Document:

Exhibit

Exhibit 10.4

STAFFING AGREEMENT

This Agreement (“Agreement”) is effective as of April 13, 2016 (the “Effective Date”), by and between Cleco Power LLC, a Louisiana limited liability company(the “Company”), located at 2030 Donahue Ferry Road, Pineville, LA 71361, and Co Issuer Corporate Staffing, LLC, an Illinois limited liability company (“CICS”), located at 225 West Washington Street, Suite 2200 Chicago, IL  60606.

WHEREAS, CICS provides a management staffing service under certain limited circumstances; and

WHEREAS, the Company has requested that CICS provide such a service with respect to the Company under the circumstances set forth in Exhibit A attached hereto; and 

WHEREAS, CICS and the Company have agreed that CICS shall provide such service under the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the premises, the parties hereto hereby agree as follows. 

1.    Contract Period and Termination.  The term of this Agreement will be initially one (1) year from the Effective Date and will be automatically extended for successive one (1) year periods, unless at any time either party elects to terminate this Agreement and gives at least thirty (30) days’ prior written notice of termination to the other party.  

2.    Services.  The Company hereby retains CICS to identify and refer an individual or individuals to serve as an independent director, independent manager or special member of the Company (the “Director”) for the purposes and with the duties set forth on Exhibit A hereto, subject to the terms and conditions of this Agreement. CICS shall cause the Director to serve on the Board of Directors, Board of Managers or other governing body of the Company (the “Board”).  The Director shall be an employee of CICS, and shall serve the Company in his or her individual capacity subject to approval of the Company.  In the event a Director referred by CICS is at any time unable to serve on the Board, CICS shall identify and refer a substitute Director for approval by the Company subject to the terms and conditions of this Agreement.  

3.    Fees.  During the term of this Agreement, the Company shall pay CICS on the Effective Date and on every anniversary of the Effective Date thereafter, the then-current annual fee in effect.  The initial annual fee shall be $3,750.  Such annual fee may be reviewed and revised on an annual basis as agreed by the Company and CICS.  In the event of an early termination of this Agreement by CICS, CICS will provide a pro rata refund of any fees paid in advance for the year in which such termination is effectuated.  In addition, the Company shall promptly reimburse CICS or the Director, as applicable, for any expense incurred under or relating to this Agreement or the services of the Director, including the reasonable fees and expenses of outside counsel or other advisors retained by them or by CICS on behalf of the Director.  

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4.    Obligations of the Company.  The Company agrees to take each of the following actions:

a.    Not later than the Effective Date, make any amendment to its Articles of Organization, Articles of Incorporation, Bylaws or other charter documents, and its Operating Agreement, as applicable, to fully and completely conform those documents, and make those documents consistent, with the terms and conditions of this Agreement;
    
b.    In the event any matter comes before the Board for its consideration not contemplated by Exhibit A hereto, the Company agrees, upon the request of the Director, and at his or her discretion, to provide the Director with reasonable time and assistance to investigate the matter before the Board and perform adequate due diligence in connection therewith.  Such due diligence may include, at CICS’s reasonable discretion, the engagement of independent legal counsel or other advisors to provide additional guidance and assistance to the Director; and

d.    Upon termination of this Agreement for any reason, promptly take all required action to remove the Director from the Board.

5.    Indemnification by Company.  To the fullest extent permitted under law and in accordance with the Company’s organizational documents, the Company agrees to indemnify and hold harmless CICS and the Director from and against any and all losses, claims, causes of action, injuries, damages, costs and/or expenses, including reasonable attorney’s fees and disbursements, arising from third party claims against CICS or the Director arising from or related to its or his/her performance of its or his/her duties under this Agreement, except to the extent such claims arise from or are attributable to CICS’s or the Director’s willful misconduct or gross negligence, or the breach of this Agreement by CICS.

6.    Other Relationships. The Company acknowledges that the Director may provide services of the type contemplated by this Agreement to others, and that, subject to the provisions of Section 7 (Confidentiality) of this Agreement, nothing contained in this Agreement will be construed to limit or restrict the Director in providing those services to others.  However, to ensure that the Company is able to take any action required as a result of the Director’s service on the board of directors or any board committee of other entities, including but not limited to making any required filings with or obtaining consent from the Federal Energy Regulatory Commission, CICS shall, or shall cause the Director to, provide the Company with thirty days’ notice of his/her intent to join the board of directors or any committee of another entity.  

7.    Confidentiality.  Subject to exceptions mutually agreed upon by the parties to this Agreement in advance and in writing, the terms and conditions of this Agreement shall remain confidential and protected from disclosure except as required by law or regulation, in relation to a lawful subpoena, or as may be necessary for purposes of disclosure to accountants, financial advisors or other experts, who shall be made aware of and agree to be bound by the confidentiality provisions hereof. The Director’s relationship with the Companies creates a 

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relationship of confidence and trust between the Director and the Company (and its affiliates).  CICS shall cause the Director to keep in confidence and trust all such information deemed to be confidential, and not use or disclose any such information except as directed by the Company.

8.    Covenant Not to Sue.  The Company represents, agrees and covenants that it will not file any complaint, proceeding, lawsuit, or other legal or equitable action against CICS or the Director based upon or arising out of any of the services provided by CICS hereunder or by the Director, other than for reason of alleged willful misconduct or gross negligence by CICS or the Director, or the breach by CICS of this Agreement.

9.    Additional Representations, Warranties and Covenants of Company and CICS.  Each of the Company and CICS represents and warrants to and covenants with the other party that as of the Effective Date:  (i) it has the right, power, and authority to enter into and to perform its obligations under this Agreement; (ii) the execution, delivery and performance by it of this Agreement have been duly authorized by all necessary action on its part under its organizational documents; and (iii) this Agreement constitutes its legal, valid, and binding obligation, enforceable against it in accordance with its terms. In addition, the Company represents and warrants to and covenants with CICS that it has taken all appropriate acts under its charter documents, bylaws, or operating agreement, as applicable, to duly appoint the Director to serve on the Board.  

10.    Independent Contractor Status and Authority.  Each party to this Agreement hereby agrees, and represents and warrants that it is an independent contractor and is not any other party’s agent or employee or partner or joint venturer for any purpose whatsoever.

11.    Governing Law.  This Agreement and the rights and duties of the parties hereto shall be governed by the laws of the State of Delaware (without regard to principles of conflicts of law).

12.    Additions or Modifications.  No additions or modifications from the terms and conditions of this Agreement will be binding upon either party hereto unless agreed to in writing by each party hereto.

13.    Assignment.  No party may assign its rights or delegate its obligations under this Agreement without the prior written consent of the other party.

14.    Notices.  All notices, requests, consents and invoices required or permitted under this Agreement shall be in writing and delivered personally or sent by mail to the applicable party at the addresses set forth on the first page of this Agreement or at such other address as shall be given to each other party in writing.  In addition, the Company shall promptly provide copies of any notices sent to the Director, including copies of any legal process served on the Director or the Company, to the following address:

If to CICS:
Co-Issuer Corporate Staffing, LLC
225 W Washington Street

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Suite 2200
Chicago, Illinois  60606
312-775-1007
312-924-0201 (Fax)
Melissa@cics-llc.com

If to the Company:
Cleco Power LLC
2030 Donahue Ferry Road
Pineville, LA 71361
Attention: General Counsel    
Phone: 318-484-7400
Fax:
Email: Julia.callis@cleco.com

15.    No Damages.  The Company agrees that in no event shall CICS or the Director be liable for lost profits, third-party claims or consequential or exemplary damages, or for any matters relating to any actions taken by the Company prior to the Effective Date. 

16.    Entire Agreement.  This Agreement represents the entire understanding of the parties with respect to the specific subject matter of this Agreement and supersedes all previous understandings, written or oral, between the parties with respect to such subject matter.

17.    Counterparts.  This Agreement may be signed in more than one counterpart, each of which shall be binding and all of which taken together shall be one and the same agreement.

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IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed as of the date first above written.    

                     
	
		
	CLECO POWER LLC:

	 
	 

	 
	 

	By:
	/s/  Julia Callis

	Name: Julia Callis

	Its: General Counsel

	 
	 

	 
	 

	 
	 

	CO-ISSUER CORPORATE STAFFING, LLC

	 
	 

	 
	 

	/s/ Melissa M. Stark

	By: Melissa M. Stark

	Its: President

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EXHIBIT A

Name and Description of Transaction:

Services Provided: 

Provide 1 Director to the Company

6Exhibit 10.1

 

AMENDMENT TO EMPLOYEE MATTERS AGREEMENT

 

This Amendment (this “Amendment”) to the Employee Matters Agreement, dated as of October 27, 2015, by and among Starwood Hotels & Resorts Worldwide, Inc., a Maryland corporation and the sole stockholder of Vistana (“Starwood”), Vistana Signature Experiences, Inc., a Delaware corporation and a wholly-owned Subsidiary of Starwood (“Vistana”), and Interval Leisure Group, Inc., a Delaware corporation (“ILG”) (the “Employee Matters Agreement”), is made as of April 18, 2016 (“Execution Date”).  Capitalized terms used but not defined in this Amendment have the meanings ascribed to them in the Employee Matters Agreement.

 

RECITALS

 

WHEREAS, in connection with the Agreement and Plan of Merger, dated as of October 27, 2015, entered into by and among Starwood, Vistana, ILG, and Iris Merger Sub, Inc., a Delaware corporation and a wholly-owned Subsidiary of ILG (the “Merger Agreement”), the Parties contemporaneously entered into the Employee Matters Agreement; and

 

WHEREAS, the Parties desire to amend certain rights and obligations of the Parties under the Employee Matters Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereof, and intending to be legally bound hereby, the Parties agree as follows:

 

AGREEMENT

 

Section 1.01                             Business Transfer Date.  When used in the Employee Matters Agreement, the term “Business Transfer Date” shall be deemed to be a reference to “Distribution Date,” as such term is defined in the Separation Agreement.

 

Section 1.02                             Retirement Plans.  Notwithstanding the provisions of Section 2.01(e)(iv) of the Employee Matters Agreement to the contrary, for the period from the Closing Date through December 31, 2016, the ILG Retirement Plan shall provide the Vistana Employees with the opportunity to receive the same rate of employer matching contributions and the same vesting schedule as provided under the Starwood Retirement Plan to such employees as of the date hereof; provided, however, that service may be credited for purposes of vesting or eligibility under the ILG Retirement Plan using the methodology currently provided by such ILG Retirement Plan.

 

Section 1.03                             Nonqualified Plans.  Notwithstanding the first two sentences of Section 2.03(b) of the Employee Matters Agreement, ILG shall amend its existing nonqualified deferred compensation plan (the “ILG Deferred Compensation Plan”) as of the Closing Date to provide for participation in the ILG Deferred Compensation Plan by Vistana Employees who were participants in the Starwood Deferred Compensation Plan immediately prior to the Closing Date

 

 

on terms and conditions (other than with respect to investment options) that are substantially similar to what was provided to them under the Starwood Deferred Compensation Plan and pursuant to the remainder of Section 2.03 of the Employee Matters Agreement. Notwithstanding the foregoing, neither ILG nor Vistana shall be under any obligation to offer any employees the opportunity to make future deferral elections under the ILG Deferred Compensation Plan, and if any future deferral elections are offered under the ILG Deferred Compensation Plan, neither ILG nor Vistana shall be under any obligation to make deferral elections available under the same terms as applied under the Starwood Deferred Compensation Plan.  References in the Employee Matters Agreement to the “Vistana Deferred Compensation Plan” shall be deemed to be references to the “ILG Deferred Compensation Plan,” as amended.  References to the actions to be taken “prior to the Closing Date” in the first sentence of each of Sections 2.03(c)(A) and 2.03(c)(B) of the Employee Matters Agreement shall be deemed to mean “as of the Closing Date.”

 

Section 1.04                             Flexible Benefit Plan.  Notwithstanding the provisions of Sections 2.05(a) and 2.05(b) of the Employee Matters Agreement to the contrary, in the event that the Closing Date has not occurred as of April 1, 2016, then effective as of such date Vistana Employees shall cease to participate in the Starwood Flexible Benefit Plan, and Vistana shall establish a new flexible benefit plan (the “Vistana Flexible Benefit Plan”) for the benefit of Vistana Employees.  The Vistana Flexible Benefit Plan shall be similar to the Starwood Flexible Benefit Plan, and shall be subject to the review and approval of ILG prior to its adoption, which consent shall not be unreasonably withheld.  In the event the foregoing applies, references in the Employee Matters Agreement to the “ILG Flexible Benefits Plan” shall be deemed to be references to the new Vistana Flexible Benefits Plan, and the Vistana Flexible Benefits Plan shall be deemed a Vistana Benefit Plan for purposes of the Merger Agreement.  Starwood will be responsible for all liabilities with respect to any Vistana Employee or Former Vistana Employee and their dependents, regardless of when such claims are filed and/or paid under the Starwood Flexible Benefits Plan with respect to all claims incurred on or before March 31, 2016.  The amounts Starwood has previously received for health and welfare coverage under the Starwood Flexible Benefits Plan for Vistana Employees or Former Vistana Employees through March 31, 2016 shall be considered full payment for such coverage and Vistana shall not be obligated to make any further payments toward such coverage.  Vistana will be responsible for all liabilities with respect to any Vistana Employee or COBRA Participant and their dependents, regardless of when such claims are filed and/or paid, under the Vistana Flexible Benefits Plan with respect to all claims incurred on or after April 1, 2016 and Starwood shall not be responsible for any “true up” payment with respect to such claims, including for the period that Vistana remains part of the Starwood controlled group.  Vistana shall not be required to pay Starwood a monthly amount for health and welfare coverage for Vistana Employees or Former Vistana Employees beginning with the month of April, 2016.

 

 

Section 1.05                             Dependent Care Flexible Spending Account.  Notwithstanding the provisions of Section 2.05(c) of the Employee Matters Agreement to the contrary, ILG shall not be required to establish nor cause to be established an ILG FSA effective as of or following the Closing Date.  Starwood shall remain liable for all claims and liabilities under the Starwood FSA with respect to any Vistana Employee or Former Vistana Employee.  Furthermore, Vistana Employees shall not be eligible to participate in a dependent care spending account program on or after April 1, 2016; provided, however, that in its sole discretion, ILG may establish a flexible spending account for the benefit of Vistana Employees on or after April 1, 2016.

 

Section 1.06                             Continuation Coverage.  Notwithstanding the provisions of Section 2.05(d) of the Employee Matters Agreement to the contrary, in the event that the Closing Date has not occurred as of April 1, 2016, the Vistana Flexible Benefits Plan shall be solely responsible for providing and meeting the COBRA continuation coverage requirements for all Vistana Employees and all Former Vistana Employees, as well as their “qualified beneficiaries” (as defined in COBRA), with respect to all claims incurred on or after April 1, 2016.  Furthermore, all COBRA premiums for coverage for such individuals beginning on April 1, 2016 shall be paid to Vistana or the Vistana Flexible Benefits Plan.

 

Section 1.07                             Health Reimbursement Account.  Notwithstanding the provisions of Section 2.05(e) of the Employee Matters Agreement to the contrary, in the event that the Closing Date has not occurred as of April 1, 2016, Vistana Employees will cease to participate in the Starwood HRA as of such date, and Vistana shall establish a new health reimbursement account (the “Vistana HRA”) for the benefit of Vistana Employees.  The Vistana HRA shall have similar terms and provide the same level of benefits as the Starwood HRA, and shall be subject to the review and approval of ILG prior to its adoption which consent shall not be unreasonably withheld.  In connection with providing the same level of benefits, to the extent permitted by applicable Law, the Vistana HRA shall provide that the account balances for each Vistana Employee who is a participant under the Vistana HRA shall be increased by any balance that still remains under the Starwood HRA for such participant after the end of the run out period under the Starwood HRA for paying claims incurred in the 2015-2016 plan year to the same extent as such amount would have remained available for such participant’s use under the Starwood HRA during the 2016-2017 plan year.  In the event the foregoing applies, references in the Employee Matters Agreement to the “ILG HRA” shall be deemed to be references to the new Vistana HRA, and the Vistana HRA shall be deemed a Vistana Benefit Plan for purposes of the Merger Agreement.  In the event the Vistana HRA is established pursuant to this Section 1.07, (i) Starwood shall be responsible for all liabilities with respect to any Vistana Employee or Former Vistana Employee and their dependents, regardless of when such claims are filed and/or paid under the Starwood HRA, and (ii) Vistana shall be responsible for all liabilities with respect to any Vistana Employee or Former Vistana Employee and their dependents, regardless of when such claims are filed, under the Vistana HRA with respect to all claims incurred on or after April 1, 2016.

 

 

Section 1.08                             Vacation and Sick Pay Liabilities.  Notwithstanding the provisions of Section 2.07 of the Employee Matters Agreement to the contrary, on and after the Closing Date, accrual of vacation and sick leave in respect of each Vistana Employee working in California, shall be according to an accrual schedule that is substantially similar to Starwood’s accrual schedule as in effect immediately prior to the Closing Date, rather than one which is identical.

 

Section 1.09                             Full Force and Effect.  Except as expressly set forth in this Amendment, this Amendment does not, by implication or otherwise, alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Merger Agreement or the Employee Matters Agreement, which are hereby incorporated by reference and shall remain in full force and effect.

 

Section 1.10                             Counterparts.  This Amendment may be executed in two or more counterparts (including by electronic or .pdf transmission), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery of any signature page by facsimile, electronic or .pdf transmission shall be binding to the same extent as an original signature page.

 

Section 1.11                             Updates to Vistana Disclosure Schedule.  If the Vistana Flexible Benefit Plan and Vistana HRA are established pursuant to Sections 1.04 and 1.07 hereof, they will be deemed to be listed as a Vistana Benefit Plan on Section 5.13(a) of the Vistana Disclosure Schedule.

 

Section 1.12                             Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the conflicts of laws principles thereof.

 

[Signature page follows]

 

 

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the Execution Date.

 

	
 
    	
STARWOOD   HOTELS & RESORTS WORLDWIDE, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Thomas B.   Mangas 
    
	
 
    	
Name:
    	
Thomas B. Mangas 
    
	
 
    	
Title:
    	
Chief Executive Officer
    

 

[Signature Page to Amendment to Employee Matters Agreement]

 

 

	
 
    	
VISTANA SIGNATURE   EXPERIENCES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Thomas B.   Mangas 
    
	
 
    	
Name:
    	
Thomas B. Mangas 
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[Signature Page to Amendment to Employee Matters Agreement]

 

 

	
 
    	
INTERVAL LEISURE GROUP, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeanette E.   Marbert
    
	
 
    	
Name:
    	
Jeanette E.   Marbert
    
	
 
    	
Title:
    	
Executive Vice   President and Chief Operating Officer
    

 

[Signature Page to Amendment to Employee Matters Agreement]

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