EXHIBIT 10(g)
CONSULTING AGREEMENT
THIS CONSULTING AGREEMENT ("Agreement") is made by Imperial Sugar
Company ("Company") and Xxxxxx X. XxXxxxxxxx ("XxXxxxxxxx") (the "Consultant"),
this 22nd day of October, 2001.
RECITALS
A. Company is presently engaged, among other things, in the business of
manufacturing, selling, marketing, and shipping raw sugar, refined sugar, and
related by-products.
B. Consultant possesses considerable management knowledge and senior
corporate officer expertise about the Company, its customers, and the raw and
refined sugar industry.
C. Company and Consultant desire to enter into an agreement whereby
Consultant will be available to the Company in a senior management capacity.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are acknowledged, the Company and Consultant agree:
1. Agreement to Retain and to Render Services. The Company engages
Consultant and Consultant accepts such engagement, to provide senior management
consulting services to the Company during the term of this Agreement. Consultant
shall render such consulting services as requested by the Board of Directors of
the Company and outlined in its letter to XxXxxxxxxx of November 9, 2001
(Exhibit 1A).
2. Term. The term of this Agreement shall commence on October 22, 2001 and
shall continue in full force and effect until April 30, 2002, or until such time
as mutually agreed upon by Company and Consultant for the purpose of completing
the tasks contemplated under this contract.
3. Consulting Fee. All fees shall be remitted to The Xxxxxx Group however,
XxXxxxxxxx shall be the only provider of management services and expertise to
the Company. The fee arrangement is outline in Exhibit 1A.
4. Non-employee Status/Indemnification. For all purposes under this
Agreement, Consultant shall be deemed to be an independent contractor and not an
employee of the Company. Consultant agrees that he is not eligible to
participate in any of the Company's employee benefit plans, programs, or
policies, Consultant agrees he will not represent to any other individual or
entity that he is an employee of the Company.
5. Confidentiality. Requirements are outlined in Exhibit 1A.
6. Indemnification. See Exhibit 1A.
7. Entire Agreement. This Agreement contains the entire understanding
between the parties. It may not be changed orally, but only by agreement in
writing signed by the party against whom enforcement of any waiver, change,
modification, or discharge is sought.
8. Waiver. The failure of either party to insist in any one or more
instances upon the performance of any term or condition of this Agreement shall
not be construed as a waiver of future performance of any such term or
condition, but the obligations of either party with respect thereto shall
continue in full force and effect.
9. Severability. If any provision or part of a provision of this Agreement
shall be determined to be void and unenforceable by a court of competent
jurisdiction, the remainder of this Agreement shall remain valid and
enforceable.
10. Assignment. Neither the Company nor Consultant may assign this
Agreement without the express written consent of the non-assigning party.
11. Binding Effect. This Agreement shall be binding upon, and inure to the,
benefit of, the parties hereto and their respective successors, heirs, and
permitted assigns.
12. Applicable Law. Texas law shall govern the validity, construction,
interpretation, and effect of this Agreement. The language contained herein
shall be deemed to be that negotiated and approved by both parties and no rule
of strict construction shall be applied against either party.
IN WITNESS WHEREOF, Imperial Sugar Company has caused its duly
authorized officers to execute this Agreement and affix its corporate seal
hereto, and Xxxxxx X. XxXxxxxxxx has hereunto set his hand and seal us of the
day and year first above written.
Imperial Sugar Company
By: /s/ Xxxxx X. Xxxxxxx
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Its: Director
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/s/ Xxxxxx X. XxXxxxxxxx
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Xxxxxx X. XxXxxxxxxx
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November 9, 2001
Xxxxxx X. XxXxxxxxxx
The Xxxxxx Group
000 Xxxxxxxx Xxxxxxx, Xxx 000
Xxxxxxxx, XX 00000
Dear Xxx:
This letter will outline the terms of the retention of The Xxxxxx Group and its
appointment of you to act as President and CEO (Phase I) of Imperial Sugar
Company in addition to your duties as Chairman of the Board. The term of the
initial phase of this engagement shall be October 22, 2001 through April 30,
2002 serving at the pleasure of the Board of Directors. Thereafter you shall
resume solely the duties of Chairman of the Board (Phase II). You shall commit
fifteen (15) business days per month during Phase I to corporate activity and
shall receive remuneration of $75,000 per month (paid semi-monthly in arrears)
for services to be outlined herein. During Phase I, in the event you devote more
than fifteen (15) business days per month in performing your duties, it will be
necessary for you to inform the Chairman of the Compensation Committee of the
need and obtain his approval to commit the time. You will be compensated at the
rate of $5,000 per day for such additional time. Compensation during Phase II
shall be $8,750 per month. If a successor President and CEO is recruited and
hired during Phase I, you shall receive the Phase I contracted fees through
April 30, 2002.
You will have a bonus opportunity of $250,000 to be paid at termination of Phase
I assignment for achieving objectives to be agreed upon by you and the Board of
Directors, the determination of achievement of these goals shall be within the
sole discretion of the Board of Directors. The general objectives will be
described in Exhibit A attached hereto and they will be finalized after the
November 9, 2001 Board of Directors Meeting.
You shall receive an option grant of 1% of the outstanding common stock of the
company (circa 112,345 shares) vesting equally over three years. Vesting of
options would fully accelerate during a change in control. You shall not be
eligible for any other option grants or opportunities unless later specifically
amended by the Board of Directors.
In addition to generally accepted business, travel and entertainment expenses,
the Company shall provide reimbursement for the following items as incurred
during Phase I:
a. An apartment in the Houston metropolitan area.
b. Weekly return trips to your domicile in the San Francisco, CA area.
c. Health club membership in Houston.
d. You shall submit all requests for expense reimbursement to X.X. Xxxxxx,
Executive Vice President for review and approval or referral to the
Executive Compensation Committee.
If this independent contractor relationship is terminated by the Board of
Directors other than for cause prior to April 30, 2002, you shall receive the
contracted monthly fee for the remaining term of Phase I prorated for partial
months of service. If terminated for cause, you shall be compensated only
through the effective date of termination.
The Xxxxxx Group shall perform the services under the Agreement as an
independent contractor. The Xxxxxx Group shall have the right to control and use
its discretion as to the manner of the performance of the services to be
provided, in that the result of The Xxxxxx Group's services and not the means by
which they are accomplished is of primary importance to the Company. The Company
shall not withhold FICA taxes or Federal or State income taxes from The Xxxxxx
Group's fees and shall not make any payments of employer FICA or other taxes
with respect to The Xxxxxx Group's fees. The Xxxxxx Group shall be responsible
for paying all applicable income taxes on fees paid hereunder. Neither The
Xxxxxx Group nor its staff shall participate in any of the Company's employee
benefits or profit sharing programs.
The Xxxxxx Group agrees that it will not divulge to third parties, without the
written consent of the Company, any information obtained from or through the
Company in connection with the performance of this Agreement, unless (a) the
information was known prior to obtaining same from the Company, (b) the
information is, at the time of disclosure by the Company, then in the public
domain, or (c) the information is obtained by The Xxxxxx Group from a third
party who did not receive same, directly or indirectly, from the Company or who
received it from the Company without confidentiality restriction. The Xxxxxx
Group further agrees that it will not, without the prior written consent of the
Company, disclose to any third party any information relating to the Company
developed by The Xxxxxx Group in the performance of this Agreement, except to
the extent that said information falls within one of the categories described in
(a), (b), or (c) above.
Imperial Sugar Company does hereby indemnify The Xxxxxx Group, TSG personnel,
subcontractors and related parties (the "Indemnitee"), performing services,
under this agreement from any indirect, special, incidental or consequential
damages of any kind or nature whatsoever. The Company shall indemnify, hold
harmless and defend the indemnitee from and against any and all claims, actions,
damages, demands, judgments, settlements, costs and liabilities of any kind or
nature whatsoever involving or against the indemnitee arising out of the
services performed hereunder or any act or omission in the performance thereof;
provided, however, that such indemnification, shall not apply to damages
resulting solely from the indemnitee willful, reckless or gross negligent
misconduct. The Company will wire transfer $75,000 to you immediately,
consisting of $37,500 for the period October 22-31, 2001 and $37,500 for the
period November 1-15, 2001.
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Please indicate your agreement with these terms by signing in the space provided
below.
Sincerely,
/s/ Xxxxx X. Xxxxxxx
Xxxxx X. Xxxxxxx
For the Compensation Committee of the
Board of Directors of Imperial Sugar
Company
JAG:sd
cc: X.X. Xxxxxx, Esq.
Agreed and Accepted:
/s/ Xxxxxx X. XxXxxxxxxx Date: November 9, 2001
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Xxxxxx X. XxXxxxxxxx
The Xxxxxx Group
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