Document:

exv10w4

 

EXHIBIT 10.4

AGREEMENT TO ASSIGN TRADEMARK RIGHTS

AND LIMITED CONSENT TO USE CENTEX TRADEMARKS

     THIS AGREEMENT (this “Agreement”) is entered into as of                   ,
2003 (the “Effective Date”) by and between Centex Corporation, a corporation
organized under the laws of the State of Nevada (“Centex”), and Cavco
Industries, Inc., a corporation organized under the laws of the State of
Delaware (“Cavco”). Centex and Cavco are hereinafter referred to as the
“Parties.”

     WHEREAS, the Parties have entered into a Distribution Agreement dated as
of                        , 2003 (the “Distribution Agreement”); and

     WHEREAS, as part of the consideration of the Distribution Agreement,
Centex desires to assign, and Cavco desires to acquire, all right, title, and
interest in and to a number of trademarks that are owned by Centex.

     NOW, THEREFORE, for and in consideration of the mutual covenants contained
herein, and for other good and valuable consideration, receipt of which each
party hereby acknowledges, the Parties hereby agree as follows:

1. DEFINITIONS

     1.1 “Assigned Marks” means the trademarks listed in Exhibit 1 and all
Intellectual Property Rights therein.

     1.2 “Intellectual Property Rights” means copyrights, patents (including
patent improvements), patent applications, trade secrets, trademarks, trade
names or service marks, pending trademark applications or existing trademark
registrations with the United States Patent and Trademark Office, or other
intellectual property rights (including common law rights) under applicable
law.

2. GRANT OF RIGHTS

     2.1 Centex agrees to assign all of Centex’s right, title and interest in
the Assigned Marks to Cavco as set forth in this Agreement. In order to perfect
such ownership transfer, contemporaneously with the execution of this
Agreement, Centex has executed a separate assignment document to be recorded
with the United States Patent and Trademark Office. Centex shall reasonably
cooperate with Cavco in the filing and prosecution of the Assigned Marks if
necessary.

     2.2 Centex promptly shall deliver to Cavco all documentation pertaining to
the Assigned Marks, including copies of all correspondence to or from examining
authorities regarding such Assigned Marks, trademark searches pertaining to
such Assigned Marks, and all correspondence with any attorney involved in the
preparation and/or prosecution of the Assigned Marks.

 

 

3. LIMITED CONSENT TO USE CENTEX TRADEMARK

     3.1 As soon as practicable, and in any event within six (6) months after
the Effective Date, Cavco, at Cavco’s expense, shall remove any and all
exterior and interior signs and identifiers which refer or pertain to Centex.
After such period, Cavco shall not use or display the name “Centex” or
variations thereof, or other trademarks, tradenames, logos or identifiers using
such name or otherwise owned by or licensed to Centex which have not been
assigned or licensed to Cavco (collectively, the “Centex Trademarks”), without
the prior written consent of Centex. However, nothing contained in this
Agreement shall prevent Cavco from using the Centex name in public filings with
governmental authorities, materials intended for distribution to Cavco
stockholders, or any other communication in any medium which describes the
relationship between the Parties.

     3.2 Cavco shall have the right to use existing products, supplies and
documents (including, but not limited to, purchase orders, forms, labels,
shipping materials, catalogues, sales brochures, operating manuals,
instructional documents and similar materials, and advertising material) being
transferred to it which have imprinted thereon or otherwise use a Centex
Trademark, for a period not to exceed six (6) months following the Effective
Date. However, Cavco agrees (i) to use only such supplies and documents
existing in inventory as of the Effective Date and (ii) not to order or utilize
in any manner any additional supplies and documents which have imprinted
thereon or otherwise use a Centex Trademark.

     3.3 Cavco acknowledges and agrees that Centex does not consent to any use
of the Centex Trademarks by Cavco other than as provided above, and that no
license to use the Centex Trademarks has been granted to Cavco by Centex by
this Section 3. The provisions of this Section 3 provide only a limited consent
from Centex to Cavco to continue to display the Centex Trademarks on existing
signage and other items until the earlier of (i) six months from the date of
this Agreement; or (ii) the date Cavco fully complies with the provisions of
Section 3.1, and for no other reason.

4. WARRANTIES

     4.1 Centex represents and warrants that: (a) it is a corporation duly
organized, validly existing, and in good standing under the laws of the State
of Nevada and has full power and authority to enter into this Agreement and
perform its obligations hereunder; (b) immediately prior to the execution of
this Agreement, Centex owns all right, title and interest in and to the
Assigned Marks; and (c) it has the legal right to grant all the rights it
purports to grant and to convey all the rights it purports to convey pursuant
to Section 2.1 above.

     4.2 Cavco represents and warrants that: (a) it is a corporation duly
organized, validly existing, and in good standing under the laws of the State
of Delaware and has full power and authority to enter into this Agreement and
perform its obligations hereunder.

 

 

5. GENERAL

     5.1 Entire Agreement. This Agreement constitutes the entire agreement of
the Parties with respect to the subject matter hereof, and to the extent that
this agreement is inconsistent with any prior agreement(s) between the Parties,
the terms of this agreement are to control.

     5.2 Amendment. This Agreement shall not be amended or otherwise modified
except by a written agreement dated subsequent to the date of this Agreement
and signed on behalf of Centex and Cavco by their respective duly authorized
representatives.

     5.3 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas.

     5.4 Assignment. This Agreement shall be binding upon and inure to the
benefit of the Parties hereto and the Parties’ respective successors and
assigns.

     5.5 No Waiver. No waiver of any breach of any provision of this Agreement
shall constitute a waiver of any prior, concurrent or subsequent breach of the
same or any other provisions hereof, and no waiver shall be effective unless
made in writing and signed by an authorized representative of the waiving
party.

     5.6 Savings Clause. If any provision of this Agreement shall be held by a
court of competent jurisdiction to be illegal, invalid or unenforceable, the
remaining provisions shall remain in full force and effect.

     5.7 Further Assurances. The Parties agree to take such further action and
execute, deliver and/or file such documents or instruments as are necessary to
carry out the terms and purposes of this Agreement.

     5.8 Section Headings. The section headings used in this Agreement are
intended for convenience only and shall not be deemed to supersede or modify
any provisions.

     IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
Effective Date.

	 	 	 
	CENTEX CORPORATION	 	
CAVCO INDUSTRIES, INC.
	 
	 	 	 
	 
	By:	 	
By:
	
	 	

	 
	Its	 	
Its
	
	 	

 

 

EXHIBIT 1

ASSIGNED MARKS

CAVCO

CAVCO HOMES

SUNBUILT

VILLAGER

SUN VILLA

CEDAR COURT

WESTCOURT

WINROCK

CATALINA

CAVCO GOLD KEY GUARANTEE

SAGUARA

ELITE

DESERT ROSE

SUNBURST

CAVCO CABINS

AAA HOMES

CAVCO HOME CENTERexv10w5

 

     EXHIBIT 10.5

EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (“Agreement”) is entered into as
                           , 2003 by and between CAVCO INDUSTRIES, INC., a Delaware
corporation (the “Company”), and JOSEPH H. STEGMAYER (the “Executive”).

WITNESSETH:

     WHEREAS, the Board of Directors of Centex Corporation (“Centex”) has
determined that it would be advisable and in the best interests of Centex for
Centex to organize the Company, and to transfer substantially all of the
business, operations, assets and liabilities related to Cavco Industries, LLC
to the Company; and

     WHEREAS, the Company has agreed to assume substantially all of the
business, operations, assets and liabilities related to Cavco Industries, LLC;
and

     WHEREAS, the Board of Directors of Centex has also determined that it
would be advisable and in the best interests of Centex for Centex to distribute
on a pro-rata basis to the holders of record of Centex common stock, par value
$0.25 per share (the “Centex Common Stock”), without any consideration being
paid by such holders, all of the outstanding shares of the Company’s common
stock, par value $.01 per share (the “Cavco Common Stock”), owned by Centex
(the “Distribution”); and

     WHEREAS, for United States federal income tax purposes, the Distribution
is intended to qualify as a tax-free spin-off within the meaning of Sections
355 and 368(a)(1)(D) of the United States Internal Revenue Code of 1986, as
amended (the “Code”); and

     WHEREAS, from and after the date (the “Effective Date”) upon which the
Distribution is effectuated, the Company desires to employ the Executive, and
the Executive is willing to accept such employment, all upon the terms and
conditions set forth herein.

     NOW, THEREFORE, in consideration of the premises, the terms and provisions
set forth herein, the mutual benefits to be gained by the performance thereof
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, and subject to the Distribution being effectuated on
or before June 30, 2003, the parties hereto agree as follows:

     SECTION 1. Definitions. For purposes of this Agreement, the following
definitions shall apply:

		
	 	“Average Bonus” shall mean the result obtained by dividing by two the sum
of the bonuses, if any, paid to the Executive pursuant to Subsection 5(b)
below in

 

 

		
	 	respect of the two (2) fiscal years next preceding the fiscal year in
which the Average Bonus is due. If the employment of the Executive is
terminated prior to the conclusion of two (2) fiscal years under the Term
of this Agreement, and payment of the Average Bonus is due to Employee,
then the amount paid will be $                 .
	 
	 	“Board” shall mean the Board of Directors of the Company.
	 
	 	“Breach” shall mean a breach by either the Executive or the Company, as
the case may be, of a term of this Agreement which breach remains uncured
for 15 days after written notice is received by the party in breach from
the party asserting the breach.
	 
	 	“Change in Control” shall be deemed to have occurred if, subsequent to
the Distribution: (i) the Company merges or consolidates with any other
corporation (other than a wholly-owned subsidiary) and is not the
surviving corporation (or survives only as a subsidiary of another
corporation), (ii) the Company sells all or substantially all of its
assets to any other person or entity (other than a wholly-owned
subsidiary), (iii) the Company is dissolved, or (iv) a third person,
including a “group” as defined in Section 13(d)(3) of the Securities
Exchange Act of 1934, becomes the beneficial owner of shares of Cavco
Common Stock having 50% or more of the total number of votes that may be
cast for the election of directors of the Company; or as a result of, or
in connection with, a contested election for directors, the persons who
were directors of the Company before such election shall cease to
constitute a majority of the Board of the Company. Notwithstanding any
provision of this paragraph, an event, transaction, or corporate action
described in this Subsection which would otherwise be deemed a Change in
Control, will not be deemed a Change in Control if: it is a management
led or supported transaction by persons who were the directors of the
Company and persons who were the executive officers of the Company as of
six months prior to such event; and if immediately after such event such
persons constitute a majority of the directors and constitute a majority
of executive officers for, and own in the aggregate at least fifteen
percent of the voting securities or interest of, the Company or the
surviving or resulting corporation or the parent of the resulting
corporation.
	 
	 	“Common Stock” means the common stock of the Company, par value $.01.
	 
	 	“Disability” shall mean the Executive’s inability, by reason of a mental
or physical impairment, to perform his duties and responsibilities, as
set forth in Section 4, below for a period of at least six (6)
consecutive months.
	 
	 	“Termination for Cause” shall mean the Company’s termination of the
Executive’s employment pursuant to a determination by the Board, in its
sole and absolute discretion, but acting in good faith, that the
Executive is guilty of engaging in acts

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	 	during the Term of this Agreement that constitute theft, dishonesty,
fraud, or embezzlement, or that constitute willful and repeated
insubordination.
	 
	 	“Termination Without Cause” shall mean the Company’s termination of the
Executive’s employment other than a Termination for Cause. In addition,
if the Board alters the Executive’s duties so that he no longer renders
such services of an executive and administrative character to the Company
as are usual and customary in the case of the chief executive officer of
an entity such as the Company, and the Executive thereafter terminates
employment with the Company, such termination by the Executive shall be
deemed not a voluntary termination of employment by the Executive but a
Termination Without Cause.

     All other defined terms set forth in the text of this Agreement will have
the meaning assigned to them in this Agreement.

     SECTION 2. Employment. From and after the Effective Date, the Company will
employ the Executive upon the terms and conditions set forth herein.

     SECTION 3. Term. Subject to the terms and conditions set forth herein, the
Executive shall be employed for a term commencing on the Effective Date and
ending on the third anniversary thereof (the “Initial Term”), unless earlier
terminated as provided in this Agreement. Thereafter, the term of this
Agreement shall automatically be extended for successive one (1) year periods
(“Renewal Terms”) unless either the Board or the Executive gives written notice
to the other at least ninety (90) days prior to the end of the
Initial Term or any Renewal Term, as the case may be, of its or his intention
not to renew the term of this Agreement. The Initial Term and any Renewal Terms
of this Agreement shall be collectively referred to as the “Term.”

     SECTION 4. Duties and Responsibilities.

     (a)  The Executive shall initially serve in the capacity of Chairman of the
Board, President and Chief Executive Officer of the Company, subject to the
direction of the Board of Directors of the Company. The Executive’s duties
under this Agreement shall consist of the performance of such services as are
consistent with the responsibilities of said office and such other services
commensurate with his position as a senior executive of the Company as may be
assigned to him from time to time by the Board. Such duties shall be performed
within the policies and guidelines established from time to time by the Board,
subject at all times to the ultimate control and direction of the Board.

     (b)  At all times during the Term, the Executive shall devote substantially
all of his business time, attention and energies to the performance of his
duties under this Agreement, and shall not undertake or be engaged in any other
activities, whether or not pursued for gain, profit or other pecuniary
advantage, which could impair his ability to fulfill his duties to the Company
under this Agreement, without the prior written consent

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of the Board. Notwithstanding the foregoing, the Company agrees that it
shall not be a violation of this paragraph for the Executive to provide
services as a part-time employee-consultant to Centex through March 31, 2005.

     (c)  The Executive shall perform his duties under this Agreement with
fidelity and loyalty, to the best of his ability, experience and talent and in
a manner consistent with his fiduciary responsibilities.

     SECTION 5. Compensation.

     (a)  Base Salary. During the Term, the Company shall pay a salary (the
“Base Salary”) of $225,000 per annum to the Executive, payable in accordance
with the general payroll practices of the Company in effect from time to time.
The Company shall review the Base Salary then being paid to the Executive at
such times as the Company regularly reviews the compensation being paid to its
executives generally (but no less frequently than once each year). Upon
completion of such review, the Company may in its sole discretion adjust the
Executive’s then current Base Salary; provided, however, that the Company may
not decrease the Executive’s then current Base Salary without the prior written
consent of the Executive.

     (b)  Bonus. In addition to the payment of Base Salary, for each fiscal year
of the Company during the Term, the Executive shall be awarded a bonus in an
amount equal to (i) three percent (3%) of the first $2.5 million of pretax
income of the Company, plus (ii) 6% of the pretax income of the Company above
$2.5 million (if any). For purposes of this paragraph, the amount of pretax
income of the Company for the relevant time periods shall be determined by the
Board of Directors of the Company.

     (c)  Stock Options. In connection with the Distribution, the Company has
established or will establish a stock incentive plan (the “Plan”). As soon as
reasonably practicable following the Effective Date, the Company shall reserve
a sufficient number of shares to grant to the Executive the following stock
options in accordance with the Plan:

		
	 	     (i) Initial Grant. As soon as reasonably practicable following the
Effective Date, the Company will grant the Executive an initial
non-qualified option to purchase a number of shares of Cavco Common Stock
equal to 6% of all then issued and outstanding Cavco Common Stock. The
Initial Grant shall be subject to pro rata vesting over a three-year
period (i.e., 25% on the grant date, with the remainder becoming vested
in cumulative 25% increments on each of the first through third
anniversaries of the grant date).
	 
	 	     (ii) First Anniversary Grant. As soon as reasonably practicable
following the first anniversary of the Distribution, the Company will
grant the Executive a non-qualified option to purchase a number of shares
of Cavco Common Stock not less than 1% of the then issued and outstanding
Cavco

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	 	Common Stock. The vesting schedule of this option grant will match
the vesting schedule of the initial grant.
	 
	 	     (iii) Second Anniversary Grant. As soon as reasonably practicable
following the second anniversary of the Distribution, the Company will
grant the Executive an additional non-qualified option to purchase a
number of shares of Cavco Common Stock not less than 1% of the then
issued and outstanding Cavco Common Stock. The vesting schedule of this
option grant will match the vesting schedule of the initial grant.

     Each such option grant shall be memorialized in a written agreement. The
per share exercise price will be equal to the fair market value of Cavco Common
Stock on the date of the grant, as determined in accordance with the Plan. When
calculating the number of outstanding shares of Cavco Common Stock for purposes
of the Initial, First Anniversary and Second Anniversary Grants, the Restricted
Stock awarded to the Executive in accordance with Subsection 5(d) below shall
be included in the total number of outstanding shares of Cavco Common Stock.

     (d)  Restricted Stock. As soon as reasonably practicable, the Company shall
reserve a sufficient number of shares to grant to the Executive following the
Effective Date a number of shares of Cavco Common Stock (the “Restricted
Stock”) having a fair market value on the date of the grant equal to the sum of
One Million ($1,000,000) Dollars. Upon receipt of the required approval by the
Company’s Board, the Executive will receive said grant of Restricted Stock,
which shall be reflected in a written agreement. The Restricted Stock shall be
ratably released from restriction (or “vested”) over a three-year period (i.e.,
25% on the grant date, with the remainder becoming vested in cumulative 25%
increments on each of the first through third anniversaries of the grant date).
Except as provided herein, vesting of this award is dependent on the
Executive’s continued employment with the Company.

     (e)  Expense Reimbursement. During the Term, the Executive shall be
entitled to receive prompt reimbursement for all reasonable out-of-pocket
expenses incurred in the reasonable discretion of the Executive in connection
with the due and proper performance of his duties hereunder in accordance with
the Company’s regular practices with respect to other similarly situated
executives of the Company.

     (f) Incentive, Savings and Retirement Plans. During the Term, the
Executive shall be entitled to participate in all incentive, savings and
retirement plans (whether or not qualified under the Code) as amended,
established or adopted and maintained by the Company from time to time, in
accordance with the Company’s regular practices applicable to other similarly
situated executives of the Company. The provisions of this paragraph (f) shall
not affect in any way the rights of the Company to amend or terminate any such
incentive, savings or retirement plans in accordance with the terms of such
plans and the provisions of applicable law.

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     (g)  Group Benefit Plans. During the Term, the Executive shall be entitled
to participate in all group benefit plans (including, but not limited to,
disability, accident, medical, life insurance and hospitalization plans)
established or adopted and maintained by the Company from time to time, in
accordance with the Company’s regular practices applicable to other similarly
situated executives of the Company. The provisions of this paragraph (g) shall
not affect in any way the rights of the Company to amend or terminate any such
group benefit plans in accordance with the terms of such plans and the
provisions of applicable law.

     (h)  Vacation. The Executive shall be entitled to such vacation, holidays
and other paid or unpaid leaves of absence as are consistent with the Company’s
normal policies or as are otherwise approved by the Company.

     (i)  Automobile Allowance. The Company will provide the Executive with an
automobile allowance consistent with the terms of the Company’s policies as
from time to time in effect.

     SECTION 6. Termination and Resignation. The Company shall have the right
to terminate the Executive’s employment hereunder at any time and for any
reason, and upon any such termination the Executive shall be entitled to
receive from the Company prompt payment of the amount determined pursuant to
the applicable Subsection of Section 7 below. The Executive shall have the
right to terminate his employment hereunder at any time by resignation, and
thereupon the Executive will be entitled to receive from the Company prompt
payment of the amount determined pursuant to the applicable Subsection of
Section 7 below.

     SECTION 7. Payments Upon Termination and Resignation.

     (a)  Pro Rata Payment. If the Company terminates the Executive’s employment
for Cause, or if the Executive voluntarily resigns prior to the occurrence of a
Change in Control of the Company at a time when there is no uncured Breach by
the Company of this Agreement, then in either case the Executive shall be
entitled to receive only his then current Base Salary on a pro rata basis to
the date of such termination or resignation.

     (b)  Base Salary Payment. If the Executive dies, or becomes Disabled, or if
the Company terminates the Executive’s employment Without Cause prior to the
occurrence of a Change in Control, or if the Executive resigns because of a
Breach by the Company of this Agreement, then in each case the Executive (or
his heirs or executors) shall continue to receive his Base Salary for each
fiscal year under the remaining Term of this Agreement and the Average Bonus
for such year(s), plus an additional year of Base Salary, an Average Bonus and
health insurance for such additional year.

     (c)  Multiple Base Salary and Bonus Payment. If within two (2) years after
the occurrence of a Change in Control of the Company, (a) the Company
terminates the

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Executive’s employment hereunder for any reason other than for Cause, or
(b) the Executive voluntarily resigns his employment hereunder for any reason,
then in each case the Company will pay to the Executive a lump sum termination
payment equal to two times the sum of the Executive’s then current Base Salary
and Average Bonus.

     SECTION 8. Confidentiality. The Executive recognizes and acknowledges that
the names of the Company’s customers, the Company’s methods of operation,
sales, engineering and other trade secrets, as they may exist from time to
time, are valuable, special and unique assets of the Company. The Executive
shall not, during or after the term of his employment under this Agreement,
disclose any such names or other trade secrets, or any part thereof, that he
becomes aware of during his employment, to any person, firm, corporation,
association or other entity.

     SECTION 9. Competitive Activity.

     (a)  The Executive recognizes and acknowledges that the relationship
created by this Agreement is one of trust, and the Executive agrees that, while
he is employed by the Company or is being paid under this Agreement following a
Termination Without Cause, the Executive shall not (whether acting alone or
through any affiliate) or in any other capacity whatsoever and whether by
investing in, or holding securities of, any corporation or other entity,
advancing or lending any funds to, making available any facilities, equipment
or other assets to any entity or other person, engage in any of the following
activities:

		
	 	     (i) except in connection with the due and proper performance of his
duties hereunder, engage in the business of designing, manufacturing or
selling manufactured housing;
	 
	 	     (ii) except in connection with the due and proper performance of his
duties hereunder, solicit or contact (with respect to the manufactured
housing industry) retailers, dealers, suppliers, customers or potential
customers on behalf of any corporation or other entity or any other
person engaged in the business of designing, manufacturing and selling
manufactured housing;
	 
	 	     (iii) solicit or otherwise induce any employee of the Company or any
of its subsidiaries to terminate his or her service with the Company or
any such subsidiary or hire any person who was an employee of the Company
or any such subsidiary at any time during the 12-month period immediately
prior to the date of termination or expiration of the Executive’s
employment hereunder.

     (c) Notwithstanding anything to the contrary in this Section 9, the
Company agrees that it shall not be a violation of this Agreement for the
Executive to provide services as a part-time employee-consultant to Centex
through March 31, 2005.

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     (d)  Notwithstanding anything to the contrary in this Section 9, the
Executive may own, for investment purposes only, up to three percent of the
stock of any publicly-held corporation that engages in the business of
designing, manufacturing and selling manufactured housing or that otherwise
directly or indirectly competes with the Company if the stock of such
corporation is either listed on a national securities exchange or traded on the
NASDAQ National Market and if the Executive is not an employee or consultant
of, and is not otherwise affiliated with, such corporation.

     (e)  It is hereby agreed by and between the Executive and the Company that
if (notwithstanding the provisions of paragraph (d) below) the non-competition
covenants contained in this Agreement should be held by any court or other
constituted legal authority to be void or unenforceable in any particular area
or jurisdiction, then the parties hereto shall consider this Agreement to be
amended and modified so as to eliminate therefrom that particular area or
jurisdiction as to which the non-competition covenants are held to be void or
otherwise unenforceable, and as to all other areas and jurisdictions covered by
this Agreement, the terms and provisions hereof shall remain in full force and
effect as originally written.

     (f)  It is further agreed that if the non-competition covenants contained
in this Agreement should be held by any court or other constituted legal
authority to be effective in any particular area or jurisdiction only if said
covenants are modified to limit their duration or scope, then the parties
hereto shall consider such non-competition covenants to be amended and modified
with respect to that particular area or jurisdiction so as to comply with the
order of any court or other constituted legal authority, and as to all other
areas and jurisdictions, the non-competition covenants contained herein shall
remain in full force and effect as originally written.

     (g)  The Executive and the Company agree that the covenants set forth
herein are appropriate and reasonable when considered in light of the nature
and extent of the business of designing, manufacturing and selling manufactured
housing as conducted by the Company and its subsidiaries. The Executive
acknowledges that (i) the Company has a legitimate interest in protecting its
business, (ii) the covenants set forth herein are not oppressive to the
Executive and contain such reasonable limitations as to time, scope,
geographical area and activity, (iii) the covenants do not harm in any manner
whatsoever the public interest, and (iv) the Executive has received and will
receive substantial consideration for agreeing to such covenants.

     SECTION 10. Miscellaneous.

     (a)  Reimbursement of Legal Expenses. If at any time the Executive (or his
beneficiary or beneficiaries, or his estate, as the case may be) shall commence
any legal action to enforce any of the terms or provisions of this Agreement,
including, without limitation, any term or provision requiring the payment of
compensation to the Executive hereunder, whether in installments or in a lump
sum, or the payment of the severance benefit hereunder, and such legal action
results in a decision favorable to the person so

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commencing such action, the Company agrees to reimburse such person for
all costs and expenses of such action, including reasonable attorney’s fees,
incurred by such person in connection therewith.

     (b)  Succession. This Agreement shall inure to the benefit of and be
binding upon the Company, its successors and assigns, including without
limitation, any person, partnership or corporation which may acquire all or
substantially all or a majority of the Company’s assets and business, or with
or into which the Company may be consolidated or merged, and this provision
shall apply in the event of any subsequent mergers, consolidations, and
transfers, and shall be binding upon the Executive, his heirs and personal
representatives.

     (c)  No Waiver. The failure of either party to insist, in any one or more
instances, upon performance of any of the terms or conditions of this Agreement
shall not be construed as a waiver or a relinquishment of any right granted
hereunder or of the future performance of any such term or condition, but the
obligation of the other party with respect thereto shall continue in full force
and effect.

     (d)  Notice. Any notice to be given to the Company hereunder shall be
deemed sufficient if addressed to the Company in writing and personally
delivered or mailed by certified mail to its office at 1001 N. Central Avenue,
8th Floor, Phoenix, Arizona 85004, Attn: Secretary. Any notice to be given to
the Executive hereunder shall be deemed sufficient if addressed to the
Executive in writing and personally delivered or mailed by certified mail to
1001 N. Central Avenue, 8th Floor, Phoenix, Arizona 85004. Either party may,
by notice as aforesaid, designate a different address or addresses.

     (e)  Severability. In any event any provision of this Agreement shall be
held to be illegal, invalid or unenforceable for any reason, the illegality,
invalidity, or unenforceability shall not affect the remaining provisions
hereof, but such illegal, invalid or unenforceable provision shall be fully
severable and this Agreement shall be construed and enforced as if the illegal,
invalid or unenforceable provision had never been included herein.

     (f)  Headings. The titles and headings of Sections are included for
convenience of reference only and are not to be considered in construction of
the provisions hereof.

     (g)  Word Usage. Words used in the masculine shall apply in the feminine
where applicable, and wherever the context of this Agreement dictates, the
plural shall be read as the singular and the singular as the plural.

     (h)  Governing Law. This Agreement shall be governed in all respects by
the laws of the State of Arizona.

9

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first above written.

	 	 	 	 
	
CAVCO INDUSTRIES, INC.	 
	 	 	 	 
	 	 	 	 
	By:	 	 	 
	 	 	

	 
	Its	 	 	 
	 	 	

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	

	 
	
JOSEPH H. STEGMAYER	 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]