dealer Manager and
Solicitation Agent (the "Dealer Manager and Solicitation Agent") and authorizes you to act as such in connection with the Tender Offer and Solicitation. As Dealer Manager and Solicitation Agent, you
agree, in accordance with your customary practice, to perform those services in connection with the Tender Offer and Solicitation as are customarily performed by investment banks in connection with
tender offers and consent solicitations of a like nature, including, but not limited to, using reasonable efforts to solicit tenders of Bonds and delivery of Consents pursuant to the Tender Offer
and Solicitation and communicating generally regarding the Tender Offer and Solicitation with brokers, dealers, commercial banks and trust companies and other holders of Bonds. In such capacity, you
shall act as an independent contractor, and each of your duties arising out of your engagement pursuant to this Agreement shall be owed solely to Purchaser. 

        Purchaser
further authorizes you to communicate with U.S. Bank National Association, in its capacity as depositary (the "Depositary"), and with Morrow & Co., Inc., in its
capacity as tabulation agent (the "Tabulation Agent") and in its capacity as information agent (the "Information Agent"), with respect to matters relating to the Tender Offer and Solicitation.
Purchaser has instructed the Depositary and the Tabulation Agent, as applicable, to advise you at least daily as to the number of Bonds that have been tendered pursuant to the Tender Offer, the number
of Consents that have been delivered pursuant to the Solicitation and as to such other matters in connection with the Tender Offer and Solicitation as you may request. 

        3.    No Liability for Acts of Dealers, Banks and Trust Companies.    Neither you nor any of your affiliates shall
have any liability to Purchaser or any other person for any losses, claims, damages, liabilities and expenses (each a "Loss" and collectively, the "Losses") arising from any act or omission on the
part of any broker or dealer in securities (a "Dealer"), bank or trust company, or any other person, and neither you nor any of your affiliates shall be liable for any Losses arising from your own
acts or omissions in performing your obligations as Dealer Manager and Solicitation Agent or as a Dealer hereunder or otherwise in connection with the Tender Offer or the Solicitation, except for any
such Losses which are finally judicially determined to have resulted primarily from your bad faith, gross negligence or material breach by you of your obligations under this Agreement. In soliciting
or obtaining tenders or delivery of Consents, no Dealer, bank or trust company is to be deemed to be acting as your agent or the agent of Purchaser or any of its affiliates, and you, as Dealer Manager
and Solicitation Agent, are not to be deemed the agent of any Dealer, bank or trust company or the agent or fiduciary of Purchaser or any of its affiliates, equity holders, creditors or of any other
person. In 

 

soliciting
or obtaining tenders of Bonds or delivery of Consents, you shall not be and shall not be deemed for any purpose to act as a partner or joint venturer of or a member of a syndicate or group
with Purchaser or any of its affiliates in connection with the Tender Offer or the Solicitation, any purchase of the Bonds, any payment for Consents or otherwise, and neither Purchaser nor any of its
affiliates shall be deemed to act as your agent. Purchaser shall have sole authority for the acceptance or rejection of any and all tenders of Bonds or delivery of Consents. 

        4.    The Tender Offer and Consent Solicitation Material.    Purchaser agrees to furnish you, at its expense, with as
many copies as you may request of (i) the Statement, (ii) the Consent and Letter of Transmittal and (iii) all statements and other documents filed or to be filed with the
Securities and Exchange Commission (the "Commission") or any other Federal, state, local or foreign governmental or
regulatory authorities or any court (each an "Other Agency" and collectively, the "Other Agencies"), any other documents (including press releases, advertisements and other communications, whether
prior to or after the execution of this Agreement), materials or filings relating to the Tender Offer or the Solicitation to be used by Purchaser or authorized by Purchaser for use in connection with
the Tender Offer or the Solicitation and any amendments or supplements to any such statements, documents, material or filings (the definitive forms of all of the foregoing materials are hereinafter
collectively referred to as the "Tender Offer and Consent Solicitation Material") to be used by Purchaser in connection with the Tender Offer and the Solicitation, and you are authorized to use copies
of the Tender Offer and Consent Solicitation Material in connection with the Tender Offer and the Solicitation. The Tender Offer and Consent Solicitation Material has been or will be prepared and
approved by, and is the sole responsibility of, Purchaser. 

        You
hereby agree, as Dealer Manager and Solicitation Agent, that you will not disseminate any written material for or in connection with the solicitation of tenders of Bonds and delivery
of Consents pursuant to the Tender Offer and Solicitation other than the Tender Offer and Consent Solicitation Material, and you agree that you will not make any statements in connection with such
solicitation, other than the statements that are set forth in the Tender Offer and Consent Solicitation Material or as otherwise authorized by Purchaser. 

        Purchaser
agrees that none of the Tender Offer and Consent Solicitation Material will be used in connection with the Tender Offer and the Solicitation or filed with the Commission or any
Other Agency with respect to the Tender Offer and Solicitation without first obtaining your prior approval, which approval shall not be unreasonably withheld. In the event that (i) Purchaser
uses or permits the use of any Tender Offer and Consent Solicitation Material in connection with the Tender Offer and the Solicitation or files any such material with the Commission or any Other
Agency without your prior approval or (ii) the Purchaser shall have breached in any material respect (to the extent not otherwise so qualified) any of the representations or warranties, or
failed to perform in any material respect (to the extent not otherwise so qualified) its obligations, under this Agreement, then you shall be entitled to withdraw as Dealer Manager and Solicitation
Agent in connection with the Tender Offer and the Solicitation without any liability or penalty to you or any Indemnified Person (as hereinafter defined), and you shall remain entitled to the
indemnification provided in Section 12 hereof and to receive the payment of all fees and expenses payable under this Agreement which have accrued to the date of such withdrawal or would
otherwise be due to you on such date. If you withdraw as Dealer Manager and Solicitation Agent, the fees accrued and reimbursement for your expenses through the date of such withdrawal shall be paid
to you promptly after such date. 

        5.    Compensation.    Purchaser agrees to pay you, as compensation for your services as Dealer Manager and
Solicitation Agent in connection with the Tender Offer and the Solicitation and subject to the consummation of the Tender Offer, a fee of $250,000, less up to $7,500 attributable to the fees of the
Information Agent, payable on the Payment Date (as defined in the Statement). 

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        6.    Expenses of Dealer Manager and Solicitation Agent and Others.    In addition to your compensation for your
services hereunder pursuant to Section 5 hereof, Purchaser agrees to pay directly, or reimburse you, as the case may be, for (a) all expenses incurred by you relating to the preparation,
printing, filing, mailing and publishing of all Tender Offer and Consent Solicitation Material, (b) all fees and expenses of the Depositary, the Information Agent and the Tabulation Agent
referred to in the Statement and all fees and expenses of the Trustee in connection with the execution of the Supplemental Indenture (as defined in the Statement), (c) all advertising charges
in connection with the Tender Offer and Solicitation, including those of any public relations firm or other person or entity rendering services in connection therewith, (d) all fees, if any,
payable to Dealers (including you), and banks and trust companies as reimbursement for their customary mailing and handling expenses incurred in forwarding the Tender Offer and Consent Solicitation
Material to their customers and (e) all other fees and expenses reasonably incurred by you in connection with the Tender Offer and Consent Solicitation or otherwise in connection with the
performance of your services hereunder (but excluding fees and disbursements of your legal counsel). All payments to be made by Purchaser pursuant to this Section 6 shall be made promptly
against delivery to Purchaser of statements therefor. Purchaser shall be liable for the foregoing payments whether or not the Tender Offer or the Solicitation is commenced, withdrawn, terminated or
canceled prior to the purchase of any Bonds or the receipt of any consents or whether Purchaser or any of its affiliates acquires any Bonds or consents pursuant to the Tender Offer and Consent
Solicitation or whether you withdraw pursuant to Section 4 hereof. 

        7.    Securityholder Lists.    Purchaser will use its commercially reasonable efforts to cause you to be provided with
cards or lists or other records in such form as you may reasonably request showing the names and addresses of, and the principal of Bonds held by, the holders of Bonds as of each date you may
reasonably request and will cause you to be advised from day to day during the period of the Tender Offer and Solicitation as to any transfers of record of Bonds. 

        8.    Sufficient Funds.    Purchaser represents and warrants to you that it has or, at the time Purchaser becomes
obligated to purchase Bonds under the Tender Offer and pay for Consents under the Solicitation, will have, sufficient funds to enable Purchaser to pay, and Purchaser hereby agrees that it will pay
promptly, in accordance with the terms and conditions of the Tender Offer and Solicitation and Sections 5 and 6 hereof and applicable law, the consideration (and related costs) for the Bonds and
Consents which Purchaser has offered, and which Purchaser may be required, to purchase under the Tender Offer and the Solicitation, and the fees and expenses payable hereunder. 

        9.    Additional Representations and Warranties of Purchaser.    Purchaser represents and warrants to you that: 

        a)    Purchaser
is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and is duly qualified to transact
business and is in good standing (to the extent such concepts are recognized in such jurisdictions) in each jurisdiction in which the conduct of its businesses or the ownership or leasing of property
requires such qualification, except to the extent that the failure to be so qualified or to be in good standing, considering all such cases in the aggregate, would not have a material adverse effect
on the business, properties, financial position or results of operations of Purchaser and all of its subsidiaries and affiliates taken as a whole, as the case may be. 

        b)    Purchaser
has full corporate power and authority to take and has duly taken all necessary corporate action to authorize (i) the Tender Offer and the Solicitation
and the other transactions contemplated by this Agreement or the Tender Offer and Consent Solicitation Material (including any related borrowings by Purchaser or any of its subsidiaries or
affiliates), (ii) the purchase by Purchaser of the Bonds pursuant to the Tender Offer and the payment by Purchaser for Consents pursuant to the Solicitation and (iii) the execution,
delivery and performance of this Agreement 

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and
the Supplemental Indenture and all related agreements by Purchaser, and this Agreement has been duly executed and delivered on behalf of Purchaser and, assuming due authorization, execution and
delivery of this Agreement by you, is a legal, valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms, except that the enforceability hereof may be
limited by (x) bankruptcy, insolvency, reorganization, moratorium and other laws now or hereafter in effect relating to creditors' rights generally and (y) general principles of equity.
When executed and delivered, the Supplemental Indenture will conform to the description thereof contained in the Statement, and the Supplemental Indenture will constitute valid and legally binding
obligations of Purchaser, enforceable against Purchaser in accordance with their terms, except that the enforceability thereof may be limited by (x) bankruptcy, insolvency, reorganization,
moratorium and other laws now or hereafter in effect relating to creditors' rights generally and (y) general principles of equity. The Supplemental Indenture will conform in all material
respects to the requirements of the Trust Indenture Act of 1939, as amended, and the rules and regulations promulgated by the Commission thereunder, applicable to an indenture which is qualified
thereunder. 

        c)     The
Tender Offer and Consent Solicitation Material complies or will comply in all material respects with the applicable provisions of the Securities Exchange Act of 1934,
as amended, and the rules and regulations promulgated by the Commission thereunder (collectively, the "Exchange Act"). The Tender Offer and Consent Solicitation Material does not, and as of the date
of payment of the Consent Payments, will not, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements made
therein, in light of the circumstances under which they are made, not misleading; provided, however, that no representation is made with respect to any
statements contained in, or any matter omitted from the Tender Offer and Consent Solicitation Material in reliance upon and in conformity with information pertaining to you furnished or confirmed in
writing by you to Purchaser expressly for use therein. All documents incorporated by reference in the Tender Offer and Consent Solicitation Material, as of the dates filed with the Commission
conformed or will conform, as the case may be, in all material respects to the requirements of the Exchange Act and the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder. The financial statements incorporated by reference in the Tender Offer and Consent Solicitation Material present fairly in all material respects the financial position of Purchaser and its
consolidated subsidiaries in conformity with generally accepted accounting principles in the United States applied on a consistent basis as of the dates indicated and the results of their operations
and their cash flows for the periods specified. 

        d)    In
connection with the Solicitation, Purchaser has complied, and will continue to comply, in all material respects with the applicable provisions of the Exchange Act. 

        e)    Purchaser
will file, if required, any and all necessary amendments or supplements to the documents filed with the Commission or Other Agencies or published or distributed
to the holders of the Bonds relating to the Tender Offer and the Solicitation and the other transactions contemplated by this Agreement or the Consent Solicitation Material and will promptly furnish
to you true and complete copies of each such amendment and supplement upon the filing thereof. 

        f)     The
Tender Offer, the Solicitation and the other transactions contemplated by this Agreement or the Tender Offer and Consent Solicitation Material (including any related
borrowings by Purchaser or any of its subsidiaries or affiliates), the purchase by Purchaser of Bonds pursuant to the Tender Offer, the payment by Purchaser for Consents pursuant to the Solicitation,
and the execution, delivery and performance of this Agreement and the Supplemental Indenture and all related agreements by Purchaser by Purchaser, comply and will comply in all material respects with
all applicable requirements of Federal, state, local and foreign law, including, without limitation, any applicable regulations of the Commission and Other Agencies, 

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and
all applicable judgments, orders or decrees; and no consent, authorization, approval, order, exemption, registration, qualification or other action of, or filing with or notice to, the Commission
or any Other Agency is required in connection with the execution, delivery and performance of this Agreement, the Supplemental Indenture or any related agreement by Purchaser, the making or
consummation by Purchaser of the Tender Offer and the Solicitation or the consummation of the other transactions contemplated by this Agreement or the Statement, except where the failure to obtain or
make such consent, authorization, approval, order, exemption, registration, qualification or other action or filing or notification would not materially adversely affect the ability of Purchaser to
execute, deliver and perform this Agreement, the Supplemental Indenture or any such related agreement or to commence and consummate the Tender Offer and Solicitation and such other transactions in
accordance with their respective terms. All such required consents, authorizations, approvals, orders, exemptions, registrations, qualifications and other actions of and filings with and notices to
the Commission and the Other Agencies will have been obtained, taken or made, as the case may be, and all statutory or regulatory waiting periods will have elapsed, prior to the purchase by Purchaser
of the Bonds pursuant to the Tender Offer and the payment by Purchaser for Consents pursuant to the Solicitation. 

        g)     The
Tender Offer and the Solicitation and the other transactions contemplated by this Agreement or the Tender Offer and Consent Solicitation Material (including any
related borrowings by Purchaser or any of its subsidiaries or affiliates), the purchase of Bonds by Purchaser pursuant to the Tender Offer and the payment by Purchaser for Consents pursuant to the
Solicitation, and the execution, delivery and performance of this Agreement, the Supplemental Indenture and all related agreements by Purchaser, do not and will not (i) conflict with or result
in a violation of any of the provisions of the certificate of incorporation or by-laws (or similar organizational documents) of Purchaser or any of its subsidiaries, (ii) conflict
with or violate in any material respect any law, rule, regulation, order, judgment or decree applicable to Purchaser or any of its subsidiaries or by which any property or asset of Purchaser or any of
its subsidiaries is or may be bound or (iii) result in a breach of any of the material terms or provisions of, or constitute a default (with or without due notice, lapse of time or both) under,
the Indenture or any loan or credit agreement, indenture, mortgage, note or other agreement or instrument to which Purchaser or any of its subsidiaries is a party or by which any of them or any of
their respective properties or assets is or may be bound. 

        h)    No
stop order, restraining order or denial of an application for approval has been issued and no investigation, proceeding or litigation has been commenced or, to
Purchaser's knowledge, after due inquiry, threatened before the Commission or any Other Agency with respect to the making or consummation of the Tender Offer and the Solicitation (including the
obtaining or use of funds to purchase Bonds or to pay for Consents pursuant thereto) or the consummation of the other transactions contemplated by this Agreement or the Statement or with respect to
the ownership of the Bonds by Purchaser or any of its subsidiaries or affiliates. 

        i)     Purchaser
has no knowledge of any material fact or information concerning Purchaser or any of its subsidiaries, or the operations, assets, condition (financial or
otherwise) or prospects of Purchaser or any of its subsidiaries, that is required to be made generally available to the public and that has not been, or is not being, or will not be, made generally
available to the public through the Tender Offer and Consent Solicitation Material or otherwise. 

        j)     Since
the date of the latest audited financial statements of Purchaser, there has been no material adverse change, nor any development or event that would reasonably be
expected to result in a material adverse change, in the operations, assets, condition (financial or otherwise) or prospects of Purchaser or any of its subsidiaries. 

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        k)    Purchaser
is not, nor will be as a result of the purchase by Purchaser of Bonds that it may become obligated to purchase pursuant to the terms of the Tender Offer, an
"investment company" under the Investment Company Act of 1940, as amended, and the rules and regulations promulgated by the Commission thereunder. 

        l)     Each
of the representations and warranties set forth in this Agreement will be true and correct on and as of the date on which the Tender Offer and Solicitation is
commenced and on and as of the date on which any Bonds are purchased or Consent Solicitation is commenced and on and as of the date on which any Consent Solicitation Material is first distributed to
holders of the Securities and through the last date on which any Consents are paid for pursuant to the Tender Offer and the Solicitation. 

        10.    Opinion of Purchaser's Counsel.    Purchaser shall deliver to you an opinion addressed to you and dated a date
that is no later than five (5) business days following the date hereof of Cahill Gordon & Reindel LLP, special counsel to Purchaser, with respect to the matters set forth in
Exhibit C. Purchaser agrees not to consummate the Tender Offer or the Solicitation unless and until it has complied with its obligations set forth in this Section 10. 

        11.    Notification of Certain Events.    Purchaser shall advise you promptly of (a) the occurrence of any
event that could reasonably be expected to cause Purchaser to withdraw, rescind, modify or terminate the Tender Offer or Solicitation or would permit Purchaser to exercise any right not to purchase
Bonds tendered under the Tender Offer or to pay for any Consents delivered pursuant to the Solicitation, (b) the occurrence of any event, or the discovery of any fact, the occurrence or
existence of which it believes would require the making of any change in any of the Tender Offer and Consent Solicitation Material then being used or would cause any representation or warranty
contained in this Agreement to be untrue or inaccurate in any material respect, (c) any proposal or requirement to make, amend or supplement any filing required by the Exchange Act in
connection with the Tender Offer and the Solicitation or the other transactions contemplated by this Agreement or the Tender Offer and Consent Solicitation Material or the other transactions
contemplated by this Agreement or the Tender Offer and Consent Solicitation Material or to make any filing in connection with the Tender Offer and the Solicitation pursuant to any other applicable
law, rule or regulation, (d) the issuance by the Commission or any Other Agency of any formal or informal comment or order or the taking of any other action concerning the Tender Offer and the
Solicitation or the other transactions contemplated by this Agreement or the Tender Offer and Consent Solicitation Material (and, if in writing, will furnish you with a copy thereof), (e) any
material developments in connection with the Tender Offer and the Solicitation, or the financing thereof or the other transactions contemplated by this Agreement or the Tender Offer and Consent
Solicitation Material, including, without limitation, the commencement of any lawsuit concerning the Tender Offer and the Solicitation and (f) any other information relating to the Tender Offer
and the Solicitation, the Tender Offer and Consent Solicitation Material or this Agreement or the other transactions contemplated by this Agreement or the Tender Offer and Consent Solicitation
Material which you may from time to time reasonably request. 

        12.    Indemnification.    

        (a)   Purchaser
agrees to hold harmless and indemnify you (including any affiliated companies) and any officer, member, director, partner, employee or agent of yours (or any
of such affiliated companies) and any entity or person controlling (within the meaning of Section 20(a) of the Exchange Act) you) including any affiliated companies) (collectively, the
"Indemnified Persons") from and against any and all Losses whatsoever (including, but not limited to, any and all expenses incurred in investigating, preparing or defending against any litigation or
proceeding, commenced or threatened, or any claims whatsoever whether or not resulting in any liability) (i) arising out of or based upon any untrue statement or alleged untrue statement of a
material fact contained in the Tender Offer and Consent Solicitation Material or in any other material used by Purchaser, or 

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authorized
by Purchaser for use in connection with the Tender Offer and the Solicitation or the transactions contemplated thereby or by this Agreement, or arising out of or based upon the omission or
alleged omission to state in any such document a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading (other than statements or omissions made in reliance upon information pertaining to you furnished by you in writing to Purchaser expressly for use therein), (ii) arising out of or
based upon any withdrawal by Purchaser of, or failure by Purchaser to make or consummate, the Tender Offer, the Solicitation or the other transactions contemplated by this Agreement or the Tender
Offer and Consent Solicitation Material or any other failure to comply with the terms and conditions specified in the Tender Offer and Consent Solicitation Material, (iii) arising out of the
breach or alleged breach by Purchaser of any representation, warranty or covenant set forth in this Agreement (iv) arising out of, relating to or in connection with any other action taken or
omitted to be taken by an Indemnified Person arising out of, relating to or in connection with the Tender Offer and the Solicitation, the other transactions described in the Tender Offer and Consent
Solicitation Material or your services as Dealer Manager and Solicitation Agent hereunder or (v) otherwise arising out of, relating to or in connection with the Tender Offer and the
Solicitation, the other transactions described in the Tender Offer and Consent Solicitation Material or your services as Dealer Manager and Solicitation Agent hereunder. Purchaser shall not, however,
be responsible for any Loss pursuant to clauses (iv) or (v) of the preceding sentence of this Section 12 which has been finally judicially determined to have resulted primarily
from the bad faith or gross negligence on the part of any Indemnified Person or material breach by you of your obligations contained in this Agreement, other than any Loss arising out of or resulting
from actions performed at the direct request of, with the explicit consent of, or in conformity with information directly provided or supplied by, Purchaser. 

        b)    Purchaser
and you agree that if any indemnification sought by any Indemnified Person pursuant to this Section 12 is unavailable for any reason (other than for the
reason that such indemnification is unavailable due to the exception to clauses (a)(iv) and (a)(v) in Section 12 relating to any Loss which has been finally judicially determined
to have resulted primarily from the bad faith or gross negligence on the part of the Indemnified Person or material breach by you of your obligations contained in this Agreement) or insufficient to
hold you harmless, then Purchaser and you shall contribute to the Losses for which such indemnification is held unavailable or insufficient in such proportion as is appropriate to reflect the relative
benefits received (or anticipated to be received) by Purchaser, on the one hand, and actually received by you, on the other hand, in connection with the transactions contemplated by this Agreement or
the Tender Offer and Consent Solicitation Material or, if such allocation is not permitted by applicable law, not only such relative benefits but also the relative faults of Purchaser, on the one
hand, and you, on the other hand, as well as any other equitable considerations, subject to the limitation that in any event the aggregate contribution by you to all Losses with respect to which
contribution is available hereunder shall not exceed the fees actually received by you in connection with
your engagement hereunder. It is hereby agreed that the relative benefits to Purchaser, on the one hand, and you, on the other hand, with respect to the Tender Offer and the Solicitation and the
transactions contemplated by this Agreement and the Tender Offer and Consent Solicitation Material shall be deemed to be in the same proportion as (i) the total value paid or proposed to be
paid to holders of Bonds pursuant to the Tender Offer and the Solicitation (whether or not the Tender Offer and the Solicitation or such transactions are consummated) bears to (ii) the fees
actually received by you from Purchaser in connection with your engagement hereunder. 

        c)     The
foregoing rights to indemnity and contribution shall be in addition to any other right which you and the other Indemnified Persons may have against Purchaser at
common law or otherwise. If any litigation or proceeding is brought against any Indemnified Person in respect of which indemnification may be sought against Purchaser pursuant to this
Section 12, such 

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Indemnified
Person shall promptly notify Purchaser in writing of the commencement of such litigation or proceeding, but the failure so to notify Purchaser shall relieve Purchaser from any liability
which it may have hereunder only if, and to the extent that, such failure results in the forfeiture by Purchaser of substantial rights and defenses, and will not in any event relieve Purchaser from
any other obligation or liability that it may have to any Indemnified Person other than under this Agreement. In case any such litigation or proceeding shall be brought against any Indemnified Person
and such Indemnified Person shall notify Purchaser in writing of the commencement of such litigation or proceeding, Purchaser shall be entitled to participate in such litigation or proceeding, and,
after written notice from Purchaser to such Indemnified Person, to assume the defense of such litigation or proceeding with counsel of its choice at its expense; provided,
however, that such counsel shall be satisfactory to the Indemnified Person in the exercise of its reasonable judgment. Notwithstanding the election of Purchaser to assume the
defense of such litigation or proceeding, such Indemnified Person shall have the right to employ separate counsel and to participate in the defense of such litigation or proceeding, and Purchaser
shall bear the reasonable fees, costs and expenses of such separate counsel and shall pay such fees, costs and expenses at least quarterly (provided that with respect to any single litigation or
proceeding or with respect to several litigations or proceedings involving substantially similar legal claims, Purchaser shall not be required to bear the fees, costs and expenses of more than one
such counsel for all Indemnified Persons except where such Indemnified Persons require local counsel, in which case Purchaser shall also be required to bear the reasonable fees, costs and expenses of
such local counsel) if (i) in the reasonable judgment of such Indemnified Person the use of counsel chosen by Purchaser to represent such Indemnified Person would present such counsel with a
conflict of interest, (ii) the defendants in, or targets of, any such litigation or proceeding include both an Indemnified Person and Purchaser, and such Indemnified Person shall have
reasonably concluded that there may be legal defenses available to it or to other Indemnified Persons that are different from or additional to those available to Purchaser (in which case Purchaser
shall not have the right to direct the defense of such action on behalf of the Indemnified Person), (iii) Purchaser shall not have employed counsel satisfactory to such Indemnified Person, in
the exercise of the Indemnified Person's reasonable judgment, to represent such Indemnified Person within a reasonable time after notice of the institution of such litigation or proceeding or
(iv) Purchaser shall authorize in writing such Indemnified Person to employ separate counsel at the expense of Purchaser. In any action or proceeding the defense of which Purchaser assumes, the
Indemnified Person shall have the right to participate in such litigation and retain its own counsel at such Indemnified Person's own expense. Purchaser and you agree to notify the other promptly of
the assertion of any claim against it, any of its directors or officers or any entity or person who controls it within the meaning of Section 20(a) of the Exchange Act in connection with the
Tender Offer and the Solicitation. The foregoing indemnification commitments shall apply whether or not the Indemnified Person is a formal party to such litigation or proceeding. 

        d)    Purchaser
agrees to reimburse each Indemnified Person for all expenses (including reasonable fees and disbursements of counsel) as they are incurred by such Indemnified
Person in connection with investigating, preparing for, defending or providing evidence (including appearing as a witness) with respect to any action, claim, investigation, inquiry, arbitration or
other proceeding referred to in this Section 12 for which indemnification may be sought hereunder or enforcing this Agreement, whether or not in connection with pending or threatened litigation
in which any Indemnified Person is a party. 

        e)    Purchaser
agrees that it will not, without your prior written consent, settle, compromise or consent to the entry of any judgment in any pending or threatened claim,
action or proceeding in respect of which indemnification may be sought hereunder (whether or not you, any other Indemnified Person or Purchaser is an actual or potential party), unless such
settlement, compromise or consent (i) includes an unconditional release of each Indemnified Person from all 

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liability
arising out of such claim, action or proceeding and (ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf of any
Indemnified Person. As a condition to any indemnity or contribution hereunder, without Purchaser's prior written consent, which consent will not be unreasonably withheld, no Indemnified Person will
settle, compromise or consent to entry of judgment in connection with any pending or threatened claim, action or proceeding in respect of which indemnity or contribution may be sought hereunder
(whether or not Purchaser is an actual or potential party to such claim, action or proceeding). 

        13.    Conditions to Obligations of the Dealer Manager and Solicitation Agent.    Your obligations hereunder shall at
all times be subject to the conditions that (a) all representations, warranties and other statements of Purchaser contained herein are now, and at all times during the period of the Tender
Offer and the Solicitation shall be, true and correct in all material respects and (b) Purchaser at all times shall have performed in all material respects all of its obligations hereunder
theretofore to be performed. 

        14.    Termination.    This Agreement shall terminate upon the expiration, termination or withdrawal of the Tender
Offer and the Solicitation or upon withdrawal by you as Dealer Manager and Solicitation Agent pursuant to Section 4 hereof, it being understood that Sections 3, 5, 6, 8, 9, 12, 14, 16, 17, 19,
20, 21, 22 and 23 hereof shall survive any termination of this Agreement. 

        15.    Notices.    All notices and other communications required or permitted to be given under this Agreement shall
be in writing and shall be given (and shall be deemed to have been given upon receipt) by delivery in person, by cable, by telecopy, by telegram, by telex or by registered or certified mail (postage
prepaid, return receipt requested) to the applicable party at the addresses indicated below: 

	 	 	 	 	 
	 	 	a)	 	if to you:
	

 	
 	

 	
 	

CREDIT SUISSE FIRST BOSTON LLC

Eleven Madison Avenue

New York, NY 10010-3629

Telecopy No.: (212) 325-4296

Attention: Transactions Advisory Group
	 	 	 	 	 
	 	 	 	 	with a copy to:
	 	 	 	 	 
	 	 	 	 	Cravath, Swaine & Moore LLP

825 Eighth Avenue

New York, NY 10019

Telecopy No.: 212-474-3700

Attention: George A. Stephanakis, Esq.
	 	 	 	 	 
	 	 	b)	 	if to Purchaser:
	 	 	 	 	 
	 	 	 	 	Reddy Ice Group, Inc.

8750 North Central Expressway

Suite 1800

Dallas, TX 75231
	 	 	 	 	 
	 	 	 	 	Telecopy No.: 214-528-1532

Attention: Steve Janusek
	 	 	 	 	 
	 	 	 	 	 

9

 

	 	 	 	 	with a copy to:
	 	 	 	 	 
	 	 	 	 	Cahill Gordon & Reindel LLP

80 Pine Street

New York, NY 10005
	 	 	 	 	 
	 	 	 	 	Telecopy No.: 212-269-5420

Attention: John Papachristos, Esq.

        16.    Consent to Jurisdiction; Service of Process.    Purchaser and the Dealer Manager and
Solicitation Agent each hereby (a) submits to the jurisdiction of any New York State or Federal court sitting in the City of New York with respect to any actions and proceedings arising out of
or relating to this Agreement, (b) agrees that all claims with respect to such actions or proceedings may be heard and determined in such New York State or Federal court, (c) waives the
defense of an inconvenient forum, (d) agrees not to commence any action or proceeding relating to this Agreement other than in a New York State or Federal court sitting in the City of New York
and (e) agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by
law. 

        17.    Joint and Several Obligations, Etc.    In the event that Purchaser makes the Tender Offer and the Solicitation
through one or more of its affiliates, each reference in this Agreement to Purchaser shall be deemed to be a reference to Purchaser and any such affiliates, and the representations, warranties,
covenants and agreements of Purchaser and any such affiliates hereunder shall be joint and several. 

        18.    Entire Agreement.    This Agreement constitutes the entire agreement among the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and undertakings, both written and oral, among the parties, or any of them, with respect to the subject matter hereof. 

        19.    Amendment.    This Agreement may not be amended except in writing signed by each of Purchaser and the Dealer
Manager and Solicitation Agent. Any such amendment will bind all parties in interest, including all Indemnified Persons, without notice to or consent from any such parties in interest. 

        20.    Governing Law.    The validity and interpretation of this Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of New York, without regard to conflicts of law principles thereof. 

        21.    Waiver of Jury Trial.    PURCHASER (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF
OF ITS SECURITY HOLDERS) AND THE DEALER MANAGER AND SOLICITATION AGENT EACH HEREBY AGREES TO WAIVE ANY RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY CLAIM, COUNTER-CLAIM OR ACTION ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (INCLUDING, WITHOUT LIMITATION, THE TENDER OFFER). 

        22.    Counterparts; Severability.    This Agreement may be executed in two or more separate counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same instrument. Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or
affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction. 

10

 

        23.    Parties in Interest.    This Agreement, including rights to indemnity and contribution hereunder, shall be
binding upon and inure solely to the benefit of each party hereto, the Indemnified Persons and their respective successors, heirs and assigns, and nothing in this Agreement, express or implied, is
intended to or shall confer upon any other person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. 

        24.    Assignment.    This Agreement shall not be assignable, in whole or in part, directly or indirectly, by either
Purchaser or the Dealer Manager and Solicitation Agent without the prior written consent of the other, and any attempt to assign any rights or obligations arising under this Agreement without such
consent shall be void. 

Please
indicate your willingness to act as Dealer Manager and Solicitation Agent and your acceptance of the foregoing provisions by signing in the space provided below for that purpose and returning
to us a copy of this Agreement so signed, whereupon this Agreement and your acceptance shall constitute a binding agreement between us. 

	

 	
 	

 	
 	

 
	 	 	Very truly yours,
	

 	
 	

REDDY ICE GROUP, INC.
	

 	
 	

By:	
 	

/s/  STEVEN J. JANUSEK      
 Name: Steven J. Janusek

Title: CFO

Accepted as of the

date first above written: 

	

CREDIT SUISSE FIRST BOSTON LLC	
 	

 
	

By:	
 	

/s/  MICHAEL L. SARON      
 Name: Michael L. Saron

Title: Director	
 	

 

11

 
 
 

Exhibit A    
    

 
 

Offer to Purchase and Consent Solicitation    
    

12

 
 
 

Exhibit B    
    

 
 

Consent and Letter of Transmittal    
    

13

 
 
 

Exhibit C    
    

 
 

Matters to be Addressed in the Opinion of Cahill Gordon & Reindel LLP    
    

        a.     Purchaser
is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. 

        b.     Purchaser
has full corporate power and authority to take and has duly taken all necessary corporate action to authorize (i) the Tender Offer and the Solicitation
(including any related borrowings by Purchaser or any of its subsidiaries or affiliates), (ii) the purchase by Purchaser of Bonds pursuant to the Tender Offer and the payment by Purchaser for
Consents pursuant to the Solicitation and (iii) the execution, delivery and performance of this Agreement and the Supplemental Indenture by Purchaser. This Agreement has been duly executed and
delivered on behalf of Purchaser and, assuming due authorization, execution and delivery of this Agreement by the Dealer Manager and Solicitation Agent, this Agreement is a legal, valid and binding
obligation of Purchaser, enforceable against Purchaser in accordance with its terms, except that (A) the enforceability thereof may be subject to bankruptcy, insolvency, reorganization,
fraudulent conveyance, moratorium or other similar laws now or hereafter in effect relating to or affecting creditors' rights or remedies generally, (B) the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceedings therefor may be brought (regardless of whether
enforcement is sought in a proceeding at law or in equity) and (C) the enforceability of provisions imposing liquidated damages, penalties or an increase in interest rate upon the occurrence of
certain events may be limited in certain circumstances. 

        c.     The
Tender Offer and the Solicitation or the other transactions contemplated by this Agreement or the Tender Offer and Consent Solicitation Material (including any
related borrowings by Purchaser or any of its subsidiaries or affiliates), the purchase of Bonds by Purchaser pursuant to the Tender Offer and the payment by the Purchaser for Consents pursuant to the
Solicitation, and the execution, delivery and performance of this Agreement and the Supplemental Indenture by Purchaser, do not and will not (i) conflict with or result in a violation of any of
the provisions of the certificate of incorporation or by-laws (or similar organizational documents) of Purchaser or any of its subsidiaries, (ii) result in a violation of any New
York, Delaware corporate or United States federal law or regulation that is applicable to Purchaser to the transactions contemplated by the Agreement, or result in a violation of any order of any
court or of any other governmental agency or instrumentality having jurisdiction over Purchaser or any of the properties or assets of Purchaser or any of its subsidiaries or (iii) result in a
breach of any of the terms or provisions of, or constitute a default (with or without due notice and/or lapse of time) under, any loan or credit agreement, indenture, mortgage, note or other agreement
or instrument indicated on Schedule I hereto to which Purchaser or any of its subsidiaries is a party or by which any of them or any of their properties or assets is or may be bound. 

        d.     The
Tender Offer and the Solicitation or the other transactions contemplated by this Agreement or the Tender Offer and Consent Solicitation Material (including any
related borrowings by Purchaser or any of its subsidiaries or affiliates), the purchase by Purchaser of Bonds pursuant to the Tender Offer and payment by the Purchaser for Consents pursuant to the
Solicitation, and the execution, delivery and performance of this Agreement by Purchaser, comply and will comply in all material respects with all applicable requirements of any existing Federal or
New York statute or the Delaware General Corporation Law including, without limitation, any applicable regulations of the Commission, and all applicable judgments, orders or decrees, and no consent,
authorization, approval, order, exemption, registration, qualification or other action of, or filing with or notice to, the Commission is required in connection with the execution, delivery and
performance of this Agreement, the Supplemental Indenture or any related agreement by Purchaser, the making or consummation by Purchaser of the Tender Offer and the Solicitation or the consummation of
the other transactions 

14

 

contemplated
by this Agreement or the Statement, except where the failure to obtain or make such consent, authorization, approval, order, exemption, registration, qualification or other action or
filing or notification would not materially adversely affect the ability of Purchaser to execute, deliver and perform this Agreement, the Supplemental Indenture or such related agreement or to
commence and consummate the Tender Offer, the Solicitation or such other transactions in accordance with their respective terms. 

        e.     Except
as expressly disclosed in the Statement, no stop order, restraining order or denial of an application for approval has been issued and no investigation, proceeding
or litigation has been commenced or, to the best of such counsel's knowledge, after due inquiry, threatened before the Commission with respect to the making or consummation of the Tender Offer or the
Solicitation (including the obtaining or use of funds to purchase Bonds or the payment for Consents pursuant thereto) by Purchaser or any of its subsidiaries or affiliates or the consummation of the
other transactions contemplated by this Agreement or the Tender Offer and Consent Solicitation Material or with respect to the ownership of the Bonds by Purchaser or any of its subsidiaries or
affiliates. 

        f.      Purchaser
is not, nor will be as a result of the purchase by Purchaser of Bonds that it may become obligated to purchase pursuant to the terms of the Tender Offer, an
"investment company" under the Investment Company Act of 1940, as amended, and the rules and regulations promulgated by the Commission thereunder. 

        Such
counsel shall advise that no facts have come to its attention which has caused it to believe that the Tender Offer and Consent Solicitation Material (apart from the financial
information contained or incorporated by reference therein, as to which such counsel expresses no opinion), as of the date of the Dealer Manager Agreement, contains any untrue statement of a material
fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading. 

CREDIT
SUISSE FIRST BOSTON LLC

    Eleven Madison Avenue

        New York, NY 10010-3629 

15

 
 
 

Schedule I    
    

 
 

List of Reviewed Agreements    
    

16

QuickLinks

Dealer Manager And Consent Solicitation Agreement

Exhibit A

Offer to Purchase and Consent Solicitation

Exhibit B

Consent and Letter of Transmittal

Exhibit C

Matters to be Addressed in the Opinion of Cahill Gordon & Reindel LLP

Schedule I

List of Reviewed AgreementsExhibit 10.7

 

AMENDED AND RESTATED

CHANGE OF CONTROL AGREEMENT

 

This Amended
and Restated Change of Control Agreement (the “Agreement”) is made and entered
into effective as of                          ,
2004, by and between                          
(the “Employee”) and Conceptus, Inc., a Delaware corporation (the “Company”).  This Agreement supersedes in its entirety the
original Change of Control Agreement entered into effective as of May 13, 1997
between Employee and the Company.

 

RECITALS

 

A.                                   It
is expected that another company or other entity may from time to time consider
the possibility of acquiring the Company or that a change of control may
otherwise occur, with or without the approval of the Company’s Board of
Directors (the “Board”).  The Board recognizes
that such consideration can be a distraction to the Employee, an executive
officer or director-level employee of the Company, and can cause the Employee
to consider alternative employment opportunities.  The Board has determined that it is in the
best interests of the Company and its stockholders to assure that the Company
will have the continued dedication and objectivity of the Employee,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below) of the Company.

 

B.                                     The
Board believes that it is in the best interests of the Company and its
stockholders to provide the Employee with an incentive to continue his or her
employment with the Company.

 

C.                                     The
Board believes that it is imperative to provide the Employee with certain
benefits upon a Change of Control and, under certain circumstances, upon
termination of the Employee’s employment in connection with a Change of
Control, which benefits are intended to provide the Employee with financial
security and provide sufficient income and encouragement to the Employee to
remain with the Company notwithstanding the possibility of a Change of Control.

 

D.                                    To
accomplish the foregoing objectives, the Board of Directors has directed the
Company, upon execution of this Agreement by the Employee, to agree to the
terms provided in this Agreement.

 

E.                                      Certain
capitalized terms used in the Agreement are defined in Section 4 below.

 

AGREEMENT

 

In
consideration of the mutual covenants contained in this Agreement, and in
consideration of the continuing employment of Employee by the Company, the
parties agree as follows:

 

 

1.                                       AT-WILL
EMPLOYMENT.  The Company and the Employee
acknowledge that the Employee’s employment is and shall continue to be at-will,
as defined under applicable law.  If the
Employee’s employment terminates for any reason, including (without limitation)
any termination prior to a Change of Control, the Employee shall not be
entitled to any payments or benefits, other than as required under applicable
law or as provided by this Agreement, or as may otherwise be available in
accordance with the terms of the Company’s then existing employee plans and
written policies in effect at the time of termination.  The terms of this Agreement shall terminate
upon the earliest of (i) the date on which Employee ceases to be employed as an
executive officer or director-level employee of the Company; (ii) the date that
all obligations of the parties hereunder have been satisfied, or (iii) two (2)
years after a Change of Control.  A termination
of the terms of this Agreement pursuant to the preceding sentence shall be
effective for all purposes, except that such termination shall not affect the
payment or provision of compensation or benefits on account of a termination of
employment occurring prior to the termination of the terms of this Agreement.

 

2.                                       STOCK
OPTIONS.

 

(a)                                  HOSTILE
TAKEOVER.  Subject to Sections 5 and 6
below, in the event of a Hostile Takeover and regardless of whether the
Employee’s employment with the Company is terminated in connection with the
Hostile Takeover, each stock option granted for the Company’s securities
(collectively the “Options”) and each share of restricted stock of the Company
held by the Employee shall become fully vested and/or immediately exercisable,
as applicable, immediately prior to the consummation of the transaction and
with respect to the Options shall be exercisable to the extent so vested in
accordance with the provisions of the Company’s stock option agreement and
stock option plan pursuant to which such Options were granted.

 

(b)                                 CHANGE
OF CONTROL.  Subject to Sections 5 and 6
below, in the event of a Change of Control and regardless of whether the
Employee’s employment with the Company is terminated in connection with the
Change of Control, each Option and share of restricted Company Stock held by
the Employee shall become vested and/or immediately exercisable immediately
prior to the consummation of the transaction as to fifty percent (50%) of the
Option and restricted shares that have not otherwise vested as of such
date.  The Option and restricted shares
that remain unvested as of the effective date of the transaction shall
thereafter vest at the same rate (that is, the same number of shares shall vest
during each vesting period) that was in effect prior to the Change of Control,
and shall accordingly vest over a period that is one-half of the total vesting
period that would otherwise be then remaining under the terms of the option or
restricted stock agreement pursuant to which each such Option or restricted
stock was granted, subject to any acceleration based on the subsequent
attainment of performance targets.

 

3.                                       CHANGE
OF CONTROL.

 

(a)                                  TERMINATION
FOLLOWING A CHANGE OF CONTROL.  Subject
to Sections 5 and 6 below, if the Employee’s employment with the Company is
terminated at any 

 

2

 

time within
two (2) years after a Change of Control, then the Employee shall be entitled to
receive severance benefits as follows:

 

(i)                                     VOLUNTARY
RESIGNATION.  If the Employee voluntarily
resigns from the Company (other than as an Involuntary Termination (as defined
below) or if the Company terminates the Employee’s employment for Cause (as
defined below)), then the Employee shall not be entitled to receive severance
payments under this Agreement.  The
Employee’s benefits will be terminated under the Company’s then existing
benefit plans and policies in accordance with such plans and policies in effect
on the date of termination or as otherwise determined by the Board of Directors
of the Company.

 

(ii)                                  INVOLUNTARY
TERMINATION.  If the Employee’s
employment terminates as a result of an Involuntary Termination other than for
Cause, the Employee shall be entitled to receive the following benefits:  (i) severance payments during the period from
the date of the Employee’s termination until the date 12 months after the
effective date of the termination (the “Severance Period”) equal to the salary
which the Employee was receiving immediately prior to the change of control,
which payments shall be paid during the Severance Period in accordance with the
Company’s standard payroll practices; (ii) monthly severance payments during
the Severance Period equal to 1/12th of the Employee’s “target bonus” (as
defined below) for the fiscal year in which the termination occurs (or the most
recent fiscal year for which a cash target bonus was determined if a cash
target bonus has not yet been determined for the fiscal year in which the
termination occurs); (iii) continuation of all health and life insurance
benefits through the end of the Severance Period substantially identical to
those to which the Employee was entitled immediately prior to the termination,
or to those being offered to officers of the Company, or a successor corporation,
if the Company’s benefit programs are changed during the Severance Period; (iv)
full and immediate vesting of each unvested Option and share of restricted
Company stock held by the Employee on the date of termination so that each such
option shall be exercisable in full and each share of restricted stock shall be
fully vested on the termination date in accordance with the provisions of the
option and/or restricted stock agreement, as applicable, and plan pursuant to
which such stock awards were granted; and (v) outplacement services with a
total value not to exceed $15,000.  For
purposes of this Agreement, the term “target bonus” shall mean a cash bonus
equal to the Employee’s base salary in effect immediately prior to the change
of control multiplied by that percentage of such base salary that is prescribed
by the Company under its Officer Incentive Plan as the percentage of such base
salary payable to the Employee as a cash bonus if the Company pays bonuses at
one-hundred percent (100%) of its operating plan.

 

(iii)                               INVOLUNTARY
TERMINATION FOR CAUSE.  If the Employee’s
employment is terminated for Cause, then the Employee shall not be entitled to
receive severance payments under this Agreement.  The Employee’s benefits will be terminated
under the Company’s then existing benefit plans and policies in accordance with
such plans and policies in effect on the date of termination.

 

(b)                                 TERMINATION
APART FROM A CHANGE OF CONTROL.  In the
event the Employee’s employment terminates for any reason, either prior to the
occurrence of a Change of Control or after the two year period following the
effective date of a Change of Control, then the 

 

3

 

Employee shall
not be entitled to receive any severance payments under this Agreement.  The Employee’s benefits will be terminated
under the terms of the Company’s then existing benefit plans and policies in
accordance with such plans and policies in effect on the date of termination or
as otherwise determined by the Board of Directors of the Company.  Notwithstanding anything contained in this
Agreement to the contrary, if the Employee’s employment is terminated prior to
a Change of Control (other than a termination for Cause) and it is determined
that such termination (i) was at the request of a third party who has
indicated an intention or taken steps reasonably calculated to effect a Hostile
Takeover or Change of Control and who subsequently effectuates a Hostile
Takeover or Change of Control (a “Third Party”) or (ii) otherwise occurred
in connection with, or in anticipation of, a Hostile Takeover or Change of
Control which actually occurs, then, for all purposes of this Agreement, the
date of a Hostile Takeover or Change of Control with respect to the Employee
shall mean the date immediately prior to the date of such termination of the
Employee’s employment, and the Employee shall be entitled to payments and
benefits commencing as of such date.

 

4.                                       DEFINITION
OF TERMS.  The following terms referred
to in this Agreement shall have the following meanings:

 

(a)                                  CHANGE
OF CONTROL.  “Change of Control” shall
mean the occurrence of any of the following events:

 

(i)                                     OWNERSHIP.  Any “Person” (as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended
(the “Act”) in one or more related transactions is or becomes the “Beneficial
Owner” (as defined in Rule 13d-3 under the Act), directly or indirectly, of
securities of the Company representing fifty percent (50%) or more of the total
voting power represented by the Company’s outstanding voting securities without
regard to whether the Board has approved such

acquisition(s).

 

(ii)                                  MERGER/SALE
OF ASSETS.  A merger or consolidation of
the Company whether or not approved by the Board of Directors of the Company,
other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least fifty percent (50%) of the total
voting power represented by the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation, or
the stockholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or
substantially all of the Company’s assets.

 

(iii)                               CHANGE
IN BOARD COMPOSITION.  A change in the
composition of the Board of Directors of the Company, as a result of which
fewer than a majority of the directors are Incumbent Directors.  “Incumbent Directors” shall mean directors
who either (A) are directors of the Company as of                          
, 2004 or (B) are elected, or nominated for election, to the Board of Directors
of the Company with the affirmative votes of at least a majority of the
Incumbent Directors at the time of such election or nomination (but shall not
include an individual whose election or nomination is in connection with an
actual or threatened proxy contest relating to the election of directors to the
Company).

 

4

 

(b)                                 CAUSE.  “Cause” shall mean (i) gross negligence or
willful misconduct in the performance of the Employee’s duties to the Company
where such gross negligence or willful misconduct has resulted or is likely to
result in substantial and material damage to the Company or its subsidiaries,
(ii) repeated unexplained or unjustified absence from the Company, (iii) a material
and willful violation of any federal or state law; (iv) commission of any act
of fraud with respect to the Company; or (v) conviction of a felony or a crime
involving moral turpitude causing material harm to the standing and reputation
of the Company, in each case as determined in good faith by the Board of
Directors of the Company.

 

(c)                                  HOSTILE
TAKEOVER.  “Hostile Takeover”  shall mean any transaction (or one or more
related transactions) pursuant to which any “Person” (as such term is used in
Sections 13(d) and 14(d) of the Act) is or becomes the “Beneficial Owner” (as
defined in Rule 13d-3 under the Act), directly or indirectly, of securities of
the Company representing fifty percent (50%) or more of the total voting power
represented by the Company’s outstanding voting securities without regard to
whether the Board has approved such acquisition(s).

 

(d)                                 INVOLUNTARY
TERMINATION.  “Involuntary Termination”
means any termination by the Company other than for Cause and the Employee’s
voluntary termination, upon 30 days prior written notice to the Company,
following (i) any reduction of the Employee’s base compensation, bonus
opportunity or benefits (other than equity or equity related benefits or
reductions made in connection with a general decrease in base salaries, bonus
opportunities or benefits, as applicable for most similarly situated executives
of the successor corporation); (ii) the Employee’s refusal to relocate to a
location more than 50 miles from the Company’s current location; (iii) any action
by the Company that results in a diminution in the Employee’s authority, duties
and responsibilities; (iv) a material breach by the Company of any of its
obligations hereunder and (v) any failure by a successor to assume and perform
the Company’s obligations hereunder.

 

5.                                       LIMITATION
ON PAYMENTS.  To the extent that any of
the payments or benefits provided for in this Agreement or otherwise to the
Employee (collectively the “Payments”) constitute “parachute payments” within
the meaning of Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”) and, but for this Section 5, would be subject to the
excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then
such Payment shall be equal to the Reduced Amount.  The “Reduced Amount” shall be either (x) the
largest portion of the Payments that would result in no portion of the Payments
being subject to the Excise Tax or (y) the largest portion, up to and including
the total, of the Payments, whichever amount, after taking into account all
applicable federal, state and local employment taxes, income taxes, and the
Excise Tax (all computed at the highest applicable marginal rate), results in
the Employee’s receipt, on an after-tax basis, of the greater amount of the
Payments notwithstanding that all or some portion of the Payment may be subject
to the Excise Tax.  If a reduction in
payments or benefits constituting “parachute payments” is necessary so that the
Payment equals the Reduced Amount, reduction shall occur in the following order
unless the Employee elects in writing a different order (provided, however, that such election shall be subject to
Company approval if made on or after the effective date of the event that
triggers the Payment): reduction of cash payments; cancellation of accelerated
vesting of stock options and 

 

5

 

restricted
stock; reduction of employee benefits. 
In the event that acceleration of vesting of stock compensation is to be
reduced, such acceleration of vesting shall be cancelled in the reverse order
of the date of grant of the Employee’s stock options and restricted stock
(i.e., earliest granted stock awards cancelled last) unless the Employee elects
in writing a different order for cancellation.

 

The accounting
firm engaged by the Company for general audit purposes as of the day prior to
the effective date of the Hostile Takeover or Change of Control shall perform
the foregoing calculations.  If the
accounting firm so engaged by the Company is serving as accountant or auditor
for the individual, entity or group effecting the Hostile Takeover or Change of
Control, the Company shall appoint a nationally recognized accounting firm to
make the determinations required hereunder. 
The Company shall bear all expenses with respect to the determinations
by such accounting firm required to be made hereunder.

 

The accounting
firm engaged to make the determinations hereunder shall provide its
calculations, together with detailed supporting documentation, to the Employee
and the Company within fifteen (15) calendar days after the date on which the
Employee’s right to a Payment is triggered (if requested at that time by the
Employee or the Company) or such other time as requested by the Employee or the
Company.  If the accounting firm
determines that no Excise Tax is payable with respect to the Payments, either
before or after the application of the Reduced Amount, it shall furnish the
Employee and the Company with an opinion reasonably acceptable to the Employee
that no Excise Tax will be imposed with respect to such Payment.  Any good faith determinations of the
accounting firm made hereunder shall be final, binding and conclusive upon the
Employee and the Company.

 

6.                                       SUCCESSORS.  Any successor to the Company (whether direct
or indirect and whether by purchase, lease, merger, consolidation, liquidation
or otherwise) to all or substantially all of the Company’s business and/or
assets shall assume the obligations under this Agreement and agree expressly to
perform the obligations under this Agreement in the same manner and to the same
extent as the Company would be required to perform such obligations in the
absence of a succession.  The terms of
this Agreement and all of the Employee’s rights hereunder shall inure to the
benefit of, and be enforceable by, the Employee’s personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.

 

7.                                       NOTICE.  Notices and all other communications
contemplated by this Agreement shall be in writing and shall be deemed to have
been duly given when personally delivered or when mailed by U.S. registered or
certified mail, return receipt requested and postage prepaid.  Mailed notices to the Employee shall be
addressed to the Employee at the home address which the Employee most recently
communicated to the Company in writing. 
In the case of the Company, mailed notices shall be addressed to its
corporate headquarters, and all notices shall be directed to the attention of
its Secretary.

 

8.                                       MISCELLANEOUS
PROVISIONS.

 

(a)                                  NO
DUTY TO MITIGATE.  The Employee shall not
be required to mitigate the amount of any payment contemplated by this
Agreement (whether by seeking new employment or in any other manner), nor,
except as otherwise provided in this Agreement, shall any such payment be
reduced by any earnings that the Employee may receive from any other source.

 

6

 

(b)                                 WAIVER.  No provision of this Agreement shall be
modified, waived or discharged unless the modification, waiver or discharge is
agreed to in writing and signed by the Employee and by an authorized officer of
the Company (other than the Employee). 
No waiver by either party of any breach of, or of compliance with, any
condition or provision of this Agreement by the other party shall be considered
a waiver of any other condition or provision or of the same condition or
provision at another time.

 

(c)                                  WHOLE
AGREEMENT.  No agreements,
representations or understandings (whether oral or written and whether express
or implied) which are not expressly set forth in this Agreement have been made
or entered into by either party with respect to the subject matter hereof.  This Agreement supersedes any agreement of
the same title or concerning similar subject matter dated prior to the date of
this Agreement, and by execution of this Agreement both parties agree that any
such predecessor agreement shall be deemed null and void.

 

(d)                                 CHOICE
OF LAW.  The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the State of California without reference to conflict of laws provisions.

 

(e)                                  SEVERABILITY.  If any term or provision of this Agreement or
the application thereof to any circumstance shall, in any jurisdiction and to
any extent, be invalid or unenforceable, such term or provision shall be
ineffective as to such jurisdiction to the extent of such invalidity or
unenforceability without invalidating or rendering unenforceable the remaining
terms and provisions of this Agreement or the application of such terms and
provisions to circumstances other than those as to which it is held invalid or
unenforceable, and a suitable and equitable term or provision shall be
substituted therefor to carry out, insofar as may be valid and enforceable, the
intent and purpose of the invalid or unenforceable term or provision.

 

(f)                                    ARBITRATION.

 

(i)                                     Except
as provided below, any controversy or dispute which establishes a legal or
equitable cause of action (“Claim”) between the Employee and the Company
arising out of, or relating to Employee’s employment and/or this Agreement
shall be submitted to final and binding arbitration as the sole and exclusive
remedy for such controversy or dispute. 
It is the parties’ intent that issues of arbitrability of any dispute
shall be decided by the Arbitrator.

 

(ii)                                  Regardless
of whether the Federal Arbitration Act would apply by operation of law,
Employee and Company agree that the right and duty to resolve any controversy
or dispute by arbitration shall be governed exclusively by the Federal
Arbitration Act, as amended, and arbitration shall take place according to the
applicable rules of the American Arbitration Association (“AAA”)] in effect as
of the date the demand for arbitration is filed.  If for any reason the Federal Arbitration Act
is found not to apply or govern, this agreement to arbitrate shall be governed
by applicable state law.

 

(iii)                               The
arbitration shall take place before one arbitrator.  Such arbitrator shall be provided through the
AAA by mutual agreement of the parties to the arbitration; provided that,
absent such agreement, the arbitrator shall be selected in accordance with the
rules of AAA 

 

7

 

then in
effect.  In either event, such arbitrator
may not have any preexisting, direct or indirect relationship with any party to
the arbitration.

 

(iv)                              The
arbitration shall be held at the office of AAA nearest the Company facility to
which Employee was assigned prior to the dispute; provided, however, if such
office is outside the state in which Employee resides, Employee may cause the
arbitration to be held within Employee’s state of residence at a place mutually
convenient to the parties thereto and arbitrator.

 

(v)                                 The
costs of arbitration to be paid shall not include any costs unique to
arbitration, nor exceed the amount such person would have had to pay in court
costs had the matter been pursued in court. 
The Company shall be responsible for all other cost payable to AAA in
connection with the arbitration, including the cost and fees of the
arbitrator.  The arbitrator shall make
such orders with respect to attorneys’ fees and other costs and expenses
related to the arbitration as provided by applicable law.

 

(vi)                              The
award or decision of the arbitrator shall be rendered in writing; shall be
final and binding on the parties; and may be enforced by judgment or order of a
court of competent jurisdiction.

 

(vii)                           The
arbitrator shall have no authority to amend or modify the terms and conditions
of this Agreement, it being expressly understood and agreed that the arbitrator
shall have all such powers as a court would have, sitting without a jury, to
determine the validity and enforceability of any of the provisions hereof.

 

(viii)                        Notwithstanding
this Section (f), the Company and the Employee shall have the right to
seek from a court of competent jurisdiction provisional non-monetary remedies
including, but not limited to, temporary restraining orders or preliminary
injunctions before, during or after arbitration to the extent such remedies are
not available through arbitration or cannot be obtained in a timely fashion
through arbitration.  The Company and the
Employee need not await the outcome of the arbitration before seeking
provisional remedies.  Seeking any such
remedies shall not be deemed to be a waiver of such person’s right to compel
arbitration.

 

(g)                                 LEGAL
FEES AND EXPENSES.  The parties shall
each bear their own expenses, legal fees and other fees incurred in connection
with this Agreement.

 

(h)                                 NO
ASSIGNMENT OF BENEFITS.  The rights of
any person to payments or benefits under this Agreement shall not be made
subject to option or assignment, either by voluntary or involuntary assignment
or by operation of law, including (without limitation) bankruptcy, garnishment,
attachment or other creditor’s process, and any action in violation of this subsection (h)
shall be void.

 

(i)                                     EMPLOYMENT
TAXES.  All payments made pursuant to
this Agreement will be subject to withholding of applicable income and
employment taxes.

 

(j)                                     ASSIGNMENT
BY COMPANY.  The Company may assign its
rights under this Agreement to an affiliate, and an affiliate may assign its
rights under this Agreement to another 

 

8

 

affiliate of
the Company or to the Company; provided, however, that no assignment shall be
made if the net worth of the assignee is less than the net worth of the Company
at the time of assignment.  In the case
of any such assignment, the term “Company” when used in a section of this
Agreement shall mean the corporation that actually employs the Employee.

 

(k)                                  COUNTERPARTS.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument.

 

9

 

IN WITNESS
WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the day and year first above
written.

 

 

	
  CONCEPTUS, INC.

  	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
								

 

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