DREYERS GRAND ICE CREAM HOLDINGS INC
EXHIBIT 10.36
<DOCUMENT>
<TYPE>EX-10.36
<SEQUENCE>13
<FILENAME>f92061exv10w36.txt
<DESCRIPTION>EXHIBIT 10.36
<TEXT>
<PAGE>
                                                                   Exhibit 10.36


                               FIRST AMENDMENT TO
                              EMPLOYMENT AGREEMENT

         This FIRST AMENDMENT TO THE EMPLOYMENT AGREEMENT by and among Dreyer's
Grand Ice Cream, Inc., a Delaware corporation (the "Company") and J. Tyler
Johnston (the "Executive"), dated as of June 16, 2002 (the "Agreement"), is
dated as of July 21, 2003.

         WHEREAS, the Company, Dreyer's Grand Ice Cream Holdings, Inc. (formerly
known as New December, Inc.), a Delaware corporation ("New Dreyer's") and wholly
owned subsidiary of the Company, December Merger Sub, Inc., a Delaware
corporation and wholly owned subsidiary of New Dreyer's, Nestle Holdings, Inc.,
a Delaware corporation ("Nestle") and NICC Holdings, Inc., a Delaware
corporation and wholly owned indirect subsidiary of Nestle ("NICC") have entered
into an Agreement and Plan of Merger Contribution, dated as of June 16, 2002 (as
such agreement may hereafter be amended, the "Merger Agreement"), pursuant to
which, among other things, the Company and NICC have become wholly owned
subsidiaries of New Dreyer's effective as of June 26, 2003; and

         WHEREAS, the Company and the Executive have entered into the Agreement
to provide for the employment of the Executive by the Company, and the Executive
wishes to serve the Company, in the capacities and on the terms and subject to
the conditions set forth in the Agreement; and

         WHEREAS, in view of the fact that the Effective Time of the Merger (as
defined in the Merger Agreement) occurred later than originally anticipated, the
Company and the Executive agree that it is appropriate to amend the Agreement as
set forth in this First Amendment; and

         WHEREAS, Section 9(c) of the Agreement requires that the Company cause
New Dreyer's to become a party to and co-obligor under the Agreement;

         NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

         1.       Vesting of Deferred Options. Section 1(b) of the Agreement is
hereby amended to read as follows:

                           In consideration for the protections afforded to the
                  Executive under this Agreement, the Executive hereby waives
                  the vesting of the Deferred Options (as defined below) that
                  has occurred or may hereafter occur solely as a result of the
                  applicability of the change-of-control provisions of Section
                  11 of the Company's Stock Option Plan (1993) (the "Option
                  Plan") upon the approval of the Merger Agreement by the Board
                  of Directors of the Company (the "Board") and/or the
                  transactions contemplated by the Merger Agreement, and agrees
                  that the Deferred Options shall vest in accordance with the
                  schedule set forth in Exhibit A hereto, subject to the terms
                  of the Deferred Options, the Option Plan and the provisions of
                  Sections 4(a)(iv), 4(b)(iii) and 4(c)(v) of this Agreement.
                  Notwithstanding the foregoing, if the Merger Agreement is
                  terminated as a result of a Change in Control occurring before
                  the Effective Time of the Merger: (i) such waiver and the
                  preceding sentence shall be void unless expressly reaffirmed
                  as contemplated by Section 1(a) above; and (ii) if such
                  reaffirmation occurs, the Deferred Options

<PAGE>

                  shall vest in three equal annual installments on each of the
                  first three anniversaries of the Agreement Effective Date,
                  with each such annual installment including a pro-rata portion
                  of each separate grant of Deferred Options. The "Deferred
                  Options" means those stock options that have been granted to
                  the Executive under the Option Plan that are outstanding on
                  the date of this Agreement that would not be vested on the
                  date of this Agreement, absent the fact that approval of the
                  Merger Agreement by the Board caused them to vest pursuant to
                  Section 11 of the Option Plan. In addition, the Executive
                  consents to the treatment of his options to purchase Company
                  common stock provided for in Section 2.11(e) of the Merger
                  Agreement. Except as provided otherwise in this Agreement or
                  the Merger Agreement, the Deferred Options shall continue to
                  be subject to the Option Plan and the terms of the underlying
                  award agreement, including without limitation the provision
                  that vested Deferred Options will remain exercisable for at
                  least three months following any termination of the
                  Executive's employment for any reason, whether during or after
                  the end of the Employment Period (but not after the expiration
                  of the original option term).

         2.       New Dreyer's. New Dreyer's acknowledges that, as required by
Exection 9(c) of the Agreement: (a) as of the Effective Time of the Merger on
June 26, 2003, New Dreyer's has become an additional party to the Agreement and
a co-obligor with respect to the obligations of the Company under the Agreement;
and (b) from and after the Effective Time of the Merger, the references in
Section 3(b) and 3(c) of the Agreement to the "Board" shall be deemed to refer
to the Board of Directors of New Dreyer's, and all references in the Agreement
to the Company shall be deemed to refer to both the Company and New Dreyer's.

         3.       Agreement Ratified. The Agreement is ratified and confirmed
without amendment, except as specifically provided above.

         4.       Counterparts. This First Amendment may be executed
simultaneously in two counterparts, each of which shall be deemed an original
but which together shall constitute one and the same instrument.

<PAGE>

         IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand
and, pursuant to the authorization from their respective boards of directors,
the Company and New Dreyer's each has caused these presents to be executed in
its name on its behalf, all as of the day and year first above written.

                                                /s/  J. Tyler Johnston
                                          --------------------------------------
                                                        J. TYLER JOHNSTON

                                          DREYER'S GRAND ICE CREAM, INC.

                                          By:   /s/  T. Gary Rogers
                                              ----------------------------------
                                              Name:  T. Gary Rogers
                                              Title: Chairman of the Board and
                                                     Chief Executive Officer

                                          DREYER'S GRAND ICE CREAM HOLDINGS,
                                            INC.

                                          By:   /s/  T. Gary Rogers
                                              ----------------------------------
                                              Name:  T. Gary Rogers
                                              Title: Chairman of the Board and
                                                     Chief Executive Officer

<PAGE>

                                    Exhibit A

                      VESTING SCHEDULE FOR DEFERRED OPTIONS
<PAGE>

                                                                         Page: 1
<TABLE>
<S>                                       <C>                                       <C>
OPTIONS AND AWARDS SUMMARY                DREYER'S GRAND ICE CREAM, INC.
                                          File:                                     Optsum

[ ]                                       ID:94-2967523
                                          Date:                                     8/4/2003

[ ]                                       5929 College Avenue
                                          Time:                                     3:52:16PM
[ ]                                       As of: 6/27/2003O
                                          Oakland, California  94618

Current Market Value: $79.000000

J. TYLER JOHNSTON                         ID: ###-##-####
312 SEAVIEW
PIEDMONT, CA 94610
</TABLE>

<TABLE>
<S>                     <C>                        <C>                 <C>                    <C>             <C>
OPTION NO.: 000562      OPTION DATE: 3/4/1997      SHARES: 40,000      PRICE: $15.191400      PLAN: NQ93      TYPE: NQ
</TABLE>

<TABLE>
<CAPTION>
             V E S T I N G  S C H E D U L E                       T R A N S A C T I O N S           C A N C E L L A T I O N S
Granted   Full Vest   Exercisable   Total Price    Expires    Date     Type     Shares    Value     Date     Reason     Shares
<S>       <C>         <C>           <C>           <C>         <C>      <C>      <C>       <C>       <C>      <C>        <C>
16,000    3/4/1999      16,000      $243,062.40   3/4/2007
 8,000    3/4/2000       8,000      $121,531.20   3/4/2007
 8,000    3/4/2001       8,000      $121,531.20   3/4/2007
 8,000    3/4/2002       8,000      $121,531.20   3/4/2007
40,000                  40,000      $607,656.00
</TABLE>

<TABLE>
<S>                     <C>                        <C>                 <C>                    <C>             <C>
OPTION NO.: 000860      OPTION DATE: 3/3/1998      SHARES:  18,200     PRICE:  $22.875000     PLAN:  NQ93     TYPE:  NQ
</TABLE>

<TABLE>
<CAPTION>
             V E S T I N G  S C H E D U L E                       T R A N S A C T I O N S           C A N C E L L A T I O N S
Granted   Full Vest   Exercisable   Total Price    Expires    Date     Type     Shares    Value     Date     Reason     Shares
<S>       <C>         <C>           <C>           <C>         <C>      <C>      <C>       <C>       <C>      <C>        <C>
 7,280    3/3/2000       7,280      $166,530.00   3/3/2008
 3,640    3/3/2001       3,640      $ 83,265.00   3/3/2008
 3,640    3/3/2002       3,640      $ 83,265.00   3/3/2008
 1,213    6/26/2004          0      $      0.00   3/3/2008
 1,213    6/26/2005          0      $      0.00   3/3/2008
 1,214    4/3/2006           0      $      0.00   3/3/2008
18,200                  14,560      $333,060.00
</TABLE>

<PAGE>

<TABLE>
<S>                     <C>                        <C>                 <C>                    <C>             <C>
OPTION NO.: 000869      OPTION DATE: 3/3/1998      SHARES: 10,800      PRICE: $22.875000      PLAN: IS93      TYPE: ISO
</TABLE>

<TABLE>
<CAPTION>
             V E S T I N G  S C H E D U L E                       T R A N S A C T I O N S           C A N C E L L A T I O N S
Granted   Full Vest   Exercisable   Total Price    Expires    Date     Type     Shares    Value     Date     Reason     Shares
<S>       <C>         <C>           <C>           <C>         <C>      <C>      <C>       <C>       <C>      <C>        <C>
 4,320    3/3/2000      4,320       $ 98,820.00   3/3/2008
 2,160    3/3/2001      2,160       $ 49,410.00   3/3/2008
 2,160    3/3/2002      2,160       $ 49,410.00   3/3/2008
   720    12/1/2003         0       $      0.00   3/3/2008
   720    12/1/2004         0       $      0.00   3/3/2008
   720    4/3/2006          0       $      0.00   3/3/2008
10,800                  8,640       $197,640.00
</TABLE>

<TABLE>
<S>                     <C>                        <C>                 <C>                    <C>             <C>
OPTION NO.: 000883      OPTION DATE: 2/23/1999     SHARES: 12,350      PRICE: $12.375000      PLAN: NQ93      TYPE: NQ
</TABLE>

<TABLE>
<CAPTION>
             V E S T I N G  S C H E D U L E                       T R A N S A C T I O N S           C A N C E L L A T I O N S
Granted   Full Vest   Exercisable   Total Price    Expires    Date     Type     Shares    Value     Date     Reason     Shares
<S>       <C>         <C>           <C>           <C>         <C>      <C>      <C>       <C>       <C>      <C>        <C>
 4,940    2/23/2001     4,940       $61,132.50    2/23/2009
 2,470    2/23/2002     2,470       $30,566.25    2/23/2009
 1,647    6/26/2004         0       $     0.00    2/23/2009
 1,647    6/26/2005         0       $     0.00    2/23/2009
 1,646    4/3/2006          0       $     0.00    2/23/2009
12,350                  7,410       $91,698.75
</TABLE>

<TABLE>
<S>                     <C>                        <C>                 <C>                    <C>             <C>
OPTION NO.: 001062      OPTION DATE: 2/23/1999     SHARES: 43,450      PRICE: $12.375000      PLAN: NQ93      TYPE: NQ
</TABLE>

<TABLE>
<CAPTION>
             V E S T I N G  S C H E D U L E                       T R A N S A C T I O N S           C A N C E L L A T I O N S
Granted   Full Vest   Exercisable   Total Price    Expires    Date     Type     Shares    Value     Date     Reason     Shares
<S>       <C>         <C>           <C>           <C>         <C>      <C>      <C>       <C>       <C>      <C>        <C>
17,380    2/23/2001     17,380      $215,077.50   2/23/2009
 8,690    2/23/2002      8,690      $107,538.75   2/23/2009
 5,793    6/26/2004          0      $      0.00   2/23/2009
 5,793    6/26/2005          0      $      0.00   2/23/2009
 5,794    4/3/2006           0      $      0.00   2/23/2009
43,450                  26,070      $322,616.25
</TABLE>

<PAGE>

<TABLE>
<S>                     <C>                        <C>                 <C>                    <C>             <C>
OPTION NO.: 001133      OPTION DATE: 2/23/2000     SHARES: 41,950      PRICE: $17.343750      PLAN: NQ93      TYPE:  NQ
</TABLE>

<TABLE>
<CAPTION>
             V E S T I N G  S C H E D U L E                       T R A N S A C T I O N S           C A N C E L L A T I O N S
Granted   Full Vest   Exercisable   Total Price    Expires    Date     Type     Shares    Value     Date     Reason     Shares
<S>       <C>         <C>           <C>           <C>         <C>      <C>      <C>       <C>       <C>      <C>        <C>
16,780    2/23/2002     16,780      $291,028.13   2/23/2010
 8,390    6/26/2004          0      $      0.00   2/23/2010
 8,390    6/26/2005          0      $      0.00   2/23/2010
 8,390    4/3/2006           0      $      0.00   2/23/2010
41,950                  16,780      $291,028.13
</TABLE>

<TABLE>
<S>                     <C>                        <C>                 <C>                    <C>             <C>
OPTION NO.: 001558      OPTION DATE: 2/14/2001     SHARES: 28,190      PRICE: $31.125000      PLAN: NQ93      TYPE: NQ
</TABLE>

<TABLE>
<CAPTION>
             V E S T I N G  S C H E D U L E                       T R A N S A C T I O N S           C A N C E L L A T I O N S
Granted   Full Vest   Exercisable   Total Price    Expires    Date     Type     Shares    Value     Date     Reason     Shares
<S>       <C>         <C>           <C>           <C>         <C>      <C>      <C>       <C>       <C>      <C>        <C>
     0    6/14/2002        0        $      0.00   2/14/2011
 9,397    6/26/2004        0        $      0.00   2/14/2011
 9,397    6/26/2005        0        $      0.00   2/14/2011
 9,396    4/3/2006         0        $      0.00   2/14/2011
28,190                     0        $      0.00
</TABLE>

<TABLE>
<S>                     <C>                        <C>                 <C>                    <C>             <C>
OPTION NO.: 001578      OPTION DATE: 2/7/2002      SHARES: 23,920      PRICE: $39.395000      PLAN: NQ93      TYPE: NQ
</TABLE>

<TABLE>
<CAPTION>
             V E S T I N G  S C H E D U L E                       T R A N S A C T I O N S           C A N C E L L A T I O N S
Granted   Full Vest   Exercisable   Total Price    Expires    Date     Type     Shares    Value     Date     Reason     Shares
<S>       <C>         <C>           <C>           <C>         <C>      <C>      <C>       <C>       <C>      <C>        <C>
     0    6/14/2002        0        $      0.00   2/7/2012
 7,973    6/26/2004        0        $      0.00   2/7/2012
 7,973    6/26/2005        0        $      0.00   2/7/2012
 7,974    4/3/2006         0        $      0.00   2/7/2012
23,920                     0        $      0.00
</TABLE>

<TABLE>
<S>                                         <C>
Total Options Exercisable:                        113,460
Total Price:                                $1,843,699.13
Total Potential Gain:                       $7,119,640.88
</TABLE>

</TEXT>
</DOCUMENT>
