Exhibit 10.32
FIRST AMENDMENT TO
EMPLOYMENT AGREEMENT
This FIRST AMENDMENT TO THE EMPLOYMENT AGREEMENT by and among Xxxxxx'x
Grand Ice Cream, Inc., a Delaware corporation (the "Company") and T. Xxxx Xxxxxx
(the "Executive"), dated as of June 16, 2002 (the "Agreement"), is dated as of
July 21, 2003.
WHEREAS, the Company, Xxxxxx'x Grand Ice Cream Holdings, Inc. (formerly
known as New December, Inc.), a Delaware corporation ("New Dreyer's") and wholly
owned subsidiary of the Company, December Merger Sub, Inc., a Delaware
corporation and wholly owned subsidiary of New Dreyer's, Nestle Holdings, Inc.,
a Delaware corporation ("Nestle") and NICC Holdings, Inc., a Delaware
corporation and wholly owned indirect subsidiary of Nestle ("NICC") have entered
into an Agreement and Plan of Merger Contribution, dated as of June 16, 2002 (as
such agreement may hereafter be amended, the "Merger Agreement"), pursuant to
which, among other things, the Company and NICC have become wholly owned
subsidiaries of New Dreyer's effective as of June 26, 2003; and
WHEREAS, the Company and the Executive have entered into the Agreement
to provide for the employment of the Executive by the Company, and the Executive
wishes to serve the Company, in the capacities and on the terms and subject to
the conditions set forth in the Agreement; and
WHEREAS, in view of the fact that the Effective Time of the Merger (as
defined in the Merger Agreement) occurred later than originally anticipated, the
Company and the Executive agree that it is appropriate to amend the Agreement as
set forth in this First Amendment; and
WHEREAS, Section 9(c) of the Agreement requires that the Company cause
New Dreyer's to become a party to and co-obligor under the Agreement;
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
1. Vesting of Deferred Options. Section 1(b) of the Agreement is
hereby amended to read as follows:
In consideration for the protections afforded to the
Executive under this Agreement, the Executive hereby waives
the vesting of the Deferred Options (as defined below) that
has occurred or may hereafter occur solely as a result of the
applicability of the change-of-control provisions of Section
11 of the Company's Stock Option Plan (1993) (the "Option
Plan") upon the approval of the Merger Agreement by the Board
of Directors of the Company (the "Board") and/or the
transactions contemplated by the Merger Agreement, and agrees
that the Deferred Options shall vest in accordance with the
schedule set forth in Exhibit A hereto, subject to the terms
of the Deferred Options, the Option Plan and the provisions of
Sections 4(a)(iv), 4(b)(iii) and 4(c)(v) of this Agreement.
Notwithstanding the foregoing, if the Merger Agreement is
terminated as a result of a Change in Control occurring before
the Effective Time of the Merger: (i) such waiver and the
preceding sentence shall be void unless expressly reaffirmed
as contemplated by Section 1(a) above; and (ii) if such
reaffirmation occurs, the Deferred Options
shall vest in three equal annual installments on each of the
first three anniversaries of the Agreement Effective Date,
with each such annual installment including a pro-rata portion
of each separate grant of Deferred Options. The "Deferred
Options" means those stock options that have been granted to
the Executive under the Option Plan that are outstanding on
the date of this Agreement that would not be vested on the
date of this Agreement, absent the fact that approval of the
Merger Agreement by the Board caused them to vest pursuant to
Section 11 of the Option Plan. In addition, the Executive
consents to the treatment of his options to purchase Company
common stock provided for in Section 2.11(e) of the Merger
Agreement. Except as provided otherwise in this Agreement or
the Merger Agreement, the Deferred Options shall continue to
be subject to the Option Plan and the terms of the underlying
award agreement, including without limitation the provision
that vested Deferred Options will remain exercisable for at
least three months following any termination of the
Executive's employment for any reason, whether during or after
the end of the Employment Period (but not after the expiration
of the original option term).
2. New Dreyer's. New Dreyer's acknowledges that, as required by
Exection 9(c) of the Agreement: (a) as of the Effective Time of the Merger on
June 26, 2003, New Dreyer's has become an additional party to the Agreement and
a co-obligor with respect to the obligations of the Company under the Agreement;
and (b) from and after the Effective Time of the Merger, the references in
Section 3(b) and 3(c) of the Agreement to the "Board" shall be deemed to refer
to the Board of Directors of New Dreyer's, and all references in the Agreement
to the Company shall be deemed to refer to both the Company and New Dreyer's.
3. Agreement Ratified. The Agreement is ratified and confirmed
without amendment, except as specifically provided above.
4. Counterparts. This First Amendment may be executed
simultaneously in two counterparts, each of which shall be deemed an original
but which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand
and, pursuant to the authorization from their respective boards of directors,
the Company and New Dreyer's each has caused these presents to be executed in
its name on its behalf, all as of the day and year first above written.
/s/ T. Xxxx Xxxxxx
---------------------------------------------
T. XXXX XXXXXX
XXXXXX'X GRAND ICE CREAM, INC.
By: /s/ T. Xxxx Xxxxxx
---------------------------------------
Name: T. Xxxx Xxxxxx
Title: Chairman of the Board
and Chief Executive Officer
XXXXXX'X GRAND ICE CREAM HOLDINGS, INC.
By: /s/ T. Xxxx Xxxxxx
---------------------------------------
Name: T. Xxxx Xxxxxx
Title: Chairman of the Board
and Chief Executive Officer
Exhibit A
VESTING SCHEDULE FOR DEFERRED OPTIONS
Page: 1
OPTIONS AND AWARDS SUMMARY XXXXXX'X GRAND ICE CREAM, INC.
File: Optsum
[ ] ID:00-0000000
Date: 8/4/2003
[ ] 0000 Xxxxxxx Xxxxxx
Time: 3:39:36PM
[ ] As of: 0/00/0000Xxxxxxx, Xxxxxxxxxx 00000
Current Market Value: $79.000000
T. XXXX XXXXXX ID: ###-##-####
0000 XXXXXXX XXXXX
XXXXXXX, XX 00000
OPTION NO.: 000560 OPTION DATE: 3/4/1997 SHARES: 120,000 PRICE: $15.191400 PLAN: NQ93 TYPE: NQ
V E S T I N G S C H E D U L E T R A N S A C T I O N S C A N C E L L A T I O N S
Granted Full Vest Exercisable Total Price Expires Date Type Shares Value Date Reason Shares
48,000 3/4/1999 48,000 $ 729,187.20 3/4/2007
24,000 3/4/2000 24,000 $ 364,593.60 3/4/2007
24,000 3/4/2001 24,000 $ 364,593.60 3/4/2007
24,000 3/4/2002 24,000 $ 364,593.60 3/4/2007
120,000 120,000 $ 1,822,968.00
OPTION NO.: 000861 OPTION DATE: 3/3/1998 SHARES: 85,300 PRICE: $22.875000 PLAN: NQ93 TYPE: NQ
V E S T I N G S C H E D U L E T R A N S A C T I O N S C A N C E L L A T I O N S
Granted Full Vest Exercisable Total Price Expires Date Type Shares Value Date Reason Shares
34,120 3/3/2000 34,120 $ 780,495.00 3/3/2008
17,060 3/3/2001 17,060 $ 390,247.50 3/3/2008
17,060 3/3/2002 17,060 $ 390,247.50 3/3/2008
5,687 6/26/2004 0 $ 0.00 3/3/2008
5,687 6/26/2005 0 $ 0.00 3/3/2008
5,686 4/3/2006 0 $ 0.00 3/3/2008
85,300 68,240 $1,560,990.00
OPTION NO.: 000880 OPTION DATE: 2/23/1999 SHARES: 37,000 PRICE: $12.375000 PLAN: NQ93 TYPE: NQ
V E S T I N G S C H E D U L E T R A N S A C T I O N S C A N C E L L A T I O N S
Granted Full Vest Exercisable Total Price Expires Date Type Shares Value Date Reason Shares
14,800 2/23/2001 14,800 $183,150.00 2/23/2009
7,400 2/23/2002 7,400 $ 91,575.00 2/23/2009
4,933 6/26/2004 0 $ 0.00 2/23/2009
4,933 6/26/2005 0 $ 0.00 2/23/2009
4,934 4/3/2006 0 $ 0.00 2/23/2009
37,000 22,200 $274,725.00
OPTION NO.: 001059 OPTION DATE: 2/23/1999 SHARES: 130,300 PRICE: $12.375000 PLAN: NQ93 TYPE: NQ
V E S T I N G S C H E D U L E T R A N S A C T I O N S C A N C E L L A T I O N S
Granted Full Vest Exercisable Total Price Expires Date Type Shares Value Date Reason Shares
52,120 2/23/2001 52,120 $644,985.00 2/23/2009
26,060 2/23/2002 26,060 $322,492.50 2/23/2009
17,373 6/26/2004 0 $0.00 2/23/2009
17,373 6/26/2005 0 $ 0.00 2/23/2009
17,374 4/3/2006 0 $ 0.00 2/23/2009
130,300 78,180 $967,477.50
OPTION NO.: 001130 OPTION DATE: 2/23/2000 SHARES: 119,350 PRICE: $17.343750 PLAN: NQ93 TYPE: NQ
V E S T I N G S C H E D U L E T R A N S A C T I O N S C AN C E L L A T I O N S
Granted Full Vest Exercisable Total Price Expires Date Type Shares Value Date Reason Shares
47,740 2/23/2002 47,740 $827,990.63 2/23/2010
23,870 6/26/2004 0 $ 0.00 2/23/2010
23,870 6/26/2005 0 $ 0.00 2/23/2010
23,870 4/3/2006 0 $ 0.00 2/23/2010
119,350 47,740 $827,990.63
OPTION NO.: 001556 OPTION DATE: 2/14/2001 SHARES: 83,210 PRICE: $31.125000 PLAN: NQ93 TYPE: NQ
V E S T I N G S C H E D U L E T R A N S A C T I O N S C A N C E L L A T I O N S
Granted Full Vest Exercisable Total Price Expires Date Type Shares Value Date Reason Shares
0 6/14/2002 0 $0.00 2/14/2011
27,737 6/26/2004 0 $0.00 2/14/2011
27,737 6/26/2005 0 $0.00 2/14/2011
27,736 4/3/2006 0 $0.00 2/14/2011
83,210 0 $0.00
OPTION NO.: 001835 OPTION DATE: 2/7/2002 SHARES: 69,740 PRICE: $39.395000 PLAN: NQ93 TYPE: NQ
V E S T I N G S C H E D U L E T R A N S A C T I N S C A N C E L L A T I O N S
Granted Full Vest Exercisable Total Price Expires Date Type Shares Value Date Reason Shares
0 6/14/2002 0 $0.00 2/7/2012
23,247 6/26/2004 0 $0.00 2/7/2012
23,247 6/26/2005 0 $0.00 2/7/2012
23,246 4/3/2006 0 $0.00 2/7/2012
69,740 0 $0.00
Total Options Exercisable: 336,360
Total Price: $ 5,454,151.13
Total Potential Gain: $21,118,288.88
