Document:

Exhibit

Exhibit 10.2

Vail Resorts
Management Incentive Plan 
Grades 33 & Above 

Objective 
The purpose of the Management Incentive Plan (the “Plan”) is to reinforce individual employee behaviors that contribute to the mission, values, growth and profitability of Vail Resorts, Inc. and its wholly owned subsidiaries (collectively, the “Company”) by: 

Rewarding and recognizing performance in one or more of the following areas: 
		
	•
	Financial - Financial results at the end of the fiscal year are compared to EBITDA targets determined at the beginning of the fiscal year. EBITDA (Earnings before Interest, Taxes and Depreciation and Amortization excluding stock based compensation) results are consolidated into various divisions of the Company and are defined in the funding section below.

		
	•
	Individual – Individual employee performance, including adherence to the Company’s mission and values.

Effective Dates 
The Plan is effective and will remain in effect until amended or terminated. The Plan Year will run concurrently with the fiscal year under which the employee is governed. 

Eligibility 
All full-time employees of the Company at grade levels 33 and above as identified in the Company’s compensation grade structures are eligible to participate in the Plan. 

Target Percentages 
The target bonus percentages for employees are determined by the Compensation Committee in its sole discretion on a yearly basis by the end of the first quarter of each fiscal year and while the attainment of EBITDA performance targets are substantially uncertain. 

Target Incentives 
Each employee’s target bonus incentive is calculated based on the target bonus percentage of his or her annual salary as of the last day of the measurement period the employee was classified in a Grade 33 position, except where proration is needed as defined in the proration of target incentives section. 

Funding 
The funding at the end of the fiscal year is based on the final EBITDA results of the Company’s business divisions and the eligible employee’s incentive target amounts as determined by the Compensation Committee and as defined in Exhibits A and B. 

EBITDA Results for the Company are based on overall Vail Resorts EBITDA which includes all Mountain resorts, Lodging divisions and Retail divisions combined.

For all Vail Resorts Executives, the Plan is 100% funded based on Resort EBITDA. 

The maximum amount that may be earned as an award under the Plan for any Plan year by any one eligible employee shall be $4,000,000. 

Funding Variable
At each fiscal year-end, the funding will be based on the percentage of EBITDA target achieved. The schedule attached hereto as Exhibit A is used to determine the percent of the target incentive funded by overall Vail Resorts EBITDA performance. The Compensation Committee will establish the Resort EBITDA performance targets and corresponding funding levels and may amend Exhibit A by the end of the first quarter of each fiscal year and while the attainment of such goals is substantially uncertain. EBITDA results are rounded to the nearest whole percentage using simple rounding. 

Individual Performance Rating Variable 
For all employees excluding the Chief Executive Officer, the target incentive will be influenced based on individual performance. The Chief Executive Officer’s total bonus will be equal to, and based solely on, the funded target incentive amount. 

Individual performance for all employees participating in the Plan will be determined through the applicable fiscal year performance review process, which will be determined by the Chief Executive Officer. With the exception of promoted employees, the final performance score will determine the incentive payment with higher performing employees receiving larger rewards than their lower performing peers. For those employees promoted into a higher level position, any applicable incentive payments will be calculated by applying the Meets Expectations performance variable to the incentive target for the new position. 

Example 1 Payout: 
		
	•
	Grade 33 Corporate employee

		
	•
	$200,000 annual salary

		
	•
	Target incentive % = 42.5%

		
	•
	Target incentive $= $200,000 x 42.5% = $85,000

		
	•
	Resort EBITDA results are at 101% of target

		
	•
	Resort EBITDA funding = 107.5%

With Resort EBITDA funding 100%, funded incentive = 107.5% x $85,000 = $91,375. 

		
	•
	Individual performance rating of “Achieves Expectations” 

		
	•
	“Achieves Expectations” = 100% of funded incentive 

		
	•
	$91,375 x 100% = $91,375 payout

Individual performance can multiply the incentive payout by 0% to 130% of the target amount as displayed in Exhibit B. 

Proration for New Hires 
An employee hired into a position eligible for this Plan will receive a prorated incentive for the Plan Year based on the hire date and following schedule. Anyone hired after April 30 will not be eligible to receive an award in that fiscal year, except at the sole discretion of the Compensation Committee. 

	
		
	Month of Hire
	Prorate %

	August, September, October
	100%

	November, December, January
	67%

	February, March, April
	33%

	May, June, July
	0%

Proration for Internal Promotes 
The proration calculation for employees who have been promoted into a plan eligible position will be based on number of days in each role and performance rating earned in each position. For the purposes of this plan, a promotion is defined as position change resulting in an increase in grade assignment and individual bonus target percentage. 
	
														
	Example of Prorated Bonus due to Promotion

	Role
	Base Salary
	Target %
	Target $
	Funding %
	Performance 
Rating 
	# of Days 
In Role 
	Prorated 
Payout 

	SVP
	

	$250,000
	

	42.5%
	

	$106,250
	

	100%
	100%
	92
	

	$26,781
	

	VP
	

	$225,000
	

	35.0%
	

	$78,750
	

	100%
	100%
	273
	

	$58,901
	

	Final Amount
	

	$85,682
	

Pro-Ration for Leave of Absence 
Individual incentive determinations for employees who have a paid or unpaid leave of absence (this does not include vacation) in excess of one month during the Plan Year will be prorated to reflect the time on leave. 

Plan Payouts 
Individual incentive determinations calculated in accordance with the terms of this Plan will be paid in cash or pursuant to equity awards granted under the Company’s equity compensation plan, or a combination thereof, at the discretion of the Compensation Committee, minus applicable deductions and withholding as required by law, by the close of the first quarter following the previous fiscal year end. Payouts will be rounded to the nearest whole dollar amount. 

Termination of Employment 
Incentive payments under the Plan do not vest until the date Plan payments are made. To be eligible to receive a payment, a participant must be employed by the Company on the date Plan payments are made. Employees whose employment ends prior to the payment date under the Plan for any fiscal year will not be eligible, subject to the discretion of the Compensation Committee. However, if an otherwise eligible employee is not employed as of the date of the payout under the Plan due to death or long-term disability under the Company long-term disability plan, such employee, if he or she would have otherwise received a payout under the Plan but for his or her death or disability, shall be entitled to receive a pro-rated payment for the portion of the fiscal year the employee was actively employed. 

If an employee terminates employment and is subsequently rehired, eligibility under this Plan restarts with the employee’s rehire date. 

Material Restatement of Financial Results 
In the event that the Board determines there has been a material restatement of publicly issued financial results from those previously issued to the public , the Board will review all incentive payments made to executive officers on the basis of having met or exceeded specific performance targets and, if such payments would have been lower had they been calculated based on such restated results, the Board will, to the extent permitted by governing law, seek to recoup for the benefit of our company such payments made in excess of the amount that would have been paid based on the restated results. This will apply to all incentive payments made during the three-year period prior to the restatement, beginning with payments earned for the 2012 fiscal year. For purposes of this policy, the term “executive officers” has the meaning given in Rule 3b-7 under the Securities Exchange Act of 1934, as amended, and the term “incentive payments” means bonuses and awards under the Plan. 

Plan Administration, Modification and Discontinuance 
This Plan is administered by the Compensation Committee. The Compensation Committee has authority to interpret the Plan and to make, amend, or nullify any rules and procedures deemed necessary for proper Plan administration, including, but not limited to, performance targets, results and extraordinary events. The EBITDA performance targets and corresponding funding levels shall be adjusted for acquisitions, divestitures, or board imposed unbudgeted expenses in the discretion of the Compensation Committee. 

Notwithstanding the foregoing, no Plan payouts will be made until and unless the Compensation Committee has certified that the performance goals and all other material terms have been satisfied. The Compensation Committee has the sole discretion to modify the application of this Plan. 

Continued Employment 
The Plan is not intended to and does not give any employee the right to continued employment with the Company. The Plan does not create a contract of employment with any employee and does not alter the at-will nature of employee’s employment with the Company. 

Exhibit A – EBITDA Funding Matrix 

	
		
	 

	Percent of the EBITDA Target Obtained for Vail Resorts
	Percent of Incentive Target Funded- Grade 33+

	<80%
	0.0%

	80%
	15.00%

	81%
	16.00%

	82%
	17.00%

	83%
	18.00%

	84%
	19.00%

	85%
	20.00%

	86%
	21.00%

	87%
	22.00%

	88%
	23.00%

	89%
	24.00%

	90%
	25.00%

	91%
	30.00%

	92%
	35.00%

	93%
	40.00%

	94%
	45.00%

	95%
	50.00%

	96%
	60.00%

	97%
	70.00%

	98%
	80.00%

	99%
	90.00%

	100%
	100.00%

	101%
	107.50%

	102%
	115.00%

	103%
	122.50%

	104%
	130.00%

	105%
	137.50%

	106%
	145.00%

	107%
	152.50%

	108%
	160.00%

	109%
	167.50%

	110%
	175.00%

	111%
	177.50%

	112%
	180.00%

EBITDA Funding Matrix - continued
	
		
	Percent of the EBITDA Target Obtained for Vail Resorts
	Percent of Incentive Target Funded- Grade 33+

	113%
	182.50%

	114%
	185.00%

	115%
	187.50%

	116%
	190.00%

	117%
	192.50%

	118%
	195.00%

	119%
	197.50%

	>=120%
	200.00%

Exhibit B – Performance Rating Variable 

The following table illustrates how an individual’s performance rating affects the overall Management Incentive Plan Payout. 

	
		
	 

	 
	 

	Performance Rating Chart

	Performance Rating
	% Incentive Influenced

	Greatly Exceeds Expectations
	130%

	Exceeds Expectations
	115%

	Achieves Expectations
	100%

	Meets Most Expectations
	70%

	Meets Some Expectations
	0%EX-10.17

 Exhibit 10.17 

IES HOLDINGS, INC. 
 5433
Westheimer Road, Suite 500 
 Houston, Texas 77056 

December 6, 2018 
 Tontine Associates, L.L.C.

 One Sound Shore Drive, Suite 304 
 Greenwich, CT 06830 

Ladies and Gentlemen: 
 This BOARD OBSERVER
LETTER AGREEMENT (this “Letter Agreement”) is entered into by and between, Tontine Associates, L.L.C. (“TA,” and together with its affiliates, “Tontine”), and IES Holdings, Inc., a Delaware
corporation (the “Company”). Tontine and the Company are herein referred to as the “Parties” and each, individually, as a “Party.” 

WHEREAS, according to its latest Form 4 filing as of October 3, 2018, Tontine holds approximately 59% of the Company’s outstanding
common stock, and the Chairman of the Board of Directors of the Company (the “Board”) is the managing member of TA and certain of its affiliates, and 

WHEREAS, Tontine has determined that appointing a Board Observer (as defined below) to assist it in reviewing the materials and proceedings of
the Board would enhance Tontine’s ability to manage its investment in the Company; and 
 WHEREAS, the Unaffiliated Directors (as
defined below) of the Company believe it is in the best interest of the Board and the Company to provide Tontine with the right to appoint a Board Observer to carry out such review, and the Audit Committee of the Board has approved this Letter
Agreement pursuant to its Related Person Transaction Policy; 
 NOW THEREFORE, in consideration of these premises, the covenants set forth
herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

1.    Board Observer Right. 
  

	(a)	 Tontine shall have the right to appoint a representative (the “Board Observer”) who is
reasonably acceptable to those members of the Board who are not affiliates of Tontine (the “Unaffiliated Directors”) to attend all meetings of the Board and any committee thereof (including telephonic meetings) as a nonvoting
observer thereof (the “Board Observer Right”); provided, however, that if at any time Tontine shall cease to hold at least 20% of the Company’s outstanding common stock, then, contemporaneously therewith and
without further action of the Board, the Board Observer Right shall terminate, this Letter Agreement will be null and void and of no effect and Tontine and the Board Observer shall cease to have any rights hereunder. 

	(b)	 The Company will use commercially reasonable efforts to (i) give to the Board Observer notice of meetings
of the Board and any committee thereof and all proposals to such body for action without a meeting, in each case at the same time that notice of such meetings or proposals is given to members of the Board, (ii) allow the Board Observer to
attend such meetings, (iii) subject to ordinary and reasonable procedural rules, allow the Board Observer to participate in a meaningful manner in discussions of matters brought to the Board and any committee thereof, (iv) allow the Board
Observer to pose questions to the Board and any committee thereof, and respond to such questions in the same manner as though they had been posed by a member of the Board, and (v) provide the Board Observer with copies of written materials
distributed to the Board and any committees thereof in connection with such meetings or proposals for action without a meeting, including all minutes of previous actions and proceedings; provided, however, that such Board Observer
shall agree to hold in strict confidence all information so provided and all non-public information and proceedings of the Board as provided in clause (c) below; and provided further, that
(x) the Company reserves the right to withhold any information from the Board Observer and to exclude the Board Observer from any meeting or portion thereof, as deemed reasonably necessary by the Board or the Unaffiliated Directors, including
if access to such information or attendance at such meeting could present a conflict of interest or adversely affect the attorney-client privilege between the Company and its counsel or result in disclosure of trade secrets, and (y) the Board
Observer shall not have any voting rights or any other decision-making authority. 

  

	(c)	 The exercise by Tontine of the Board Observer Right is conditioned upon the Company’s receipt of a
confidentiality agreement executed by Tontine and the Board Observer that is reasonably satisfactory to the Company providing for Tontine’s and the Board Observer’s preservation of the confidentiality of any materials provided or
information received at any meeting of the Board or any committee thereof. 

  

	(d)	 The Board Observer shall be entitled to receive reimbursement by the Company for reasonable out-of-pocket expenses incurred in his or her capacity as a Board Observer. 

  

	(e)	 Should the Unaffiliated Directors determine that any individual serving as the Board Observer is not reasonably
acceptable, they may remove such individual from serving as Board Observer, and Tontine may appoint another individual deemed reasonably acceptable by such Unaffiliated Directors to serve as Board Observer. 

 

	(f)	 The Company hereby acknowledges that the Board Observer shall not have, or be deemed to have, or otherwise be
subject to, any duties (fiduciary or otherwise) to the Company or its stockholders other than pursuant to any confidentiality agreement entered into between the Company and the Board Observer. 

 

	(g)	 The Board Observer shall be entitled to coverage under the Company’s directors’ and officers’
liability insurance policy to the same, or substantially the same, extent provided by the Company to its directors. The Company acknowledges and agrees that the foregoing rights to insurance coverage constitute third-party rights extended to the
Board Observer by the Company and do not constitute rights to insurance coverage as a result of the Board Observer serving as a director, officer, employee or agent of the Company. 

 2.    Agreement. This Letter Agreement constitutes the entire
agreement between the Parties hereto with respect to the subject matter hereof and supersedes all other prior letters and understandings, both written and verbal, between the Parties hereto with respect to the subject matter hereof. 

3.    Assignment. This Letter Agreement is solely for the benefit of the Parties hereto, and, to the fullest extent
permitted by law, will not be assignable by any Party without the prior written consent of the other Party. 

4.    Miscellaneous. This Letter Agreement shall be governed by and be construed and have effect in accordance with
the Laws of the State of Delaware, excluding any choice of law rules that may direct application of Laws of another jurisdiction. This Letter Agreement may be amended and the observance of any provision may be waived only with the mutual written
consent of each of the Parties hereto. Descriptive headings are for convenience only and will not control or affect the meaning or construction of any provision of this Letter Agreement. This Letter Agreement may be executed in multiple counterparts
which, when taken together, shall constitute one and the same agreement. 
 [SIGNATURE PAGE FOLLOWS] 

 If the above correctly reflects our understanding and agreement with respect to the
foregoing matters, please so confirm by signing and returning the enclosed copy of this Letter Agreement. 
  

			
	IES HOLDINGS, INC.
		
	By:	 	/s/ ROBERT W. LEWEY
		 	Name: Robert W. Lewey
		 	Title:   President

 Agreed to and Acknowledged as of the date hereof: 

 

			
	TONTINE ASSOCIATES, L.L.C.
		
	By:	 	/s/ JEFFREY L. GENDELL
		 	Name: Jeffrey L. Gendell
		 	Title:   Managing Member

 Signature Page to Letter Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]