Exhibit 10.1

 

STANDSTILL AGREEMENT

 

THIS STANDSTILL AGREEMENT (this “Agreement”), dated as of September 15, 2019
(the “Closing Date”), is entered into by and among each of the undersigned
investors named on the signature page hereof (each individually, an “Investor”
and collectively the “Investors” or “Investor Group”) and Winnebago
Industries, Inc., an Iowa corporation (“Parent”).   Capitalized terms used but
not defined in this Agreement shall have the respective meanings set forth in
the Purchase Agreement (as defined below).

 

WHEREAS, unless otherwise provided herein, references herein to the Investor
Group shall mean the members of such group jointly and severally;

 

WHEREAS, this Agreement is made by the undersigned pursuant to that certain
Stock Purchase Agreement dated September 15, 2019, by and among Octavius
Corporation, a Delaware Corporation, Parent, Newmar Corporation, an Indiana
corporation, Dutch Real Estate Corp., an Indiana corporation, New-Way Transport
Corp., an Indiana corporation, New-Serv, Inc., an Indiana corporation, the
“Sellers” identified therein, and Matthew Miller solely in his capacity as
Sellers Agent thereunder (the “Purchase Agreement”);

 

WHEREAS, pursuant to, and in accordance with, the Purchase Agreement, each
Investor will receive a portion of the Closing Stock Consideration on the
Closing Date; and

 

WHEREAS, as a condition to the willingness of Parent to enter into the
transactions described above, and as an inducement and in consideration thereof,
Parent has required that the Investors each agree, and the Investors have
agreed, to enter into this Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.                                      Certain Definitions.

 

(a)                                 The terms “Affiliate” and “Associate” have
the respective meanings set forth in Rule 12b-2 promulgated under the Exchange
Act of 1934, as amended (the “Exchange Act”), and shall include all persons that
at any time during the term of this Agreement become Affiliates or Associates of
any person referred to in this Agreement.

 

(b)                                 The terms “beneficial owner” and “beneficial
ownership” shall have the respective meanings as set forth in Rule 13d-3
promulgated under the Exchange Act.

 

(c)                                  The “Standstill Period” means as to each
Investor the period, from the Closing Date until the earlier of (i ) the first
anniversary of the Closing Date; and (ii) such date, if any, as the Investor
Group, their Affiliates and any Group of which any of them are a member, taken
collectively, cease to beneficially own at least five percent (5%) of the issued
and outstanding Parent Stock.

 

(d)                                 The term “Group” shall have the meaning set
forth in Section 13(d)(3) of the Exchange Act.

 

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(e)                                  “Parent Stock” means the common stock,
$0.50 par value per share of Parent.

 

(f)                                   The terms “person” or “persons” shall mean
any individual, corporation (including not-for-profit), general or limited
partnership, limited liability company, joint venture, estate, trust,
association, organization or other entity of any kind or nature, including a
Group.

 

(g)                                  “SEC” means the U.S. Securities and
Exchange Commission.

 

(h)                                 The terms “solicitation,” “proxy,” and
“participant” shall have the respective meanings ascribed to them under
Rule 14a-1 promulgated under the Exchange Act or otherwise under Schedule 14A
under the Exchange Act.

 

2.                                      Investors Standstill.  Each of the
members of the Investor Group agrees that, except as expressly provided by this
Agreement, during the Standstill Period, he will not, and he will cause each of
such person’s Affiliates, Associates or agents or other persons acting on his
behalf not to:

 

(a)                                 (i) nominate any person for election at any
meeting of shareholders of Parent or make a request of any director of Parent
for such director’s resignation or make a request of Parent to seek the
resignation of any of its directors, (ii) submit any proposal for consideration
at, or bring any other business before any meeting of shareholders of Parent,
directly or indirectly, or (iii) initiate, encourage or participate in any
“withhold” or similar campaign with respect to any meeting of shareholders,
directly or indirectly;

 

(b)                                 form, join in or in any other way
participate in a Group with respect to the Parent Stock (other than as members
of the Investor Group or a Group consisting solely of members of the Investor
Group, their Affiliates or Associates or any Group that may be deemed to exist
or arise solely by virtue of this Agreement) or deposit any shares of Parent
Stock in a voting trust or similar arrangement or subject any shares of Parent
Stock to any voting agreement or pooling arrangement with any person other than
any of the Investors;

 

(c)                                  solicit proxies or written consents of
shareholders, or otherwise conduct any nonbinding referendum with respect to any
shares of Parent Stock, or make, or in any way participate in, any solicitation
of any proxy to vote, or advise, encourage or influence any person with respect
to voting, any shares of Parent Stock with respect to any matter, or become a
participant in any solicitation, including any contested solicitation for the
election of directors of Parent;

 

(d)                                 seek to call, or to request the call of, a
special meeting of the shareholders of Parent, or seek to make, or make, a
shareholder proposal at any meeting of the shareholders of Parent or make a
request for a list of Parent’s shareholders (or otherwise induce or encourage
any other person to initiate such proposal or request) or otherwise acting
alone, or in concert with others, seek to control or influence or change the
management, Board of Directors, governance or policies of Parent;

 

(e)                                  effect or seek to effect (including,
without limitation, by entering into any discussions, negotiations, agreements
or understandings with any person), offer or propose (whether publicly or
otherwise) to effect, or cause or participate in, or in any way instigate,
support, encourage, assist or facilitate any other person to effect or seek,
offer or propose

 

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(whether publicly or otherwise) to effect or participate in (i) any acquisition
of any material assets or businesses of Parent or any of its subsidiaries,
(ii) any tender offer or exchange offer, merger, acquisition or other business
combination involving Parent or any of its subsidiaries, or (iii) any
recapitalization, change in capital structure, dividend or distribution, sale or
transfer of assets or securities, restructuring, liquidation, dissolution or
other extraordinary transaction with respect to the capital structure of Parent
or any of its subsidiaries; provided that this Section 2(e) shall not prohibit
any member of the Investor Group from voting his Parent Stock at any meeting of
the shareholders of Parent or from participating as a shareholder of Parent, on
the same basis as other shareholders, in a transaction described in clauses (i),
(ii) or (iii) approved by or recommended by the Board of Directors of Parent;

 

(f)                                   publicly disclose, or cause or facilitate
the public disclosure (including without limitation the filing of any document
or report with the SEC or any other governmental agency or any disclosure to any
journalist, member of the media or securities analyst) of any intent, purpose,
plan or proposal to obtain any waiver, or consent under, or any amendment of,
any of the provisions of this Section 2, or otherwise seek in any manner that
would require public disclosure by Parent or any of its Affiliates to obtain any
waiver, consent under, or any amendment of, any provision of this Agreement;

 

(g)                                  advise, encourage, support or influence any
person (except other members of the Investor Group) with respect to any of the
foregoing;

 

(h)                                 enter into any arrangements, understandings
or agreements (whether written or oral) with, or advise, finance, assist or
encourage, any other person for the purpose of engaging, or offering or
proposing to engage, in any of the foregoing; or

 

(i)                                     take or cause or induce any other person
to take any action inconsistent with any of the foregoing.

 

The provisions of this Section 2 will be of no further force and effect in the
event that (I) any person or Group shall have acquired more than 50% of the
outstanding voting equity securities of Parent or all or substantially all of
the assets of Parent or (II) if Parent is subject to a voluntary proceeding or,
if not dismissed within 30 days of filing, involuntary proceeding for
bankruptcy, insolvency, reorganization or liquidation and dissolution.

 

3.                                      Representations and Warranties of
Investor Group. Each member of the Investor Group, individually with respect to
itself-only, and not jointly and severally, hereby represents and warrants as
follows:

 

(a)                                 The Parent Stock beneficially owned by such
member consists solely of the Closing Stock Consideration issued to the such
member at the Closing and assuming the accuracy of the representations and
warranties, and compliance with the agreements, or Parent pursuant to the
Purchase Agreement such Parent Stock is free and clear of all liens, pledges,
security interests, charges, claims, encumbrances, agreements, options, voting
trusts, proxies and other arrangements or restrictions of any kind, other than
those imposed by this Agreement or the Lock-Up Letter (“Encumbrances”). Such
party has sole voting and dispositive power over all of the Parent Stock
beneficially owned by him, and sole power and authority to agree to all of the

 

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matters set forth in this Agreement, with no limitations, qualification or
restrictions on such rights, subject to applicable federal securities laws and
the terms of this Agreement.

 

(b)                                 Other than the Closing Stock Consideration
issued to such Investor at the Closing, such member does not have, and does not
have any right to acquire, any interest in any Parent Stock or other securities
of Parent or any rights, options or other securities convertible into or
exercisable or exchangeable (whether or not convertible, exercisable or
exchangeable immediately or only after the passage of time or the occurrence of
a specified event) for such securities or any obligations measured by the price
or value of any securities of Parent, including any swaps or other derivative
arrangements designed to produce economic benefits and risks that correspond to
the ownership of Parent Stock, whether or not any of the foregoing would give
rise to beneficial ownership and whether or not to be settled by delivery of
Parent Stock, payment of cash or by other consideration, and without regard to
any short position under any such contract or arrangement.

 

4.                                      Communications and Filings.  Each member
of the Investor Group shall promptly file (and may choose to file collectively)
a Schedule 13D reporting ownership of the Parent Stock and the entry into this
Agreement, responding to applicable items to conform to their obligations
hereunder, and appending or incorporating by reference this Agreement as an
exhibit thereto.  Investor shall provide to Parent a reasonable opportunity to
review such Schedule 13D in advance of filing, and shall consider in good faith
any reasonable comments of Parent.  Notwithstanding the foregoing, nothing in
this Agreement shall require any member of the Investor Group to report
beneficial ownership of Parent Stock beneficially owned by any other member of
the Investor Group.  Each member of the Investor Group does not, by entering
into this Agreement, admit that such member is a member of any Group with
respect to Parent Stock.

 

5.                                      Not Applicable to Bona Fide Management
Activities.  Notwithstanding any other provision of this Agreement, nothing in
this Agreement restricts in any way any action or omission taken in good faith
by an individual Investor solely in his capacity as a director or executive
officer of Parent or any of its subsidiaries and not as a shareholder of Parent.

 

6.                                      Incorporation of Purchase Agreement
Provisions.  The provisions of Section 8.3(a) (Specific Performance),
Section 9.1 (Notices), Section 9.3 (Interpretation; Construction), Section 9.5
(Governing Law), Section 9.6 (Jurisdiction, Venue and Waiver of Jury Trial),
Section 9.9 (Severability; Blue-Pencil) and Section 9.10 (Counterparts) of the
Purchase Agreement shall apply to this Agreement as if fully set forth herein,
mutatis mutandis.

 

7.                                      Successor and Assigns.  This Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective heirs, legal successors, executors, legal representatives, and
permitted assigns.  No party may assign any of its rights or obligations
hereunder without the prior written consent of the other parties hereto. 
Notwithstanding anything contained in this Agreement to the contrary, nothing in
this Agreement, expressed or implied, is intended to confer on any person (other
than, in the case of Parent, their respective successors and assigns and, in the
case of the Investor Group, the members of the Investor Group and their
respective successors, assigns, heirs, executors and administrators) any rights,
remedies, obligations or liabilities under or by reason of this Agreement.

 

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8.                                      Amendment and Modification; Waiver. 
This Agreement may only be amended, modified or supplemented by an agreement in
writing signed by the parties hereto.  No waiver by any party of any of the
provisions hereof shall be effective unless explicitly set forth in writing and
signed by the party so waiving.  Parent alone may waive any restriction set
forth in Section 2 of this Agreement with respect to any member of the Investor
Group without the consent of other members of the Investor Group and such waiver
need not apply to other members of the Investor Group.  Except as otherwise set
forth in this Agreement, no failure to exercise, or delay in exercising, any
rights, remedy, power or privilege arising from this Agreement shall operate or
be construed as a waiver thereof.; nor shall any single or partial exercise of
any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege.

 

9.                                      Entire Agreement.  This Agreement
constitutes the sole and entire agreement of the parties to this Agreement with
respect to the subject matter contained herein, and supersedes all prior and
contemporaneous understandings, agreements, representations and warranties, both
written and oral, with respect to such subject matter.

 

10.                               Effectiveness of this Agreement. 
Notwithstanding the earlier execution and delivery of this Agreement, the
effectiveness of this Agreement is conditioned on the Closing of the
transactions contemplated by the Purchase Agreement.  If the Closing shall
occur, this Agreement shall become effective concurrently with the Closing on
the Closing Date.  If the Purchase Agreement is terminated for any reason in
accordance therewith, this Agreement shall be null and void ab initio.

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

PARENT COMPANY:

 

 

 

Winnebago Industries, Inc.

 

 

 

By:

/s/ Michael J. Happe

 

Name:

Michael J. Happe

 

Its:

President and CEO

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Joseph Shoemaker

 

Joseph Shoemaker

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Joyce Helmuth

 

Joyce Helmuth

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Keith Weirich

 

Keith Weirich

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Kevin Bogan

 

Kevin Bogan

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Kirk Bates

 

Kirk Bates

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Lauranna Miller

 

Lauranna Miller

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Linda Mast

 

Linda Mast

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Lucretia Hochstetler

 

Lucretia Hochstetler

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Mahlon Miller

 

Mahlon Miller

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Marcus Miller

 

Marcus Miller

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Matthew McQuown

 

Matthew McQuown

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Matthew Miller

 

Matthew Miller

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Matthew Utley

 

Matthew Utley

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Ronald Stichter

 

Ronald Stichter

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ Gary Shuder

 

Gary Shuder

 

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IN WITNESS WHEREOF, the parties hereto have executed this Standstill Agreement
on the date first written above.

 

 

INVESTOR GROUP:

 

 

 

/s/ John Sammut

 

John Sammut

 

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