Amendment to Employment Agreement between Strouds, Inc. and Thomas S. Paccioretti (March 2001)

Summary

This amendment updates the employment agreement between Strouds, Inc. and Thomas S. Paccioretti, the company's President and CEO. It specifies that Mr. Paccioretti will receive a $90,000 incentive bonus if, during his employment, either the company executes an agreement to sell all or most of its assets under bankruptcy proceedings or files a reorganization plan that allows the business to continue. The bonus is payable upon court approval of such an event. The amendment is agreed to by the company, Mr. Paccioretti, and the Official Committee of Unsecured Creditors.

EX-10.1 2 a2043918zex-10_1.txt EXHIBIT 10.1 EXHIBIT 10.1 AMENDMENT TO EMPLOYMENT AGREEMENT THIS AMENDMENT TO EMPLOYMENT AGREEMENT ("Amendment") is made and entered into as of this 6th day of March 2001 by and between Strouds, Inc. ("Employer") and Thomas S. Paccioretti ("Employee"). WHEREAS, on September 7, 2000, the Employer filed a voluntary petition for relief under chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Case"). WHEREAS, Employer and Employee entered into that certain employment agreement, dated January 5, 2001 (the "Employment Agreement"), pursuant to which the Employer agreed to employ Employee as its President and Chief Executive Officer upon the terms and conditions set forth in the Employment Agreement; WHEREAS, on February 13, 2001, the Official Committee of Unsecured Creditors (the "Committee") appointed in the Bankruptcy Case filed an objection to certain terms and conditions of the Employment Agreement; WHEREAS, the Employer, Employee and Committee desire to resolve the Objection and amend the Employment Agreement on the terms and conditions set forth herein; and NOW THEREFORE, in consideration of the foregoing, the parties hereby agree that paragraph 4 of the Employment Agreement is revised and restated as follows: INCENTIVE BONUS. Employer shall pay to Employee a Ninety Thousand Dollar ($90,000.00) Incentive Bonus if: (a) during the term of this Agreement (including any extensions thereof), (i) an agreement is executed for the sale of all or substantially all of Employer's assets under a sale pursuant to Section 363 of the Bankruptcy Code with one or more buyers or (ii) the Company files a plan of reorganization with the bankruptcy court that provides for emergence of an on-going business from chapter 11 (hereinafter, the occurrence of (i) or (ii) will be referred to as an "Incentive Event"); and (b) at any time the bankruptcy court approves and/or confirms the Incentive Event. IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Employment Agreement as of the day and year first above written. STROUDS, INC. THOMAS S. PACCIORETTI By: /s/ Larry Bemis By: /s/ Thomas S. Paccioretti ---------------------------- -------------------------------- Title: Director Date: 3/5/01 Date: 3/6/01 ------------------------------- ---------------------------- NO OBJECTION BY: THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS By: /s/ Scott Hazan ----------------------------- Name: Scott Hazan Otterbourg, Steindler, Houston & Rosen, P.C. Attorneys for the Official Committee of Unsecured Creditors Date: March 9, 2001 ----------------------------- 2