EMPLOYMENT AGREEMENT
Exhibit 10.2
THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as of August 6, 2009, by and between B&G FOODS, INC. (hereinafter the “Corporation”) and XXXXXXX X. XXXXXX (hereinafter “Herbes”).
WHEREAS, subject to the terms of this Agreement, Corporation desires to employ Herbes as Executive Vice President of Operations, and Herbes desires to accept such employment.
NOW THEREFORE, in consideration of the material advantages accruing to the two parties and the mutual covenants contained herein, the Corporation and Herbes agree with each other as follows
1. Effective Date. For purposes of this Agreement, the “Effective Date” shall mean August 6, 2009.
2. Employment. Herbes will render full-time professional services to the Corporation and, as directed by the Corporation, to its subsidiaries or other Affiliates (as defined in Paragraph 3 below), in the capacity of Executive Vice President of Operations under the terms and conditions of this Agreement. He will at all times, faithfully, industriously and to the best of his ability, perform all duties that may be required of him by virtue of his position as Executive Vice President of Operations and in accordance with the directions and mandates of the Board of Directors of the Corporation. It is understood that these duties shall be substantially the same as those of an executive vice president of operations of a similar business corporation engaged in a similar enterprise, provided, however, that upon the Effective Date Herbes will assume responsibility for the supply chain portions of the Company’s operations department, including all logistics, purchasing and planning functions, and co-packer manufacturing but will not assume responsibility for internal manufacturing until the Corporation’s Executive Vice President of Manufacturing retires, which is expected to occur in 2010. Herbes is hereby vested with authority to act on behalf of the Corporation in keeping with policies adopted by the Board of Directors, as amended from time to time. Herbes shall report to the President and Chief Executive Officer (hereinafter the “Chief Executive Officer”) and the Board of Directors.
3. Services to Subsidiaries or Other Affiliates. The Corporation and Herbes understand and agree that if and when the Corporation so directs, Herbes shall also provide services to any subsidiary or other Affiliate (as defined below) by virtue of his employment under this Agreement. If so directed, Herbes agrees to serve as Executive Vice President of Operations of such subsidiary or other Affiliate of the Corporation, as a condition of his employment under this Agreement, and upon the termination of his employment under this Agreement, Herbes shall no longer provide such services to the subsidiary or other Affiliate. The parties recognize and agree that Herbes shall perform such services as part of his overall professional services to the Corporation but that in certain circumstances approved by the Corporation he may receive additional compensation from such subsidiary or other Affiliate. For purposes of this Agreement, an “Affiliate” is any corporation or other entity that is controlled by,
controlling or under common control with the Corporation. “Control” means the direct or indirect beneficial ownership of at least fifty (50%) percent interest in the income of such corporation or entity, or the power to elect at least fifty (50%) percent of the directors of such corporation or entity, or such other relationship which in fact constitutes actual control.
4. Term of Agreement. The initial term of Herbes’ employment under this Agreement shall commence on the Effective Date and end on December 31, 2010; provided that unless notice of termination has been provided in accordance with Paragraph 7(a) at least sixty (60) days prior to the expiration of the initial term or any additional twelve (12) month term (as provided below), or unless this Agreement is otherwise terminated in accordance with the terms of this Agreement, this Agreement shall automatically be extended for additional twelve (12) month periods (the “Term”).
5. Base Compensation. During the Term, in consideration for the services as Executive Vice President of Operations required under this Agreement, the Corporation agrees to pay Herbes an annual base salary of Two Hundred Fifty Thousand Dollars ($250,000), or such higher figure as may be determined at an annual review of his performance and compensation by the Compensation Committee of the Board of Directors. The annual review of Herbes’ base salary shall be conducted by the Compensation Committee of the Board of Directors within a reasonable time after the end of each fiscal year of the Corporation and any increase shall be retroactive to January 1st of the then current Agreement year. The amount of annual base salary shall be payable in equal installments consistent with the Corporation’s payroll payment schedule for other executive employees of the Corporation. Herbes may choose to select a portion of his compensation to be paid as deferred income through qualified plans or other programs consistent with the policy of the Corporation and subject to any and all applicable federal, state or local laws, rules or regulations.
6. Other Compensation and Benefits. During the Term, in addition to his base salary, the Corporation shall provide Herbes the following:
(a) Incentive Compensation. Herbes shall participate in the Company’s annual bonus plan (the “Annual Bonus Plan”), as shall be adopted and/or modified from time to time by the Board of Directors or the Compensation Committee. Annual Bonus Plan awards are calculated as a percentage of Herbes’ base salary on the last day of the Annual Bonus Plan performance period. The percentages of base salary that Herbes is eligible to receive based on performance range from 0% at “Threshold” to 35% at “Target” and to 70% at “Maximum,” as such terms are defined in the Annual Bonus Plan. Notwithstanding the foregoing, for the performance period in which the Effective Date occurs, Herbes’ bonus under the Annual Bonus Plan shall be determined on a pro rata basis applying the percentages set forth above to his base salary multiplied by a fraction, the numerator of which is the number of days transpired in the performance period beginning on the Effective Date and ending on the last day of the performance period and the denominator of which is the number of days in the entire performance period. Annual Bonus Plan awards are payable no later than the 15th day of the third month following the end of each fiscal year of the Corporation. In addition, beginning in 2010 Herbes shall be eligible to participate in all other incentive compensation plans, if any, that
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may be adopted by the Corporation from time to time and with respect to which the other executive employees of the Corporation are eligible to participate.
(b) Vacation. Herbes shall be entitled to four (4) weeks of compensated vacation time during each year, to be taken at times mutually agreed upon between him and the Chief Executive Officer of the Corporation. Vacation accrual shall be limited to the amount stated in the Corporation’s policies currently in effect, as amended from time to time.
(c) Sick Leave and Disability. Herbes shall be entitled to participate in such compensated sick leave and disability benefit programs as are offered to the Corporation’s other executive employees.
(d) Medical and Dental Insurance. Herbes, his spouse, and his dependents, shall be entitled to participate in such medical and dental insurance programs as are provided to the Corporation’s other executive employees.
(e) Executive Benefits And Perquisites. Herbes shall be entitled to receive all other executive benefits and perquisites to which all other executive employees of the Corporation are entitled.
(f) Automobile and Cellular Phone. The Corporation agrees to provide Herbes with a monthly automobile allowance of $833.33 and to provide for the use by Herbes of a cellular telephone at the Corporation’s expense.
(g) Liability Insurance. The Corporation agrees to insure Herbes under the appropriate liability insurance policies, in accordance with the Corporation’s policies and procedures, for all acts done by him within the scope of his authority in good faith as Executive Vice President of Operations throughout the Term.
(h) Professional Meetings and Conferences. Herbes will be permitted to be absent from the Corporation’s facilities during working days to attend professional meetings and to attend to such outside professional duties as have been mutually agreed upon between him and the Chief Executive Officer of the Corporation. Attendance at such approved meetings and accomplishment of approved professional duties shall be fully compensated service time and shall not be considered vacation time. The Corporation shall reimburse Herbes for all reasonable expenses incurred by him incident to attendance at approved professional meetings, and such reasonable entertainment expenses incurred by Herbes in furtherance of the Corporation’s interests; provided, however, that such reimbursement is approved by the Chief Executive Officer of the Corporation.
(i) Professional Dues. The Corporation agrees to pay dues and expenses to professional associations and societies and to such community and service organizations of which Herbes is a member provided such dues and expenses are approved by the Chief Executive Officer as being in the best interests of the Corporation.
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(j) Life Insurance. The Corporation shall provide Herbes with life insurance coverage on the same terms as such coverage is provided to all other executive employees of the Corporation.
(k) Business Expenses. The Corporation shall reimburse Herbes for reasonable expenses incurred by him in connection with the conduct of business of the Corporation and its subsidiaries or other Affiliates.
7. Termination Without Cause.
(a) By the Corporation. The Corporation may, in its discretion, terminate Herbes’ employment hereunder without cause at any time upon sixty (60) days prior written notice or at such later time as may be specified in said notice. Except as otherwise provided in this Agreement, after such termination, all rights, duties and obligations of both parties shall cease.
(i) Upon the termination of employment pursuant to subparagraph (a) above, subject to the terms in subparagraph (ii) and Paragraph 9 below and the requirements of Paragraph 10 below, in addition to all accrued and vested benefits payable under the Corporation’s employment and benefit policies, including, but not limited to, unpaid Annual Bonus Awards and any other incentive compensation awards earned under the Annual Bonus Plan or any other incentive compensation plan for any completed performance periods, Herbes shall be provided with the following Salary Continuation and Other Benefits (as defined below) for the duration of the Severance Period (as defined below): (1) salary continuation payments for each year of the Severance Period in an amount per year equal to 135% of his then current annual base salary (“Salary Continuation”), which Salary Continuation shall be paid in the same manner and pursuant to the same payroll procedures that were in effect prior to the effective date of termination; (2) continuation of medical, dental, life insurance and disability insurance for him, his spouse and his dependents, during the Severance Period, as in effect on the effective date of termination (“Other Benefits”), or if the continuation of all or any of the Other Benefits is not available because of his status as a terminated employee, a payment equal to the market value of such excluded Other Benefits; (3) if allowable under the Corporation’s qualified pension plan in effect on the date of termination, credit for additional years of service during the Severance Period; and (4) outplacement services of an independent third party, mutually satisfactory to both parties, until the earlier of one year after the effective date of termination, or until he obtains new employment; the cost for such service will be paid in full by the Corporation. For purposes of this Agreement (except for Paragraph 9 below), the “Severance Period” shall mean the period from the date of termination of employment to the first (1st) anniversary of the date of such termination.
(ii) Subject to Paragraph 10 below, in the event Herbes accepts other employment during the Severance Period, the Corporation shall continue the Salary Continuation in force until the end of the Severance Period. All Other Benefits described in subparagraph (i)(2) and the benefit set forth in (i)(3), other than all accrued and vested benefits payable under the Corporation’s employment and benefit policies, shall cease.
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(iii) Herbes shall not be required to seek or accept any other employment. Rather, the election of whether to seek or accept other employment shall be solely within Herbes’ discretion. If during the Severance Period Herbes is receiving all or any part of the benefits set forth in subparagraph (i) above and he should die, then Salary Continuation remaining during the Severance Period shall be paid fully and completely to his spouse or such individual designated by him or if no such person is designated to his estate.
(b) Release. The obligation of the Corporation to provide the Salary Continuation and Other Benefits described in subparagraph (a) above is contingent upon and subject to the execution and delivery by Herbes of a general release, in form and substance satisfactory to Herbes and the Corporation. The Corporation will provide Herbes with a copy of a general release satisfactory to the Corporation simultaneously with or as soon as administratively practicable following the delivery of the notice of termination provided in Paragraph 7(a), or at or as soon as administratively practicable following the expiration of the Corporation’s right to cure provided in Paragraph 7(d) or Paragraph 9, but not later than twenty-one (21) days before the date payments are required to be begin under Paragraph 7(a). Herbes shall deliver the executed release to the Corporation eight days before the date payments are required to begin under Paragraph 7(a).
Without limiting the foregoing, such general release shall provide that for and in consideration of the above Salary Continuation and Other Benefits, Herbes releases and gives up any and all claims and rights ensuing from his employment and termination with the Corporation, which he may have against the Corporation, a subsidiary or other Affiliate, their respective trustees, officers, managers, employees and agents, arising from or related to his employment and/or termination. This releases all claims, whether based upon federal, state, local or common law, rules or regulations. Such release shall survive the termination or expiration of this Agreement.
(c) Voluntary Termination. Should Herbes in his discretion elect to terminate this Agreement, he shall give the Corporation at least sixty (60) days prior written notice of his decision to terminate. Except as otherwise provided in this Agreement, at the end of the sixty (60) day notice period, all rights, duties and obligations of both parties to the Agreement shall cease, except for any and all accrued and vested benefits under the Corporation’s existing employment and benefit policies, including but not limited to, unpaid incentive compensation awards earned under the Annual Bonus Plan or any other incentive compensation plan for any completed performance periods. At any time during the sixty (60) day notice period, the Corporation may pay Herbes for the compensation owed for said notice period and in any such event Herbes’ employment termination shall be effective as of the date of the payment.
(d) Alteration of Duties. If the Board of Directors of the Corporation or the Chief Executive Officer, in either of their sole discretion, takes action which substantially changes or alters Herbes’ authority or duties so as to effectively prevent him from performing the duties of the Executive Vice President of Operations as defined in this Agreement, or requires that his office be located at and/or principal duties be performed at a location more than forty-five (45) miles from the present Corporation office located in Parsippany, New Jersey, then Herbes may, at his option and upon written notice to the Board of Directors within thirty (30) days after the
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Board’s or Chief Executive Officer’s action, consider himself terminated without cause and entitled to the benefits set forth in Paragraph 7(a), unless within thirty (30) days after delivery of such notice, Herbes’ duties have been restored.
(e) Disability.
(i) The Corporation, in its sole discretion, may terminate Herbes’ employment upon his Total Disability. In the event he is terminated pursuant to this subparagraph, he shall be entitled to the benefits set forth in Paragraph 7(a), provided however, that the annual base salary component of Salary Continuation shall be reduced by any amounts paid to Herbes under any disability benefits plan or insurance policy. For purposes of this Agreement, the term “Total Disability” shall mean death or any physical or mental condition which prevents Herbes from performing his duties under this contract for at least four (4) consecutive months. The determination of whether or not a physical or mental condition would prevent Herbes from the performance of his duties shall be made by the Board of Directors in its discretion. If requested by the Board of Directors, Herbes shall submit to a mental or physical examination by an independent physician selected by the Corporation and reasonably acceptable to him to assist the Board of Directors in its determination, and his acceptance of such physician shall not be unreasonably withheld or delayed. Failure to comply with this request shall prevent him from challenging the Board’s determination.
(f) Retirement. The Corporation, in its sole discretion, may establish a retirement policy for its executive employees, including Herbes, which includes the age for mandatory retirement from employment with the Corporation. Upon the termination of employment pursuant to such retirement policy, all rights and obligations under this Agreement shall cease, except that Herbes shall be entitled to any and all accrued and vested benefits under the Corporation’s existing employment and benefits policies, including but not limited to unpaid incentive compensation awards earned under the Annual Bonus Plan or any other incentive compensation plan for any completed performance periods.
(g) Other Payments. If Herbes is liable for the payment of any excise tax (the “Excise Tax”) pursuant to section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or any successor or like provision, with respect to any payment or property transfers received or to be received under this Agreement or otherwise, the Corporation shall pay Herbes an amount (the “Special Reimbursement”) which, after payment of any federal, state and local taxes, including any further excise tax under Code section 4999, with respect to or resulting from the Special Reimbursement, would place Herbes in the same economic position that he would have enjoyed if the Excise Tax had not applied to such payments. The Special Reimbursement shall be paid as soon as practicable following final determination of the amount of the Excise Tax, but in no event later than the last day of Herbes’ taxable year following the taxable year for which the Excise Tax is due.
8. Termination for Cause. Herbes’ employment under this Agreement may be terminated by the Corporation, immediately upon written notice in the event and only in the event of the following conduct: conviction of a felony or any other crime involving moral turpitude, whether or not relating to Herbes’ employment; habitual unexcused absence from the
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facilities of the Corporation; habitual substance abuse; willful disclosure of material confidential information of the Corporation and/or its subsidiaries or other Affiliates; intentional violation of conflicts of interest policies established by the Board of Directors; wanton or willful failure to comply with the lawful written directions of the Board or other superiors; and willful misconduct or gross negligence that results in damage to the interests of the Corporation and its subsidiaries or other Affiliates. Should any of these situations occur, the Board of Directors and/or the Chief Executive Officer will provide Herbes written notice specifying the effective date of such termination. Upon the effective date of such termination, any and all payments and benefits due Herbes under this Agreement shall cease except for any accrued and vested benefits payable under the Corporation’s employment and benefit policies, including any unpaid amounts owed under the Annual Bonus Plan or any other incentive compensation plan.
9. Major Transaction. If, during the Term, the Corporation consummates a Major Transaction and Herbes is not the Executive Vice President of Operations with duties and responsibilities substantially equivalent to those described herein and/or is not entitled to substantially the same benefits as set forth in this Agreement, then Herbes shall have the right to terminate his employment under this Agreement and shall be entitled to the benefits set forth in Paragraph 7(a), except that the Severance Period shall mean the period from the date of termination of employment to the second (2nd) anniversary of the date of such termination. Herbes shall provide the Corporation with written notice of his desire to terminate his employment under this Agreement pursuant to this Paragraph within ninety (90) days of the effective date of the Major Transaction and the Severance Period shall commence as of the effective date of the termination of this Agreement, provided the Corporation has not corrected the basis for such notice within thirty (30) days after delivery of such notice and further provided that the effective date of termination of this Agreement shall not be more than one year following the effective date of the Major Transaction. For purposes of this Paragraph, “Major Transaction” shall mean the sale of all or substantially all of the assets of the Corporation, or a merger, consolidation, sale of stock or similar transaction or series of related transactions whereby a third party (including a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) acquires beneficial ownership, directly or indirectly, of securities of the Corporation representing over fifty percent (50%) of the combined voting power of the Corporation; provided, however, that a Major Transaction shall not in any event include a direct or indirect public offering of securities of the Corporation, its parent or other Affiliates.
10. Non-Competition. Herbes agrees that during (i) the Term; (ii) the one (1) year period following the effective date of termination of this Agreement by Herbes pursuant to Paragraph 7(c) (Voluntary Termination); and (iii) the one (1) year period following the effective date of termination by the Corporation pursuant to Paragraph 8 (Termination For Cause), he shall not, directly or indirectly, be employed or otherwise engaged to provide services to any food manufacturer operating in the United States of America which is directly competitive with any significant activities conducted by the Corporation or its subsidiaries or other Affiliates whose principal business operations are in the United States of America. Herbes agrees that his entitlement to the benefits set forth in Paragraph 7(a) above is contingent upon his compliance with the requirements of this Paragraph.
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11. Confidentiality of Information. Herbes recognizes and acknowledges that during his employment by the Corporation, he will acquire certain proprietary and confidential information relating to the business of the Corporation and its subsidiaries or other Affiliates (the “Information”). Herbes agrees that during the term of his employment under this Agreement and thereafter, for any reason whatsoever, he shall not, directly or indirectly, except in the proper course of exercising his duties under this Agreement, use for his or another third party’s benefit, disclose, furnish, or make available to any person, association or entity, the Information. In the event of a breach or threatened breach by Herbes of the provisions of this Paragraph, the Corporation shall be entitled to an injunction restraining him from violating the provisions of this Paragraph. Notwithstanding the foregoing, nothing contained herein shall be construed as prohibiting the Corporation from pursuing any other remedies available to it for such breach or threatened breach. For purposes of this Paragraph, “Information” includes any and all verbal or written materials, documents, information, products, recipes, formulas, processes, technologies, programs, trade secrets, customer lists or other data relating to the business, and operations of the Corporation and/or its subsidiaries or other Affiliates.
12. Superseding Agreement. This Agreement constitutes the entire agreement between the parties and contains all the agreements between them with respect to the subject matter hereof. It also supersedes any and all other agreements or contracts, either oral or written, between the parties with respect to the subject matter hereof.
13. Agreement Amendments. Except as otherwise specifically provided, the terms and conditions of this Agreement may be amended at any time by mutual agreement of the parties, provided that before any amendment shall be valid or effective, it shall have been reduced to writing, approved by the Board of Directors or the Compensation Committee of the Board of Directors, and signed by the Chairperson of the Board of Directors, the Chairman of the Compensation Committee or the Chief Executive Officer and Herbes.
14. Invalidity or Unenforceability Provision. The invalidity or unenforceability of any particular provision of this Agreement shall not affect its other provisions and this Agreement shall be construed in all aspects as if such invalid or unenforceable provision had been omitted.
15. Binding Agreement; Assignment. This Agreement shall be binding upon and inure to the benefit of the Corporation and Herbes, their respective successors and permitted assigns. The parties recognize and acknowledge that this Agreement is a contract for the personal services of Herbes and that this Agreement may not be assigned by him nor may the services required of him hereunder be performed by any other person without the prior written consent of the Corporation.
16. Governing Law. This Agreement and any claim, controversy or dispute arising under or related to this Agreement, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties shall be construed and enforced under and in accordance with the laws of the State of New Jersey, without regard to conflicts of law principles. Anything in this Agreement to the contrary notwithstanding, the terms of this Agreement shall be interpreted and applied in a manner consistent with the requirements of Code
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section 409A so as not to subject Herbes to the payment of any tax penalty or interest under such section.
17. Enforcing Compliance. If Herbes needs to retain legal counsel to enforce any of the terms of this Agreement either as a result of noncompliance by the Corporation or a legitimate dispute as to the provisions of the Agreement, then any fees incurred in such expense by Herbes shall be reimbursed wholly and completely by the Corporation if Herbes prevails in such legal proceedings.
18. Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed effective when delivered, if delivered in person, or upon receipt if mailed by overnight courier or by certified or registered mail, postage prepaid, return receipt requested, to the parties at the addresses set forth below, or at such other addresses as the parties may designate by like written notice:
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To the Corporation at: |
B&G Foods, Inc |
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Four Xxxxxxxx Xxxxx |
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Xxxxx 000 |
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Xxxxxxxxxx, XX 00000 |
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Attn: General Counsel |
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To Herbes at: |
his then current address included in the employment records of the Corporation |
19. Other Terms Relating to Code Section 409A. Herbes’ right to Salary Continuation, right to Other Benefits, and right to reimbursements under this Agreement each shall be treated as a right to a series of separate payments under Treasury Regulation section 1.409A-2(b)(2)(iii).
(a) Reimbursements. Any reimbursements made or in-kind benefits provided under this Agreement shall be subject to the following conditions:
(i) The reimbursement of any expense shall be made not later than the last day of Herbes’ taxable year following Herbes’ taxable year in which the expense was incurred (unless this Agreement specifically provides for reimbursement by an earlier date). The right to reimbursement of an expense or payment of an in-kind benefit shall not be subject to liquidation or exchange for another benefit.
(ii) Any reimbursement made under Paragraph 7(a)(i)(2), 7(d), 7(e) or 9 for expenses for medical coverage purchased by Herbes, if made during the period of time Herbes would be entitled (or would, but for such reimbursement, be entitled) to continuation coverage under the Corporation’s medical insurance plan pursuant to COBRA if Herbes had elected such coverage and paid the applicable premiums, shall be exempt from Code section 409A and the six-month delay in payment described below pursuant to Treasury Regulation section 1.409A-1(b)(9)(v)(B).
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(iii) Any reimbursement or payment made under Paragraph 7(a)(i)(2), 7(d), 7(e) or 9 for reasonable expenses for outplacement services for Herbes shall be exempt from Code section 409A and the six-month delay in payment described below pursuant to Treasury Regulation section 1.409A-1(b)(9)(v)(A).
(b) Short-Term Deferrals. It is intended that payments made under this Agreement due to Herbes’ termination of employment that are not otherwise subject to Code section 409A, and which are paid on or before the 15th day of the third month following the end of Herbes’ taxable year in which his termination of employment occurs, shall be exempt from compliance with Code section 409A pursuant to the exemption for short-term deferrals set forth in Treasury Regulation section 1.409A-1(b)(4).
(c) Separation Pay Upon Involuntary Termination of Employment. It is intended that payments made under this Agreement due to Herbes’ involuntary termination of employment under Paragraph 7(a)(i)(2), 7(d), 7(e) or 9 that are not otherwise exempt from compliance with Code section 409A, and which are separation pay described in Treasury Regulation section 1.409A-1(b)(9)(iii), shall be exempt from compliance with Code section 409A to the extent that the aggregate amount does not exceed two times the lesser of (i) Herbes’ annualized compensation for his taxable year preceding the taxable year in which his termination of employment occurs and (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Code section 401(a)(17) for the year in which the termination of employment occurs.
(d) Six-Month Delay. Anything in this Agreement to the contrary notwithstanding, payments to be made under this Agreement upon termination of Herbes’ employment that are subject to Code section 409A (“Covered Payment”) shall be delayed for six months following such termination of employment if Herbes is a “specified employee” on the date of his termination of employment. Any Covered Payment due within such six-month period shall be delayed to the end of such six-month period. The Corporation will increase the Covered Payment to include interest payable on such Covered Payment at the interest rate described below from the date of Herbes’ termination of employment to the date of payment. The interest rate shall be determined as of the date of Herbes’ termination of employment and shall be the rate of interest then most recently published in The Wall Street Journal as the “prime rate” at large U.S. money center banks. The Corporation will pay the adjusted Covered Payment at the beginning of the seventh month following Herbes’ termination of employment. Notwithstanding the foregoing, if calculation of the amounts payable by any payment date specified in this subsection is not administratively practicable due to events beyond the control of Herbes (or Herbes’ beneficiary or estate) and for reasons that are commercially reasonable, payment will be made as soon as administratively practicable in compliance with Code section 409A and the Treasury Regulations thereunder. In the event of Herbes’ death during such six-month period, payment will be made or begin, as the case may be with respect to a particular payment, in the payroll period next following the payroll period in which Herbes’ death occurs.
For purposes of this Agreement, “specified employee” means an employee of the Corporation who satisfies the requirements for being designated a “key employee” under Code section 416(i)(1)(A)(i), (ii) or (iii), without regard to Code section 416(i)(5), at any time during a
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calendar year, in which case such employee shall be considered a specified employee for the twelve-month period beginning on the next succeeding April 1.
[Signatures on Next Page]
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IN WITNESS WHEREOF, the Corporation and Herbes have executed this Agreement as of the day and year first above written.
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B&G FOODS, INC. |
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/s/ Xxxxx X. Xxxxxx |
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Name: Xxxxx X. Xxxxxx |
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Title: President and Chief Executive Officer |
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XXXXXXX X. XXXXXX |
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/s/ Xxxxxxx X. Xxxxxx |
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