<SEC-DOCUMENT>0001193125-15-264163.txt : 20150727
<SEC-HEADER>0001193125-15-264163.hdr.sgml : 20150727
<ACCEPTANCE-DATETIME>20150727170334
ACCESSION NUMBER:		0001193125-15-264163
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20150721
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20150727
DATE AS OF CHANGE:		20150727

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CALAVO GROWERS INC
		CENTRAL INDEX KEY:			0001133470
		STANDARD INDUSTRIAL CLASSIFICATION:	AGRICULTURE SERVICES [0700]
		IRS NUMBER:				330945304
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-33385
		FILM NUMBER:		151007653

	BUSINESS ADDRESS:	
		STREET 1:		2530 RED HILL AVE.
		CITY:			SANTA ANA
		STATE:			CA
		ZIP:			92705
		BUSINESS PHONE:		9098334200
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d40593d8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML><HEAD>
<TITLE>Form 8-K</TITLE>
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 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P> <P STYLE="font-size:20pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:16pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM <FONT
STYLE="white-space:nowrap">8-K</FONT> </B></P> <P STYLE="margin-top:16pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>CURRENT REPORT </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant to Section&nbsp;13 or 15(d) of </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center"><B>the Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:16pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center">Date of Report (Date of earliest event reported): <B>July&nbsp;21, 2015</B> </P>
<P STYLE="font-size:22pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:16pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>CALAVO GROWERS, INC. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center">(Exact name of registrant as specified in its charter) </P> <P STYLE="font-size:14pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><B><U>California</U></B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B><U>000-33385</U></B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B><U>33-0945304</U></B></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center">(State or other jurisdiction</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:11pt; font-family:Times New Roman" ALIGN="center">of&nbsp;incorporation)</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">(Commission File Number)</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center">(IRS Employer</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:11pt; font-family:Times New Roman" ALIGN="center">Identification No.)</P></TD></TR>
</TABLE> <P STYLE="margin-top:16pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center"><B>1141A Cummings Road, Santa Paula, CA 93060 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center">(Address of principal executive offices, including zip code) </P>
<P STYLE="margin-top:16pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center"><B>(805) 525-1245 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center">(Registrant&#146;s telephone number, including area code) </P>
<P STYLE="margin-top:16pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center"><B>N/A </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center">(Former name or former
address, if changed since last report) </P> <P STYLE="margin-top:20pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation
of the registrant under any of the following provisions (see General Instruction A.2. below): </P> <P STYLE="font-size:8pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">[&nbsp;&nbsp;&nbsp;]</TD>
<TD ALIGN="left" VALIGN="top">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </TD></TR></TABLE> <P STYLE="font-size:8pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:11pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">[&nbsp;&nbsp;&nbsp;]</TD>
<TD ALIGN="left" VALIGN="top">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </TD></TR></TABLE> <P STYLE="font-size:8pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:11pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">[&nbsp;&nbsp;&nbsp;]</TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </TD></TR></TABLE> <P STYLE="font-size:8pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:11pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">[&nbsp;&nbsp;&nbsp;]</TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </TD></TR></TABLE> <P STYLE="font-size:16pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman"><B>Item&nbsp;5.02.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. </B></P> <P STYLE="margin-top:16pt; margin-bottom:0pt; text-indent:7%; font-size:11pt; font-family:Times New Roman">Calavo Growers, Inc. (&#147;Calavo&#148;)
and B. John Lindeman have entered into an Employment Agreement dated as of July&nbsp;21, 2015 (the &#147;Employment Agreement&#148;). Pursuant to the Employment Agreement, which was approved by Calavo&#146;s Compensation Committee and Board of
Directors, Mr.&nbsp;Lindeman will serve as Calavo&#146;s Chief Financial Officer effective August&nbsp;1, 2015. Mr.&nbsp;Lindeman will report to Calavo&#146;s Chief Executive Officer, Lecil E. Cole, and to Calavo&#146;s President and Chief Operating
Officer, Kenneth Catchot. </P> <P STYLE="margin-top:16pt; margin-bottom:0pt; text-indent:7%; font-size:11pt; font-family:Times New Roman">Mr.&nbsp;Lindeman succeeds Arthur J. Bruno, who retired as Calavo&#146;s Chief Financial Officer on
June&nbsp;15, 2015. Since August 2009, Mr.&nbsp;Lindeman served as a Managing Director and Co-Head of the Consumer&nbsp;&amp; Retail Investment Banking Group of Janney Montgomery Scott LLC. </P>
<P STYLE="margin-top:16pt; margin-bottom:0pt; text-indent:7%; font-size:11pt; font-family:Times New Roman">The following are material terms of the Employment Agreement: </P> <P STYLE="font-size:16pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:11pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#9679;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Mr.&nbsp;Lindeman will receive an annual base salary of $300,000, which is subject to being increased on an annual basis in the discretion of Calavo&#146;s Compensation Committee. </TD></TR></TABLE>
<P STYLE="font-size:8pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:11pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#9679;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">With respect to each of Calavo&#146;s fiscal years beginning with the 2016 fiscal year, Mr.&nbsp;Lindeman will be eligible to receive a performance bonus pursuant to Calavo&#146;s Management Incentive Plan in accordance
with performance targets, thresholds and requirements to be established by Calavo&#146;s Compensation Committee for Calavo&#146;s executive officers. </TD></TR></TABLE> <P STYLE="font-size:8pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:11pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#9679;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Mr.&nbsp;Lindeman will receive a signing bonus of $100,000 in cash, $50,000 of which is payable upon commencement of the term of employment and $50,000 of which is payable at the time that Calavo&#146;s other executive
officers receive their bonuses for the 2015 fiscal year. </TD></TR></TABLE> <P STYLE="font-size:8pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:11pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#9679;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Mr.&nbsp;Lindeman will also receive a signing bonus of restricted shares of Calavo common stock having a value of $300,000, with such shares to vest in three equal annual installments subject to the requirement that
Mr.&nbsp;Lindeman must remain in Calavo&#146;s employment. </TD></TR></TABLE> <P STYLE="font-size:8pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:11pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#9679;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Calavo will reimburse Mr.&nbsp;Lindeman for up to $100,000 of his relocation expenses. </TD></TR></TABLE> <P STYLE="font-size:8pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:11pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#9679;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">If Calavo terminates Mr.&nbsp;Lindeman&#146;s employment without cause or if Mr.&nbsp;Lindeman terminates his employment for good reason, as such terms are defined in the Employment Agreement, Mr.&nbsp;Lindeman&#146;s
restricted shares will vest and Mr.&nbsp;Lindeman will be entitled to receive one year of base salary and a pro rata portion of his annual performance bonus for the year in which his employment terminates. </TD></TR></TABLE>
<P STYLE="margin-top:8pt; margin-bottom:0pt; text-indent:7%; font-size:11pt; font-family:Times New Roman">The preceding summary of the Employment Agreement does not purport to be complete and is subject to and qualified in its entirety by the
complete text of the Employment Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and which is incorporated by reference into this Item 5.02. </P>
<P STYLE="margin-top:16pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman"><B>Item&nbsp;9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits. </B></P>
<P STYLE="font-size:14pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top"><U>Exhibit No.</U></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><U>Description</U></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="10"></TD>
<TD HEIGHT="10" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Employment Agreement dated as of July 21, 2015 between Calavo Growers, Inc. and B. John Lindeman.</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center">1 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center"><B>SIGNATURES</B></P>
<P STYLE="margin-top:14pt; margin-bottom:0pt; text-indent:7%; font-size:11pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized. </P> <P STYLE="font-size:14pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top">Date: July&nbsp;24, 2015</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" COLSPAN="3"><B>CALAVO GROWERS, INC.</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="19"></TD>
<TD HEIGHT="19" COLSPAN="2"></TD>
<TD HEIGHT="19" COLSPAN="2"></TD>
<TD HEIGHT="19" COLSPAN="2"></TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">&nbsp;By:&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"><U>/s/ Lecil E.
Cole&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Lecil E. Cole</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman">Chairman of the Board of Directors and</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:11pt; font-family:Times New Roman">Chief
Executive Officer</P></TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:11pt; font-family:Times New Roman" ALIGN="center">2 </P>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>d40593dex101.htm
<DESCRIPTION>EX-10.1
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<HTML><HEAD>
<TITLE>EX-10.1</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><U>EMPLOYMENT AGREEMENT </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman">This Employment Agreement (this &#147;<B><U>Agreement</U></B>&#148;) is entered into as of July 21, 2015, by and between Calavo Growers, Inc.,
a California corporation (the &#147;<B><U>Employer</U></B>&#148;), and B. John Lindeman (the &#147;<B><U>Employee</U></B>&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>RECITAL </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman">The Employer
desires to employ the Employee as the Employer&#146;s Chief Financial Officer, and the Employee desires to accept such employment, upon the terms set forth in this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman">NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, the Employer and the Employee hereby agree as follows: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>1.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>EMPLOYMENT</U></B>. <B> </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(a)</B> <B><U>Term of Employment</U></B>. The Employer
hereby employs the Employee, and the Employee hereby accepts employment with the Employer (&#147;<B><U>Employment</U></B>&#148;), in accordance with the terms and conditions of this Agreement. The term of the Employee&#146;s Employment under this
Agreement (the &#147;<B><U>Term of Employment</U></B>&#148;) shall commence on August&nbsp;1, 2015. The Term of Employment shall end on the Employment termination date that is specified in writing by either the Employer or the Employee to the other
party. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(b) <U>At Will Employment</U></B>. The Employer has the right to terminate the Employee&#146;s Employment at any time, with or
without prior notice, and with or without cause and for any reason or for no specified reason. The Employee has the right to terminate his Employment at any time, with or without prior notice. The Employee is employed by the Employer &#147;at
will,&#148; and this Agreement does not provide the Employee with any right to continue in the Employment of the Employer for any minimum or specified period. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
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<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>2.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>POSITION, DUTIES, AUTHORITY AND EXCLUSIVITY OF SERVICES</U></B>. <B> </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(a)
<U>Position</U></B>. During the Term of Employment, the Employee shall serve as the Employer&#146;s Chief Financial Officer (or such other title as the parties may mutually agree upon from time to time). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(b) <U>Reporting</U></B>. The Employee shall report on a day-to-day basis directly to, and shall be subject to the supervision and
direction of, the Employer&#146;s Chief Executive Officer (who is presently Lecil E. Cole) and the Employer&#146;s President (who is presently Kenneth Catchot). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(c) <U>Duties, Responsibilities and Authority</U></B>. The Employee&#146;s duties, responsibilities and authority shall consist of the
duties of Chief Financial Officer, as determined by the Chief Executive Officer, the President or the Board of Directors of the Employer. The Employee shall be responsible for diligently and competently performing all services and acts that are
necessary or advisable to fulfill those duties and responsibilities and shall render such </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><FONT
STYLE="font-family:Times New Roman; font-size:12pt">1</FONT><FONT STYLE="font-family:Times New Roman; font-size:10pt"> </FONT></P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">
services on the terms set forth in this Agreement. The Employee shall at all times be subject to, observe and carry out such reasonable employment-related rules, regulations and policies as the
Employer&#146;s Board of Directors, Chief Executive Officer or President may from time to time establish for the Employer&#146;s employees, including, without limitation, the Employer&#146;s Employee Handbook, Insider Trading Policy and Code of
Business Conduct and Ethics. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(d) <U>Principal Business Office</U></B>. Without restricting any requirement that the Employee engage
in reasonable business-related travel, the principal location in which the Employee shall be required to perform his duties and responsibilities shall be the Employer&#146;s Corporate Headquarters, which are presently located at 1141A Cummings Road,
Santa Paula, California 93060. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(e) <U>Exclusivity of Services</U></B>. Except for sick leave and other forms of leave that are
permitted under the Employer&#146;s rules, regulations and policies and except for the paid vacation time or paid time off to which Employee may be entitled, the Employee shall, throughout the Term of Employment, devote substantially all of his
attention and time during the Employer&#146;s normal business hours to serving in the position described in this Agreement and to the performance of his duties and responsibilities in good faith and to the best of his ability. So long as the
Employee does not violate any of the confidentiality, noncompetition or unfair competition provisions of this Agreement or fail to perform his duties and responsibilities under this Agreement, the Employee shall be permitted reasonable time to make
and manage his personal business investments and to serve on civic, educational and charitable boards and committees. The Employee shall not serve on the board of directors of any for-profit entity without the prior written consent of the
Employer&#146;s Chief Executive Officer. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>3.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>COMPENSATION</U></B>. <B> </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(a) <U>Base Salary</U></B>. For services rendered
during the Term of Employment, the Employer shall pay to the Employee an annual base salary (the &#147;<U><B>Base Salary</B></U>&#148;) of not less than $300,000, payable in regular installments in accordance with the Employer&#146;s customary
payroll practices for employees. If the Employee is entitled to receive Base Salary for any period that is less than one calendar month, the Base Salary for such period shall be computed by prorating the annual Base Salary over such period based
upon the actual number of days therein. The Employer&#146;s Compensation Committee shall determine on an annual basis whether an increase in the Employee&#146;s Base Salary is justified. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(b) <U>Annual Bonus</U></B>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:15%; font-size:12pt; font-family:Times New Roman">(i) With respect to each of the Employer&#146;s fiscal years during the Term of Employment beginning with the 2016 fiscal year, the Employee
shall be eligible to receive an annual performance bonus (the &#147;<U><B>Annual Bonus</B></U>&#148;) to be determined annually by the Employer&#146;s Compensation Committee in connection with its determination of performance-based bonuses and
performance targets, thresholds and requirements for other executive officers pursuant to the Employer&#146;s Management Incentive Plan (&#147;<U><B>MIP</B></U>&#148;), as the MIP may be amended from time to time. In addition, with respect to each
of the Employer&#146;s fiscal years during the Term of Employment beginning with the 2016 fiscal year, the Compensation Committee may elect to award the Employee a discretionary bonus. The Employee shall not be eligible to receive
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><FONT
STYLE="font-family:Times New Roman; font-size:12pt">2</FONT><FONT STYLE="font-family:Times New Roman; font-size:10pt"> </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">
an Annual Bonus or a discretionary bonus under this paragraph with respect to the Employer&#146;s 2015 fiscal year in light of the Signing Bonus that the Employer has agreed to pay to the
Employee pursuant to Section&nbsp;3(c) of this Agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:15%; font-size:12pt; font-family:Times New Roman">(ii) The Employee acknowledges that the Compensation Committee may award
bonuses to him in stock and/or cash. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:15%; font-size:12pt; font-family:Times New Roman">(iii) Performance-based bonuses for which the Employee is eligible under the MIP upon the
achievement of bonus targets and performance requirements established by the Compensation Committee shall be in the range established for the Employer&#146;s previous Chief Financial Officer for services rendered in such capacity, as compared to
bonus targets and performance requirements established for the Employer&#146;s other executive officers. However, the bonuses and bonus targets for which the Employee is eligible may be lower than those received by the previous Chief Financial
Officer because the previous Chief Financial Officer also served as the Employer&#146;s Chief Operating Officer. The Employee acknowledges and agrees that, as the size of the Employer increases, annual bonus thresholds and performance requirements
under the MIP may be increased by the Compensation Committee for all of the Employer&#146;s executive officers, including for the Employee. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(c) <U>Signing Bonus</U></B>.<B> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:15%; font-size:12pt; font-family:Times New Roman">(i) The Employee shall be eligible to receive a signing bonus of $100,000 in cash and $300,000 in equity (the &#147;<U><B>Signing
Bonus</B></U>&#148;) as follows. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:15%; font-size:12pt; font-family:Times New Roman">(ii) Upon commencement of the Term of Employment, the Employee shall receive an initial payment of
$50,000 (the &#147;<U><B>Initial Payment</B></U>&#148;). If the Employee terminates his employment without Good Reason or is terminated by the Employer for Cause (as those terms are defined in this Agreement) within ninety days after commencement of
the Term of Employment, the Employee shall be required to repay the Initial Payment to the Employer. The Employee shall receive a second payment of $50,000 at the time that the Employer&#146;s other executives receive their Annual Bonuses for the
2015 fiscal year pursuant to the MIP, provided that the Employee has not terminated his Employment without Good Reason or been terminated with Cause, as those terms are defined in this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:15%; font-size:12pt; font-family:Times New Roman">(iii) Within ten days after the commencement of the Term of Employment, the Employee shall be awarded restricted shares of the
Employer&#146;s common stock having a value of $300,000 based on the closing price of the Employer&#146;s stock on the date of the award. The shares will vest in three equal annual installments, subject to the requirement that the Employee must be
employed with the Employer at the time the shares are to vest. Notwithstanding the foregoing, the shares will vest immediately if the Employee has terminated his Employment with Good Reason or the Employer has terminated the Employee&#146;s
Employment without Cause, as those terms are defined in this Agreement. The parties hereto shall sign a restricted stock agreement governing the shares issued to the Employee. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(d) <U>Change in Control</U></B>. In the event that a Change in Control, as defined in the MIP, occurs during the Term of Employment or
during any other period contemplated by this Agreement, then the effect upon any compensation paid to the Employee under the MIP shall be governed in accordance with section 13.2 of the MIP. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><FONT
STYLE="font-family:Times New Roman; font-size:12pt">3</FONT><FONT STYLE="font-family:Times New Roman; font-size:10pt"> </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(e) <U>Withholding</U></B>. The Signing Bonus and all Base Salary, Annual Bonuses and other
payments to be made to the Employee under this Agreement are subject to the Employer&#146;s right to make customary and applicable deductions and withholdings, including, without limitation, for federal and state taxes, FICA, Medicaid and other
customary payroll activities. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(f) <U>Clawback Provisions</U></B>. Notwithstanding any other provisions in this Agreement to the
contrary, any incentive-based compensation, or any other compensation, paid to the Employee pursuant to this Agreement or any other agreement or arrangement with the Employer which is subject to recovery under any law, government regulation or stock
exchange listing requirement will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by the Employer pursuant to any such
law, government regulation or stock exchange listing requirement, including but not limited to the MIP). The Employer will make any determination for clawback or recovery in its sole discretion and in accordance with its determination of any
applicable law or regulation. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(g) <U>Equity Interests in the Employer</U></B>. The Employee acknowledges and agrees that, except as
set forth in this Agreement, the Employer has not made any representations or promises to him regarding his receipt of (1)&nbsp;stock options or other rights to acquire shares of the Employer&#146;s common stock under an employee stock plan or
otherwise or (2)&nbsp;equity interests in the Employer, and that nothing in this Agreement entitles him to any such stock options, shares or other equity interests except as provided herein. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>4.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>RELOCATION EXPENSES, EMPLOYEE BENEFITS, EXPENSE REIMBURSEMENT AND INDEMNIFICATION</U></B>. <B> </B></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(a) <U>Relocation Expenses</U></B>. The Employer shall reimburse the Employee up to $100,000 (the &#147;<U><B>Relocation
Cap</B></U>&#148;) for all reasonable relocation expenses incurred by the Employee relating to his relocation to Southern California provided that the Employee provides appropriate documentation of such expenses. Such reimbursable relocation
expenses shall include, without limitation: expenses associated with packing and unpacking personal property; expenses associated with moving personal property such as home contents, a piano and automobiles; travel expenses such as airfare, hotels
and meals incurred on one home buying trip to Southern California; temporary housing and storage expenses; closing costs (including real estate commissions and legal fees) incurred in connection with selling the Employee&#146;s current primary
residence and purchasing a new primary residence in Southern California; and travel expenses incurred to relocating the Employee&#146;s family to Southern California. In addition, the Employer shall make &#147;gross-up payments&#148; to the
Employee, subject to the Relocation Cap, that shall reimburse the Employee for estimated federal, state, local and FICA tax liabilities that he incurs if and to the extent that the reimbursements from the Employer described in the preceding two
sentences are treated as taxable income. If the Employee terminates his employment without Good Reason or is terminated by the Employer for Cause (as those terms are defined in this Agreement) prior to the ninetieth day after commencement of the
Term of Employment, the Employee shall be required to repay the Employer the gross amount of any relocation expenses reimbursed pursuant to this paragraph. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><FONT
STYLE="font-family:Times New Roman; font-size:12pt">4</FONT><FONT STYLE="font-family:Times New Roman; font-size:10pt"> </FONT></P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(b) <U>Employee Benefits</U></B>. During the Term of Employment, the Employee shall be
entitled to receive all benefits under any and all deferred compensation plans, retirement plans, life, disability, health, accident and other insurance programs, automobile allowances, and similar employee benefit plans and programs, sick leave,
vacation time and paid time off (if any) that the Employer elects in its sole discretion to provide from time to time to its other executive officers (collectively referred to herein as the &#147;<U><B>Benefits</B></U>&#148;). However, the Employer
reserves the right to terminate, reduce or otherwise amend any or all of the Benefits from time to time to the extent allowed by law, so long as such action applies generally to all of its executive officers. Except as otherwise required by
applicable law with respect to continued &#147;COBRA&#148; group health care coverage and except as expressly required by the terms of the Employer&#146;s life, disability, health, accident and other insurance programs and similar employee benefit
plans and programs, the Employee&#146;s right to receive Benefits shall terminate upon the termination of his Employment for any reason. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(c) <U>Business Expense Reimbursement</U></B>. Provided that the Employee provides appropriate documentation of his expenses, the Employee
shall be entitled to receive full reimbursement for all reasonable out-of-pocket business expenses that are incurred by him during the Term of Employment in accordance with the policies and procedures established from time to time by the Employer.
The Employee&#146;s rights under this paragraph shall terminate as of the date that his Employment terminates for any reason, provided that the Employer shall remain obligated to reimburse the Employee for any such expenses that were properly
incurred by his during the Term of Employment. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(d) <U>Indemnification</U></B>. In the event that the Employee is made a party or
threatened to be made a party to any action, suit, or proceeding, whether civil, criminal, administrative or investigative (a &#147;<U><B>Proceeding</B></U>&#148;), by reason of the fact that the Employee is or was a director or officer of the
Employer, or any affiliate of the Employer, or is or was serving at the request of the Employer as a director, officer, member, employee or agent of another corporation or a partnership, joint venture, trust or other enterprise, the Employee shall
be indemnified and held harmless by the Employer to the maximum extent permitted under applicable law and the Company&#146;s bylaws from and against any liabilities, costs, claims and expenses, including all costs and expenses incurred in defense of
any Proceeding (including attorneys&#146; fees). The Employer&#146;s obligations under this paragraph shall survive the termination of the Employee&#146;s Employment. Notwithstanding the foregoing, this paragraph shall not apply to any Proceeding,
contest or dispute between the Employer or any of its affiliates and the Employee. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>5.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>POST-EMPLOYMENT COMPENSATION</U></B>. <B> </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(a) <U>General</U></B>. Except as
specifically provided in this Agreement, the Employer shall have no obligation to make any compensation, severance or other payments to the Employee, or to provide any other benefits to the Employee, after the date of the termination of the
Employee&#146;s Employment for any reason. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><FONT
STYLE="font-family:Times New Roman; font-size:12pt">5</FONT><FONT STYLE="font-family:Times New Roman; font-size:10pt"> </FONT></P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(b) <U>Base Salary</U></B><B></B>.<B></B> Upon the termination of the Employee&#146;s
Employment for any reason, the Employee shall not be entitled to receive any additional Base Salary payments from the Employer except: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:15%; font-size:12pt; font-family:Times New Roman">(i) The Employee shall have the right to receive any earned but unpaid Base Salary and, to the extent required by law, accrued vacation pay
or accrued paid time off, as of the date of the Employment termination; and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:15%; font-size:12pt; font-family:Times New Roman">(ii) If the Employer terminates the Employee&#146;s
Employment without Cause (as defined in this Agreement), or if the Employee terminates his Employment for Good Reason (as defined in this Agreement), then, provided that the Employee executes a full general release in favor of the Employer and those
acting on its behalf in a form acceptable to the Employer, the Employer shall: (1)&nbsp;pay the Employee an amount equal to one year of his annual Base Salary, payable at regular payroll intervals; (2)&nbsp;make COBRA payments on behalf of the
Employee in an amount sufficient for the Employee to maintain his then-current group health benefits for one year; and (3)&nbsp;provide the Employee with a pro rata portion of his Annual Bonus for the year in which his Employment terminates, payable
at the time that the Employer&#146;s other executive officers receive their Annual Bonuses. The payments and benefits described in this paragraph shall be subject to the Employer&#146;s right to make customary and applicable deductions and
withholdings, including, without limitation, for federal and state taxes, FICA, Medicaid and other customary payroll activities. The Employee shall not be entitled to receive the payments and benefits described in this paragraph if the Employer
terminates the Employee&#146;s Employment for Cause or if he terminates his Employment other than for Good Reason. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:15%; font-size:12pt; font-family:Times New Roman">(iii) For purposes of
this Agreement, &#147;<U><B>Cause</B></U>&#148; means: (1)&nbsp;willful misconduct by the Employee with respect to the Employer that has a material adverse effect on the Employer and which misconduct is not cured within ten days after written notice
of such misconduct is given by the Employer to the Employee, if such misconduct is curable; (2)&nbsp;the Employee&#146;s willful refusal to attempt to follow any proper written direction of the Chief Executive Officer or the President unless the
Employee has a good faith reason to believe that such direction is illegal or is a violation of the Employer&#146;s rules, regulations and policies, which refusal shall continue for a period of at least ten days after written notice of such refusal
is given by the Employer to the Employee; (3)&nbsp;the substantial and continuing refusal by the Employee to attempt to perform his duties required under this Agreement after written notice of demand for performance of such duties is delivered to
the Employee by the Employer (which notice must specifically identify the manner in which the Employer believes the Employee has substantially and continually refused to attempt to perform his duties under this Agreement) and after the Employee has
failed to cure such refusal to attempt to perform his duties for at least ten days after his receipt of such notice; (4)&nbsp;the Employee&#146;s conviction of, or entry of a plea of guilty or nolo contendere to, a felony (other than a felony
involving a traffic violation); (5)&nbsp;the Employee&#146;s theft, embezzlement or other criminal misappropriation of funds from the Employer; or (6)&nbsp;the Employee&#146;s willful breach of any other material provision of this Agreement or of
the Employer&#146;s Employee Handbook, Insider Trading Policy or Code of Business Conduct and Ethics. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:15%; font-size:12pt; font-family:Times New Roman">(iv) For purposes of this
Agreement, &#147;<U><B>Good Reason</B></U>&#148; means the occurrence, without the Employee&#146;s written consent, of any of the following: (1)&nbsp;a change in the </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">6 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">
Employee&#146;s duties requiring him to perform the majority of his hours of employment more than 35 miles from the Employer&#146;s Corporate Headquarters, if the Employer fails to remedy such
change within thirty days after written notice is given by the Employee to the Employer; (2)&nbsp;a material reduction by the Employer in the Employee&#146;s title, duties, responsibilities or authority under this Agreement, which reduction is not
cured by the Employer within thirty days after written notice is given by the Employee to the Employer, excluding, however, any such reduction that occurs in connection with a termination of the Employee&#146;s Employment for Cause, (3)&nbsp;any
breach by the Employer of any material provision of this Agreement, which breach is not cured by the Employer within thirty days after written notice of such breach is given by the Employee to the Employer; or (4)&nbsp;the failure of any successor
to the Employer (whether direct or indirect or whether by merger, acquisition of assets, consolidation or otherwise) to assume in a writing delivered to the Employee the obligations of the Employer under this Agreement, if such assumption agreement
is not delivered to the Employee within ten days after he provides the successor to the Employer with written notice of his desire to receive such agreement. Notwithstanding the foregoing, the Employee shall be deemed to have terminated his
Employment for Good Reason for purposes of this Agreement only if he terminates his Employment within thirty days after the occurrence of the event described in this paragraph that permits him to terminate his Employment for Good Reason. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>6.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>CONFIDENTIALITY; UNFAIR COMPETITION</U></B>.<B></B> </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(a) <U>Confidentiality</U></B>.
The Employee shall at no time, either during his Employment or after the termination of his Employment for any reason, use or disclose to any person, directly or indirectly, any confidential or proprietary information concerning the business of the
Employer, including, without limitation, any business secret, trade secret, financial information, software, internal procedure, business plan, marketing plan, pricing strategy or policy or customer list, except to the extent that such use or
disclosure is (1)&nbsp;necessary to the performance of the Employee&#146;s Employment during the period that he is so employed, (2)&nbsp;required by an order of a court of competent jurisdiction, or (3)&nbsp;authorized in writing by the
Employer&#146;s Chief Executive Officer or President. The prohibition that is contained in the preceding sentence shall not apply to any information that is or becomes generally available to the public other than through a disclosure by the Employee
or by a person acting in concert with him. Within five days after the termination of his Employment, the Employee shall return to the Employer all memoranda, notes and other documents in his possession or control that relate to the confidential
information of the Employer. Upon the Employer&#146;s request, the Employee agrees to execute and deliver to the Employer any form of confidentiality agreement that the Employer requires generally from its employees. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(b) <U>Competition During the Term of Employment</U></B>. During his Employment, the Employee shall not, directly or indirectly (as owner,
principal, agent, partner, officer, employee, independent contractor, consultant, shareholder or otherwise), (1)&nbsp;hire (or solicit for the purpose of hiring) or cause any other person to hire (or solicit for the purpose of hiring) any employee
or officer of the Employer or (2)&nbsp;compete in any manner with the business then being conducted by the Employer. The prohibition that is set forth in the preceding sentence shall not be construed as prohibiting the Employee from acquiring and
owning up to one percent of the outstanding common stock of any corporation whose common stock is traded on a national securities exchange. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">7 </P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(c) <U>Remedies</U></B>. If the Employee breaches any of the provisions of this Section or if
the Employee breaches any of the terms of any other confidentiality or unfair competition agreement that he may enter into with the Employer, the Employer may, among its other remedies and notwithstanding any provision to the contrary in this
Agreement, terminate all payments that are otherwise owed to the Employee under this Agreement, and the Employer shall be relieved of any obligation to make such payments to the Employee. Furthermore, the Employee acknowledges that damages and such
termination of payments would be an inadequate remedy for his breach of any of the provisions of this Section, and that his breach of any of such provisions will result in immeasurable and irreparable harm to the Employer. Therefore, in addition to
any other remedy to which the Employer may be entitled by reason of the Employee&#146;s breach of any such provision, the Employer shall be entitled to seek and obtain temporary, preliminary and permanent injunctive relief restraining the Employee
from committing or continuing any breach of any provision of this Section. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>7.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>INVENTIONS/WORK PRODUCT</U></B> </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(a)</B> <U><B>Work Product</B></U>. The Employee
acknowledges and agrees that all writings, works of authorship, technology, inventions, discoveries, ideas and other work product of any nature whatsoever that are created, prepared, produced, authored, edited, amended, conceived or reduced to
practice by the Employee individually or jointly with others during the period of his Employment by the Employer and relating in any way to the business or contemplated business, research or development of the Employer (regardless of when or where
the Work Product is prepared or whose equipment or other resources is used in preparing the same) and all printed, physical and electronic copies, all improvements, rights and claims related to the foregoing, and other tangible embodiments thereof
(collectively, &#147;<U><B>Work Product</B></U>&#148;), as well as any and all rights in and to copyrights, trade secrets, trademarks (and related goodwill), patents and other intellectual property rights therein arising in any jurisdiction
throughout the world and all related rights of priority under international conventions with respect thereto, including all pending and future applications and registrations therefor, and continuations, divisions, continuations-in-part, reissues,
extensions and renewals thereof (collectively, &#147;<U><B>Intellectual Property Rights</B></U>&#148;), shall be the sole and exclusive property of the Employer. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(b)</B> <U><B>Work Made for Hire; Assignment</B></U>. The Employee acknowledges that, by reason of being employed by the Employer at the
relevant times, to the extent permitted by law, all of the Work Product consisting of copyrightable subject matter is &#147;work made for hire&#148; as defined in 17 U.S.C. &#167; 101 and such copyrights are therefore owned by the Employer. To the
extent that the foregoing does not apply, the Employee hereby irrevocably assigns to the Employer, for no additional consideration, the Employee&#146;s entire right, title and interest in and to all Work Product and Intellectual Property Rights
therein, including the right to sue, counterclaim and recover for all past, present and future infringement, misappropriation or dilution thereof, and all rights corresponding thereto throughout the world. Nothing contained in this Agreement shall
be construed to reduce or limit the Employer&#146;s rights, title or interest in any Work Product or Intellectual Property Rights so as to be less in any respect than that the Employer would have had in the absence of this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(c)</B> <U><B>Further Assurances; Power of Attorney</B></U>. During and after his Employment, the Employee agrees to reasonably cooperate
with the Employer to (1)&nbsp;apply for, </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">8 </P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">
obtain, perfect and transfer to the Employer the Work Product as well as an Intellectual Property Right in the Work Product in any jurisdiction in the world, and (2)&nbsp;maintain, protect and
enforce the same, including, without limitation, executing and delivering to the Employer any and all applications, oaths, declarations, affidavits, waivers, assignments and other documents and instruments as shall be requested by the Employer. The
Employee hereby irrevocably grants the Employer a power of attorney to execute and deliver any such documents on the Employee&#146;s behalf in his name and to do all other lawfully permitted acts to transfer the Work Product to the Employer and
further the transfer, issuance, prosecution and maintenance of all Intellectual Property Rights therein, to the full extent permitted by law, if the Employee does not promptly cooperate with the Employer&#146;s request (without limiting the rights
the Employer shall have in such circumstances by operation of law). The power of attorney is coupled with an interest and shall not be affected by the Employee&#146;s subsequent incapacity. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>8.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>GENERAL PROVISIONS</U></B>. </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(a) <U>Entire Agreement</U></B>. This Agreement (and
any separate confidentiality agreements that may be entered into between the Employer and the Employee) constitutes the entire agreement of the Employer and the Employee relating to the terms and conditions of the Employee&#146;s Employment and
supersedes all prior oral and written understandings and agreements relating to such subject matter. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(b) <U>Notices</U></B>. All
notices required or permitted by this Agreement to be given by one party to the other party shall be delivered in writing, by registered or certified United States mail (postage prepaid and return receipt requested) or by reputable overnight
delivery service, to the Employer or the Employee, as applicable, at the address that appears on the signature page of this Agreement (or to such other address that one party gives the other in the foregoing manner or, in the case of the Employee,
to his principal residential address on file with the Employer after the Employee&#146;s relocation to Southern California). Any such notice that is sent in the foregoing manner shall be deemed to have been delivered three days after deposit in the
United&nbsp;States mail or one day after delivery to an overnight delivery service. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(c) <U>Expenses</U></B>. Each party to this
Agreement shall bear its own costs and expenses (including, without limitation, attorneys&#146; fees) incurred in connection with this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(d) <U>Amendment and Termination</U></B>. This Agreement may be amended or terminated only pursuant to a writing executed by the Employer
and the Employee. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(e) <U>Successors and Assigns</U></B>. This Agreement shall be binding upon, and shall benefit, the Employer and
the Employee and their respective successors and assigns (including, without limitation, the Employee&#146;s personal representative and beneficiaries and any corporation or other entity into which the Employer is merged); provided, however, that
the Employee is not entitled to assign his obligations hereunder to another person. A successor of the Employer shall include, without limitation, any corporation or other entity that acquires, directly or indirectly, all or substantially all of the
Employer&#146;s assets, whether by merger, acquisition, lease or another form of transaction. Any such successor to the Employer referred to in this paragraph shall thereafter be deemed the &#147;Employer&#148; for purposes of this Agreement. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">9 </P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(f) <U>Calculation of Time</U></B>. Wherever in this Agreement a period of time is stated in
a number of days, it shall be deemed to mean calendar days. However, when any period of time so stated would end upon a Saturday, Sunday or legal holiday, such period shall be deemed to end upon the next day following that is not a Saturday, Sunday
or legal holiday. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(g) <U>Further Assurances</U></B>. Each of the Employer and the Employee shall perform any further acts and execute
and deliver any further documents that may be reasonably necessary to carry out the provisions of this Agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(h) <U>Provisions
Subject to Applicable Law</U></B>. All provisions of this Agreement shall be applicable only to the extent that they do not violate any applicable law and are intended to be limited to the extent necessary so that they will not render this Agreement
invalid, illegal or unenforceable under any applicable law. If any provision of this Agreement or any application thereof shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of other provisions of this
Agreement or of any other application of such provision shall in no way be affected thereby. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(i) <U>Waiver of Rights</U></B>. Neither
party shall be deemed to have waived any right or remedy that it has under this Agreement unless this Agreement expressly provides a period of time within which such right or remedy must be exercised and such period has expired or unless such party
has expressly waived the same in writing. The waiver by either party of a right or remedy hereunder shall not be deemed to be a waiver of any other right or remedy or of any subsequent right or remedy of the same kind. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(j) <U>Headings; Gender and Number</U></B>. The headings contained in this Agreement are for reference purposes only and shall not affect
in any manner the meaning or interpretation of this Agreement. Where appropriate to the context of this Agreement, use of the singular shall be deemed also to refer to the plural, and use of the plural to the singular, and pronouns of one gender
shall be deemed to comprehend either or both of the other genders. The terms &#147;hereof,&#148; &#147;herein,&#148; &#147;hereby&#148; and variations thereof shall, whenever used in this Agreement, refer to this Agreement as a whole and not to any
particular section of this Agreement. The term &#147;<U><B>person</B></U>&#148; refers to any natural person, corporation, partnership, limited liability company or other association or entity, as applicable. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(k) <U>Representation of the Employee; Interpretation of This Agreement</U></B>. The Employee acknowledges and agrees that he has had an
adequate opportunity to review this Agreement with his counsel prior to executing this Agreement, and that he is freely entering into this Agreement without coercion from any source. The Employer and the Employee have negotiated the terms of this
Agreement, and the language used herein was chosen by the parties to express their mutual intent. This Agreement shall be construed without regard to any presumption or rule requiring construction against the party causing the instrument to be
drafted. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(l) <U>Counterparts</U></B>. This Agreement may be executed in counterparts and by facsimile or electronic transmission in
PDF format, each of which will be deemed an original but both of which together will constitute a single instrument. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">10 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(m) <U>Governing Laws</U></B>. This Agreement shall be governed by, and construed and
enforced in accordance with, the internal laws of the State of California. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>9.</B></TD>
<TD ALIGN="left" VALIGN="top"><B><U>ARBITRATION</U></B>. </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(a) <U>Submission to Arbitration</U></B>. Any dispute,
controversy or claim arising out of or related to this Agreement, any breach of this Agreement or the Employee&#146;s employment with the Employer shall be submitted to and decided exclusively by binding arbitration in Los Angeles, California.
Claims covered by this provision include, but are not limited to, the following: (1)&nbsp;alleged violations of federal, state and/or local constitutions, statutes, regulations or ordinances, including, but not limited to, laws dealing with unlawful
discrimination and harassment; (2)&nbsp;claims for misappropriation of trade secrets, breach of fiduciary duty, or other duties owed by the Employee to the Employer; (3)&nbsp;claims based on any purported breach of contractual obligation, including
but not limited to breach of the covenant of good faith and fair dealing, wrongful termination or constructive discharge; (4)&nbsp;violations of public policy; (5)&nbsp;claims relating to a transfer, reassignment, denial of promotion, demotion,
reduction in pay, or any other term or condition of employment; (6)&nbsp;claims based on contract or tort; and (7)&nbsp;any and all other claims arising out of the Employee&#146;s employment with or termination by the Employer. This includes, but is
not limited to, claims brought under Title VII of the Civil Rights Act of 1964; California Government Code Section&nbsp;12960 <I>et seq</I>.; and any other federal, state or local anti-discrimination laws relating to discrimination, including, but
not limited to, those based on the following protected categories: genetic information or characteristics; sex and gender; race; religion; national origin; mental or physical disability (including claims under the Americans With Disabilities Act);
medical condition; veteran or military status; marital status; sexual orientation or preference; age; pregnancy; and retaliation or wrongful termination in violation of public policy for alleging or filing or participating in any grievance or
otherwise complaining of any wrong relating to the aforementioned categories or any public policy. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(b) <U>Exclusion of
Claims</U></B>. The following claims are expressly excluded and not covered by this Agreement for final and binding arbitration: (1)&nbsp;claims related to Workers&#146; Compensation and Unemployment Insurance; (2)&nbsp;administrative filings with
governmental agencies such as the California Department of Fair Employment&nbsp;&amp; Housing, the Equal Employment Opportunity Commission, the U.S. Department of Labor or the National Labor Relations Board; (3)&nbsp;claims that are expressly
excluded by statute or are expressly required to be arbitrated under a different procedure pursuant to the terms of an employee benefit plan; and (4)&nbsp;claims within the jurisdictional limits of small claims court. Nor does this Agreement
preclude either party from seeking appropriate interim injunctive relief pursuant to the California Code of Civil Procedure or applicable federal law before arbitration or while arbitration proceedings are pending. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(c) <U>Arbitration Provider and Rules</U></B>. Any claim arising between the Employee and the Employer covered by the arbitration
provisions of this Agreement shall be submitted to final and binding arbitration in the rules and procedures of JAMS, or any successor entity thereto, in effect upon the date the claim is submitted in writing to the Employer or the Employee, to
which rules and procedures the parties hereby expressly agree. Such rules may be found at <FONT STYLE="font-family:Times New Roman" COLOR="#0000ff"><U>http://www.jamsadr.com/rules-employment-arbitration/</U>.</FONT><FONT
STYLE="font-family:Times New Roman"> Such rules allow for discovery by each party as ordered by the arbitrator. The arbitrator must allow discovery adequate to arbitrate all claims, including access to essential documents and witnesses. In making
his or her award, the arbitrator shall have the authority to make any finding and provide any remedy. </FONT></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">11 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(d)</B> <U><B>Written Award Required</B></U>. The arbitrator must issue a written award. The
arbitrator shall, in the award or separately, make specific findings of fact, and set forth such facts in support of his or her decision, as well as the reasons and basis for his or her opinion. Should the arbitrator exceed the jurisdiction or
authority here conferred, any party aggrieved thereby may file a petition to vacate, amend or correct the arbitrator&#146;s award in a court of competent jurisdiction, pursuant to applicable law. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman"><B>(e)</B> <B><U>Fees and Costs</U></B>. To the extent required by law, the Employer shall pay the arbitrator&#146;s fees and other
administrative costs of arbitration, and other reasonable costs as specified by the arbitrator under applicable law so that Employee does not have to bear any cost which he would not have to bear in court beyond any amount which would have to be
paid as a filing fee in a superior court. The arbitrator shall award attorneys&#146; fees and costs to the prevailing party. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">[signature
page follows] </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">12 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman">IN WITNESS WHEREOF, the Employer and the Employee have executed and delivered this Agreement as
of the date first written above. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt">


<TR>
<TD WIDTH="8%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="91%"></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top" COLSPAN="3">CALAVO GROWERS, INC.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="32"></TD>
<TD HEIGHT="32" COLSPAN="2"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:12pt; font-family:Times New Roman">&nbsp;</P></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Lecil E. Cole</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Chief Executive Officer</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top" COLSPAN="3">Current Address:</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top" COLSPAN="3">1141A Cummings Road</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top" COLSPAN="3">Santa Paula, CA 93060</TD></TR>
</TABLE></DIV> <P STYLE="font-size:24pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TR>
<TD WIDTH="100%"></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:12pt; font-family:Times New Roman">&nbsp;</P></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top">B. JOHN LINDEMAN</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top">Current Address:</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top">331 Mallwyd Road</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top">Merion Station, PA 19066</TD></TR>
</TABLE></DIV>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">13 </P>

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