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Published: 2008-03-26

Confidentiality Agreement - Kraft Foods Inc. and Balance Bar Co.



 
                                                                November 2, 1999

Kraft
Three Lakes Drive
Northfield, IL  60093


Attention:  Mr. William J. Eichar
            Vice President - Mergers and Acquisitions


Ladies and Gentlemen:

  In connection with your consideration of a possible acquisition by you of all
or part of, or investment in, Balance Bar Company (the 'Company') by way of
merger, a sale of assets or stock, or otherwise (a 'Transaction'), you have
requested information concerning the Company. Salomon Smith Barney Inc. ('SSB')
is acting as adviser to the Company.

  As a condition to your being furnished with such information, including any
Confidential Information Memorandum prepared by the Company, you agree to treat
any information concerning the Company, its affiliates and subsidiaries that is
furnished to you by or on behalf of the Company, whether furnished before or
after the date of this letter, together with analyses, compilations, studies or
other documents prepared by you or any of your directors, officers, employees,
agents or advisers (including, without limitation, attorneys, accountants,
consultants, bankers, financial advisers and any representatives of your
advisers) (collectively referred to as the 'Evaluation Material'), in accordance
with the provisions of this agreement. The term 'Evaluation Material' does not
include information that (a) was or becomes generally available to the public
other than as a result of a disclosure by you or your Representatives or (b) was
or becomes available to you on a non-confidential basis from a source other than
the Company or its advisers, provided that such source was not known by you to
be bound by any agreement with the Company to keep such information
confidential, or otherwise prohibited from transmitting the information to you
by a contractual, legal or fiduciary obligation.

  You hereby agree that the Evaluation Material will be used solely for the
purpose of evaluating a possible Transaction between the Company and you, and
that such information will be kept confidential by you and your Representatives,
except to the extent that disclosure of such information (a) has been consented
to in writing by the Company, (b) is required by law, regulation, supervisory
authority or other applicable judicial or governmental order or (c) is made to
your Representatives who need to know such information for the purpose of
evaluating any such possible Transaction between the Company and you (it being
understood that such Representatives shall have been advised of this agreement
and shall have agreed to be bound by the provisions hereof). In any event, you
shall be responsible for any breach of this agreement by any of your
Representatives and you agree, at your sole expense, to take all reasonable
measures (including but not limited to court
 
proceedings) to restrain your Representatives from prohibited or unauthorized
disclosure or use of the Evaluation Material. You further agree that the
Evaluation Material that is in written form shall not be copied or reproduced at
any time without the prior written consent of the Company.

  In addition, without the prior written consent of the Company, you will not,
and will direct your Representatives not to, disclose to any person (a) that the
Evaluation Material has been made available to you or your Representatives, (b)
that discussions or negotiations are taking place concerning a possible
Transaction between the Company and you or (c) any terms, conditions or other
facts with respect to any such possible Transaction, including the status
thereof.

  In the event that you are requested or required by law, regulation,
supervisory authority or other applicable judicial or governmental order to
disclose any Evaluation Material, you will provide the Company with prompt
written notice of such request or requirement so that the Company may seek an
appropriate protective order. If, failing the entry of a protective order, you
are, in the opinion of your counsel, compelled to disclose Evaluation Material,
you may disclose that portion of the Evaluation Material that the Company's
counsel advises that you are compelled to disclose and will exercise reasonable
efforts to obtain assurance that confidential treatment will be accorded to that
portion of the Evaluation Material that is being disclosed. In any event, you
will not oppose action by the Company to obtain an appropriate protective order
or other reliable assurance that confidential treatment will be accorded the
Evaluation Material.

  Until the earliest of (a) the execution by you of a definitive agreement
regarding a Transaction with the Company, (b) an acquisition of the Company by a
third party, or (c) three years from the date of this agreement, you agree not
to initiate or maintain contact (except for those contacts made in the ordinary
course of business) with any officer, director, employee, customer, supplier or
vendor of the Company regarding the Company's business, operation, prospects or
finances, except with the express permission of the Company. It is understood
that SSB will arrange for appropriate contacts for due diligence purposes. All
(i) communications regarding this transaction, (ii) requests for additional
information, (iii) requests for facility tours or management meetings, and (iv)
discussions or questions regarding procedures, will be submitted or directed to
SSB.

  You agree not to solicit for employment any of the current employees of the
Company to whom you had been directly or indirectly introduced or otherwise had
contact with as a result of your consideration of a Transaction so long as they
are employed by the Company or solicit any customers, clients, or accounts of
the Company, during the period in which there are discussions conducted pursuant
hereto and for a period of one year thereafter, without the prior written
consent of the Company.

  In consideration of the Evaluation Material being furnished to you, you hereby
further agree that, without the prior written consent of the Board of Directors
of the Company, for a period of [three] years from the date hereof, neither you
nor any of your affiliates (as such term is defined in Rule 12b-2 under the
Securities Exchange Act of 1934, as amended), acting alone or as part of a
group, will (1) acquire or offer or agree to acquire, directly or indirectly, by
purchase or otherwise, any voting securities or securities convertible into
voting securities of the Company, (2) propose to enter into, directly or
indirectly, any merger or business combination involving the Company or any of
its subsidiaries, (3) otherwise seek to influence or control, in any manner
whatsoever (including proxy solicitation or otherwise), the management or
policies of the Company or (4) assist, advise or encourage (including by
knowingly providing or arranging financing for that purpose) any other

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person in doing any of the foregoing.

  You hereby acknowledge that you are aware and that you will advise your
Representatives that the federal and state securities laws prohibit any person
who has material, non-public information about a company from purchasing or
selling securities of such a company or from communicating such information to
any other person under circumstances in which it is reasonably foreseeable that
such person is likely to purchase or sell such securities.

  All Evaluation Material disclosed by the Company shall be and shall remain the
property of the Company. Within five days after being so requested by the
Company, you shall return or destroy all documents thereof furnished to you by
the Company. Except to the extent a party is advised in writing by counsel such
destruction is prohibited by law, you will also destroy all written material,
memoranda, notes, copies, excerpts and other writings or recordings whatsoever
prepared by you or your Representatives based upon, containing or otherwise
reflecting any Evaluation Material. Any destruction of materials shall be
confirmed by you in writing. Any Evaluation Material that is not returned or
destroyed, including without limitation any oral Evaluation Material, shall
remain subject to the confidentiality obligations set forth in this agreement.

  You understand and acknowledge that any and all information contained in the
Evaluation Material is being provided without any representation or warranty,
express or implied, as to the accuracy or completeness of the Evaluation
Material, on the part of the Company or SSB. You agree that none of the Company,
SSB or any of their respective affiliates or representatives shall have any
liability to you or any of your Representatives. It is understood that the scope
of any representations and warranties to be given by the Company will be
negotiated along with other terms and conditions in arriving at a mutually
acceptable form of definitive agreement should discussions between you and the
Company progress to such a point.

  You agree that unless and until a definitive agreement regarding a Transaction
between the Company and you has been executed, neither the Company nor you will
be under any legal obligation of any kind whatsoever with respect to such a
Transaction by virtue of this agreement except for the matters specifically
agreed to herein. You further acknowledge and agree that the Company reserves
the right, in its sole discretion, to reject any and all proposals made by you
or any of your Representatives with regard to a Transaction between the Company
and you, and to terminate discussions and negotiations with you at any time.

  You understand that (a) the Company shall be free to conduct any process with
respect to a possible Transaction as the Company in its sole discretion shall
determine (including, without limitation, by negotiating with any prospective
party and entering into a definitive written agreement without prior notice to
you or any other person), (b) any procedures relating to such Transaction may be
changed at any time without notice to you or any other person and (c) you shall
not have any claim whatsoever against the Company or SSB or any of their
respective directors, officers, stockholders, owners, affiliates, agents or
representatives, arising out of or relating to any possible or actual
Transaction (other than those as against parties to a definitive written
agreement with you in accordance with the terms thereof).

  It is understood and agreed that money damages would not be a sufficient
remedy for any breach of this agreement and that the Company shall be entitled
to specific performance and injunctive or other equitable relief as a remedy for
any such breach and you further agree to waive any requirement for the security
or posting of any bond in connection with such remedy. Such remedy

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shall not be deemed to be the exclusive remedy for breach of this agreement but
shall be in addition to all other remedies available at law or equity to the
Company.

  In the event of litigation relating to this agreement, if a court of competent
jurisdiction determines in a final, non-appealable order that a party has
breached this agreement, then such party shall be liable and pay to the non-
breaching party the reasonable legal fees such non-breaching party has incurred
in connection with such litigation, including any appeal therefrom.

  This agreement is for the benefit of the Company and SSB and is governed by
the laws of the State of New York without regard to conflict of laws principles.
Any action brought in connection with this agreement shall be brought in the
federal or state courts located in the City of New York, and the parties hereto
hereby irrevocably consent to the jurisdiction of such courts. Your obligations
under this agreement shall terminate three (3) years after the date hereof,
except as otherwise explicitly stated above.

  This agreement may not be amended except in writing signed by both parties
hereto. No failure or delay by the Company in exercising any right hereunder or
any partial exercise thereof shall operate as a waiver thereof or preclude any
other or further exercise of any right hereunder. The invalidity or
unenforceability of any provision of this agreement shall not affect the
validity or enforceability of any other provisions of this agreement, which
shall remain in full force and effect.
 
  This agreement may be executed in counterparts. Please confirm that the
foregoing is in accordance with your understanding of our agreement by signing
and returning to us a copy of this letter.


                                         Very truly yours,

                                         SALOMON SMITH BARNEY INC.
                                         on behalf of
                                         BALANCE BAR COMPANY

                                         By:
                                            --------------------------

Accepted and agreed to as of
the date set forth above:

Kraft


By:
   -----------------------------

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