EXHIBIT 10.38
FARM FRESH, INC.
EXECUTIVE EMPLOYMENT AND SEVERANCE AGREEMENT
THIS AGREEMENT is made in the City of Norfolk, Virginia, effective
______________, 1997, by and between FARM FRESH, INC., a corporation organized
under the laws of the Commonwealth of Virginia, having its principal office in
Norfolk, Virginia (the "Corporation"), and ___________________, a resident of
Virginia (the "Executive").
WHEREAS, the Executive has experience and knowledge in the affairs of
the Corporation, and his services are key to the continued successful
management of the Corporation; and
WHEREAS, the Corporation desires to retain the services and business
counsel of the Executive and to induce the Executive to remain in his executive
capacity with the Corporation.
NOW, THEREFORE, to accomplish the foregoing objective, the Corporation
and the Executive hereby agree as follows:
1. Employment. Upon the terms and subject to the conditions contained
herein, during the Employment Term (as hereinafter defined), the Corporation
hereby employs Executive as [INSERT JOB TITLE] of the Corporation. Executive
shall be responsible for such duties as are commensurate with his office and as
may from time to time be assigned to Executive by the Board of Directors and the
President of the Corporation. Executive hereby accepts such employment and,
during the Employment Term, shall devote his full business time, skill, energy
and attention to the business of the Corporation, and shall perform his duties
in a diligent, trustworthy, loyal, businesslike and efficient manner, all for
the purpose of advancing the business of the Corporation.
2. Compensation. During the Employment Term, the Corporation
shall pay, and Executive shall be entitled to receive from the Corporation,
such compensation as may be established from time to time by the Board of
Directors of the Corporation in the exercise of its sole discretion.
3. Term and Termination. The Employment Term shall commence on the
date hereof and shall continue thereafter until terminated as herein provided.
Either party may terminate the Employment Term for any reason provided that it
has given the other party at least thirty (30) days advance written notice of
its intent to terminate. In addition, the Corporation shall have the right to
terminate the Employment Term at any time with or without notice for Cause (as
hereinafter defined) or in the event Executive suffers an illness or incapacity
of such character that it has or will likely substantially disable him from
performing his duties hereunder for a period of more than ninety (90)
consecutive days (herein, a "Disability"). Furthermore, the Employment Term
shall terminate immediately upon the death of Executive. Notwithstanding
anything to the contrary set forth in this Agreement, Executive's obligations
and covenants set forth in Sections 5 and 6 hereof shall survive the termination
of this Agreement.
4. Severance.
(a) General. The Executive shall be entitled to receive
Severance (as hereinafter defined) according to the remaining provisions of this
section if a Change of Control occurs during the Employment Term or within three
months following the expiration of the Employment Term. Except as expressly
provided above, no Severance shall be payable to the Executive. If Executive is
entitled to such Severance, Severance shall be the exclusive remedy of Executive
in the event of early termination of the Employment Term as herein provided and
shall be in lieu of any other claim for damages related to early termination.
(b) Severance.
(i) "Severance" shall equal the Executive's Base Period Income (as
hereinafter defined) and shall be paid in six (6) equal consecutive monthly
installments. Severance payable to the Executive hereunder shall commence on the
later of the fifteenth business day after the Executive's employment termination
date or the first day of the month following the Executive's employment
termination date. At the Corporation's sole discretion, however, Severance
payments may be commenced on an earlier date. Severance is subject to reduction
according to Section 4(g). If Executive dies after the commencement of
Severance, Executive's estate shall be entitled to the balance of any and all
payments thereafter.
(c) Change of Control. "Change of Control" shall mean the
occurrence of any of the following:
(i)any person, including a "group" as defined in
Section 13(d)(3) of the Securities Exchange Act of 1934, other than Citicorp
Venture Capital, Ltd. or entities under its common control, shall acquire more
than fifty (50) percent of the voting control of the Corporation or its parent
corporation, FF Holdings Corporation ("Holdings"); or
(ii)the sale of substantially all of the assets of the
Corporation.
For purposes of this Agreement, a Control of Change is deemed to occur
on the date on which an event described in (i) or (ii) above occurs. If a Change
in Control occurs on account of a series of transactions, the date on which a
Change of Control is deemed to occur is the date of the last such transaction.
(d)Base Period Income. The Executive's "Base Period Income" shall
equal the Executive's base salary during the six (6) calendar month period
immediately preceding the date of notice of termination.
(e)Severance Reductions. If any payments which the Executive has
the right to receive from the Corporation (including Severance payments) or any
affiliated entity or any payments or benefits under any plan maintained by the
Corporation or an affiliated entity would otherwise constitute an "excess
parachute payment" (as defined in Internal Revenue Code Section 280G), Severance
payments must be reduced pro-rata (but not below zero) to the largest amount
that will result in no portion of any such payment being subject to the excise
tax imposed by Internal Revenue Code Section 4999. The determination of any
reduction pursuant to this subsection must be made by the Corporation in good
faith, before any such payments are due and payable to the Executive.
5.Confidentiality. Executive shall not (except as authorized by the
Board of Directors of the Corporation or as required in the scope of his
employment) during the term of his employment or at any time thereafter disclose
to any person, firm or company any information relating to the organization,
business or finances of the Corporation or any of its customers, agents or
suppliers, or any of its trade secrets or details of any dealings, transactions
or affairs of which he is or may become aware during his employment hereunder.
Executive shall keep absolutely confidential all such matters entrusted to him,
and he shall not use, nor attempt to use, nor permit others to use, any such
information in any manner which may injure or cause loss whether directly or
indirectly to the Corporation.
6.Proprietary Information. Any notes or memoranda or copies thereof
made by Executive during the term of his employment with the Corporation or at
any time thereafter relating to any matter within the scope of the business of
the Corporation or concerning any of its dealings, transactions or affairs shall
be the property of the Corporation. Executive shall not, either during the term
of his employment or at any time thereafter, use or permit others to use any
such notes or memoranda or copies thereof other than for the benefit of the
Corporation. Upon request by the Board of Directors of the Corporation,
Executive shall immediately return any and all such notes and memoranda and
copies thereof to the Corporation.
7.Assignability. The right of the Executive or any other person to the
payment of compensation or other benefits under this Agreement shall not be
assigned, transferred, pledged or encumbered except by will or by the laws of
descent and distribution.
8.Notices. All notices which may be required or given hereunder shall
be in writing addressed to the respective addresses of the parties hereto as
shown below, posted in the U.S. mail by certified or registered mail, or hand
delivered.
As to Corporation: Farm Fresh, Inc.
0000 Xxxxxxxxx Xxxxx
Xxxxxxx, XX 00000
Attention: President
As to Executive: ----------------------
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9.Binding Effect. All the terms of this Agreement shall be binding upon
and inure to the benefit of, and be enforceable by, the respective heirs and
legal representatives and the successors and permitted assigns of the
Corporation and the Executive.
10.Governing Law. This Agreement shall be interpreted, construed and
enforced in accordance with the laws of the Commonwealth of Virginia.
11.Jurisdiction. Executive and the Corporation irrevocably submit to
the jurisdiction of the Circuit Court of Norfolk, Virginia in any action or
proceeding arising out of, or relating to, this Agreement, and hereby
irrevocably agree that all claims in respect of any such action or proceeding
may be heard and determined in such courts. Executive and the Corporation agree
that a final judgment in any action or proceeding shall, to the extent permitted
by applicable law, be conclusive and may be enforced in other jurisdictions by
suit on the judgment, or in any other manner provided for by applicable law
related to the enforcement of judgments except that nothing shall restrict a
party's right to appeal the decision in any action or proceeding.
12.Prior Agreements. This Agreement supersedes all prior arrangements,
understandings, letters of intent, conversations and negotiations between the
parties with respect to the subject matter of this Agreement and shall, together
with any other contemporaneously executed agreement between the parties,
constitute the entire agreement between the parties with respect to the matters
mentioned in this Agreement.
13.Amendment. Neither this Agreement nor any term or provision thereof
may be changed, waived, discharged or terminated orally, or in any manner other
than by an instrument in writing signed by the party against which the
enforcement of this change, waiver, discharge or termination is sought.
14.Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original but all of which shall
be deemed one and the same instrument.
15.Severability. If for any reason any provision of this Agreement is
declared invalid, void, or unenforceable by a court of competent subject matter
and personal jurisdiction, the validity and binding effect of any remaining
provision of this Agreement shall remain in full force and effect as if this
Agreement had been executed with the invalid, void or unenforceable provision
eliminated.
00.Xxxxxxxxxxxx of Headings. The captions or headings are for
convenience only and are not intended to limit or define the scope or effect of
any provision of this Agreement.
WITNESS the following signatures as of the date first above written.
FARM FRESH, INC.
By:
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Title:
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EXECUTIVE:
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