Document:

Exhibit 10.1

 

TACTILE SYSTEMS TECHNOLOGY, INC.

MANAGEMENT INCENTIVE PLAN

 

Adopted March 8, 2017

 

In order to provide an additional incentive to eligible employees to contribute to the success of Tactile Systems Technology, Inc. (the “Company”), the Company has adopted this Management Incentive Plan (the “Plan”) under which annual cash bonus awards (the “Awards”) may be provided to eligible employees. As set forth in this Plan, the grant of Awards is within the discretion of the Compensation and Organization Committee (the “Committee”) of the Company’s Board of Directors (the “Board”), and the payment of these Awards is subject to several contingencies, including the attainment of performance goals approved by the Committee that are based on one or more performance measures described below.

 

1.                                      Eligibility.  Any employee of the Company or any of its subsidiaries is eligible to participate in the Plan. The Committee will designate those employees who are to be participants in the Plan for each calendar year performance period. Designation by the Committee as a participant for a specific performance period does not confer on an employee the right to participate in the Plan during any other performance periods.

 

2.                                      Grant of Performance Awards.  The Committee will designate which employees may participate in the Plan and be granted Awards for each performance period. Awards may be granted to participants in such amounts and on such terms as may be determined by the Committee, consistent with the terms of the Plan. At the time an Award is made, the Committee will specify the terms and conditions that will govern the Award, which will include that the Award will be earned upon, and to the extent that, one or more performance goals based on one or more of the performance measures specified in Section 3 have been attained over the course of the applicable performance period. Different terms and conditions may be established by the Committee for different Awards and for different participants. The terms of individual Awards will be set forth in such written or electronic notices as the Committee may prescribe.

 

3.                                      Performance Measures.  The performance measures upon which performance goals applicable to Awards under the Plan may be based shall be one or a combination of two or more of the following: (i) net income; (ii) earnings before one or more of interest, taxes, depreciation, amortization and stock-based compensation expense; (iii) revenue; (iv) gross profit; (v) operating income; (vi) profitability as measured by return ratios (including, but not limited to, return on assets, return on equity, return on invested capital and return on revenue); (vii) cash flow (including, but not limited to, operating cash flow, free cash flow and cash flow return on capital); (viii) market share; (ix) margins (including, but not limited to, one or more of gross, operating and net earnings margins); (x) stock price; (xi) total stockholder return; (xii) orders; (xiii) cost and expense management; (xiv) economic value added or similar value added measurements; and (xv) implementation or completion of critical projects. Any performance goal based on one or more of the foregoing performance measures may be expressed in absolute amounts, on a per share basis (basic or diluted), relative to one or more other performance measures, as a growth rate or change from preceding periods, or as a comparison to the performance of specified companies, indices or other external measures, and may relate to one or any combination of Company, subsidiary, business unit or individual performance.

 

4.                                      Adjustments to Performance Measures or Goals.  In connection with establishing or applying the performance goals applicable to any performance period, the Committee may adjust the performance goals or the performance measures on which they are based to equitably reflect, in the Committee’s judgment, the impact of (i) events during the performance period that are unusual in nature or infrequently occurring (such as acquisitions, divestitures, restructuring activities or asset write-downs), (ii) changes in applicable tax laws or accounting principles, or (iii) equity restructurings, reorganizations or other changes in corporate capitalization.

 

 

5.                                      Determination of Award Amounts Payable.  Following the completion of each performance period, the Committee will determine the degree to which the applicable performance goals were attained and the corresponding Award amounts that would be payable to participants based on such attainment. The Committee is authorized, in its sole and absolute discretion and based on such factors as it deems relevant, to increase or decrease (including to zero) the amount of an Award that would otherwise be payable to any participant based on attainment of applicable performance goals.

 

6.                                      Payment of Awards. The amount of any Award determined by the Committee to be payable to a participant will be paid to the participant in a lump sum cash payment (less applicable withholding taxes) no later than March 15 of the calendar year immediately following the applicable performance period. As a condition to receiving any payment of an Award under this Plan, a participant must continue to be employed by the Company or one of its subsidiaries on the date of payment. If a participant’s employment with the Company and its subsidiaries terminates for any reason (whether voluntary, involuntary, as a result of death or disability, or with or without cause) at any time prior to the date of payment, no payment under the Plan will be made.

 

7.                                      Administration.  The Committee shall have power to make Awards and to determine when and to whom Awards will be granted, and the form, amount and other terms and conditions of each Award, subject to the provisions of this Plan. The Committee shall have the authority to interpret this Plan and any Award made under this Plan, to establish, amend, waive and rescind any rules relating to the administration of this Plan, and to make all other determinations necessary or advisable for the administration of this Plan. The Committee may correct any defect, supply any omission or reconcile any inconsistency in this Plan or in any Award in the manner and to the extent it shall deem desirable. The determinations of the Committee in the administration of this Plan shall be final, binding and conclusive. The Committee may delegate all or any portion of its authority under the Plan to any one or more of its members or, as to Awards to participants or eligible employees who are not executive officers of the Company, to one or more executive officers of the Company.

 

8.                                      Miscellaneous.

 

(a)                                 Effective Date and Term.  The Plan shall become effective as of the date first written above, and shall remain in effect until it has been terminated pursuant to Section 8(d).

 

(b)                                 No Right to Employment.  Nothing in the Plan or any Award notice constitutes or implies (i) any obligation or undertaking to employ or retain a participant for any period of time or in any position, or (ii) any limitation on the right of the Company to terminate a participant’s employment at any time with or without notice or cause.

 

(c)                                  Tax and Other Withholding.  Any payments under the Plan will be subject to withholding of all taxes and other amounts required by law to be withheld or paid to others. The Company may, in its discretion and to the full extent permitted by law, apply a payment otherwise payable to a participant under the Plan to pay any amounts, debts or claims owed to the Company by such participant, until all such amounts, debts and claims are paid in full.

 

(d)                                 Amendment, Modification and Termination of the Plan.  The Board or Committee may at any time terminate, suspend or modify the Plan and the terms and provisions of any Award to any participant which has not yet been paid. No Award may be granted during any suspension of the Plan or after its termination.

 

(e)                                  Unfunded Plan.  The Plan shall be unfunded, and the Company shall not be required to segregate any assets that may at any time be represented by Awards under the Plan. No participant shall, by virtue of this Plan, have any interest in any specific assets of the Company.

 

(f)                                   Other Benefit Programs.  Payments received by a participant under an Award made pursuant to the Plan shall not be deemed a part of the participant’s regular recurring compensation

 

 

for purposes of the termination, indemnity or severance pay law of any state and shall not be included in, nor have any effect on, the determination of benefits under any other employee benefit plan, contract or similar arrangement provided by the Company unless expressly so provided by such other plan, contract or arrangement, or unless the Committee expressly determines otherwise.

 

(g)                                  Governing Law.  The Plan and all determinations made and actions taken pursuant to the Plan shall be governed by the laws of the State of Minnesota without regard to its conflicts-of-law principles, and shall be construed accordingly.

 

(h)                                 Non-Transferability.  No Award may be sold, assigned, transferred, exchanged or encumbered, voluntarily or involuntarily.Exhibit

Exhibit 10.1
Execution version

THIRD AMENDING AGREEMENT
THIS THIRD AMENDING AGREEMENT is dated as of February 13, 2017 (this “Agreement”) and is entered into between Whistler Mountain Resort Limited Partnership (“Whistler LP”), by its general partner, Whistler Blackcomb Holdings Inc. (the “Parent GP”), and Blackcomb Skiing Enterprises Limited Partnership (“Blackcomb LP” and together with Whistler LP, the “Borrowers”), by its general partner, Parent GP, the guarantors party hereto, and The Toronto-Dominion Bank, as administrative agent (the “Administrative Agent”), on its own behalf and on behalf of the Lenders (as defined below);
WHEREAS the Borrowers, the guarantors from time to time party thereto (the “Guarantors”), the lenders from time to time party thereto (the “Lenders”), and the Administrative Agent are parties to an Amended and Restated Credit Agreement dated as of November 12, 2013, as amended by a First Amending Agreement dated as of October 30, 2014 and by a Second Amending Agreement and Waiver dated as of October 14, 2016 (as further amended, restated, amended and restated, supplemented, extended or otherwise modified from time to time, the “Credit Agreement”);
AND WHEREAS 1068877 B.C. Ltd. (“Exchangeco”), a wholly-owned subsidiary of Vail Resorts, Inc. (“Vail”), acquired one hundred percent of the capital stock of Parent GP pursuant to a plan of arrangement under the Business Corporations Act (British Columbia) (the “Transaction”);
AND WHEREAS Parent GP and Exchangeco were amalgamated to form 1068877 B.C. Ltd., which subsequently changed its name to Whistler Blackcomb Holdings Inc. (“WBHI”), and which, by operation of law, is bound by all of the covenants and obligations of Parent GP under the Credit Documents to which it is a party (and all references hereinafter to Parent GP shall include reference to WBHI);
AND WHEREAS the Borrowers have requested that the Lenders agree to amend Section 8.01(1)(a)(i) to remove the requirement for the quarterly delivery to the Lenders of the interim unaudited consolidated financial statements of Parent GP;
AND WHEREAS the Lenders have agreed consent to the foregoing amendment, subject to the terms and conditions contained herein;
NOW THEREFORE for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby agree as follows:
ARTICLE 1
INTERPRETATION
Capitalized terms used in this Agreement and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement.

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ARTICLE 2     
AMENDMENTS TO CREDIT AGREEMENT
Subject to the satisfaction of each of the conditions set forth in this Agreement, and in reliance on the representations, warranties and agreements contained in this Agreement, the Credit Agreement is hereby amended as follows:
		
	2.1
	Financial Reporting

Section 8.01(1)(a)(i) of the Credit Agreement is hereby amended by deleting clause (B) of that section and replacing the same with “Intentionally Deleted.”.
ARTICLE 3     
REPRESENTATIONS AND WARRANTIES
		
	3.1
	Representations and Warranties

Each of the Parent GP and the Loan Parties represents and warrants that the representations and warranties contained in Section 7.01 of the Credit Agreement continue to be true and correct as if made on and as of the date hereof except for those changes to the representations and warranties which have been disclosed to and accepted by the Administrative Agent and the Lenders pursuant to section 18.01 of the Credit Agreement and any representation and warranty which is stated to be made only as of a certain date (and then as of such date).  Each of the Parent GP and the Loan Parties further represents and warrants that:
		
	(a)
	no Default or Event of Default has occurred and is continuing;

		
	(b)
	it has all requisite corporate, partnership or other power and authority to enter into and perform its obligations under this Agreement; 

		
	(c)
	the execution, delivery and performance of this Agreement has been duly authorized by all corporate, partnership or other analogous actions required and this Agreement has been duly executed and delivered by it, and constitutes a legal, valid and binding obligation enforceable against it in accordance with its terms, subject only to any limitations under Laws relating to (i) bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally; and (ii) general equitable principles including the discretion that a court may exercise in granting of equitable remedies; and

		
	(d)
	the execution and delivery of this Agreement and the performance of its obligations hereunder and compliance with the terms, conditions and provisions hereof, will not (i) conflict with or result in a breach of any of the material terms, conditions or provisions of (a) its partnership agreement or other constating documents, as applicable, or by‐laws, (b) any Law, (c) any Material Agreement or Material Permit, or (d) any judgment, injunction, determination or award which is binding on it; or (ii) result in, require or permit (x) the imposition of any Encumbrance in, on or with respect to the Assets now owned or hereafter acquired by it (other than pursuant to 

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the Security Documents or which is a Permitted Encumbrance), (y) the acceleration of the maturity of any material Debt binding on or affecting it, or (z) any third party to terminate or acquire any rights materially adverse to Parent GP or the applicable Loan Party under any Material Agreement.
ARTICLE 4     
CONFIRMATION OF SECURITY
		
	4.1
	Confirmation of Security Documents

Each of the Parent GP, the Borrowers and the other Loan Parties hereby acknowledges and confirms that each Security Document to which it is a party:
		
	(a)
	is and shall remain in full force and effect in all respects, notwithstanding the amendments and supplements to the Credit Agreement made pursuant to this Agreement, and has not been amended, terminated, discharged or released;

		
	(b)
	constitutes a legal, valid and binding obligation of the undersigned, enforceable against the undersigned in accordance with its terms; and

		
	(c)
	shall, together with that portion of the Security constituted thereby, continue to exist and apply to all of the Guaranteed Obligations and other obligations of the undersigned including, without limitation, any and all obligations, liabilities and indebtedness of the undersigned pursuant to Accommodations or otherwise outstanding under the Credit Agreement and the other Credit Documents to which it is a party.

		
	4.2
	Nature of Acknowledgements

The foregoing acknowledgements and confirmations (i) are in addition to and shall not limit, derogate from or otherwise affect any provisions of the Credit Agreement or the other Credit Documents, and (ii) do not serve as an acknowledgment by any of the Lenders or the Administrative Agent that, in the event of a future change to the constitution of any Loan Party, any material change to the terms of the Credit Agreement or the other Credit Documents or any other change of circumstances, a similar acknowledgment and confirmation need be entered into.
		
	4.3
	Further Assurances

The parties hereto shall from time to time do all such further acts and things and execute and deliver all such documents as are required in order to effect the full intent of and fully perform and carry out the terms of this Agreement.
ARTICLE 5     
CONDITIONS
The effectiveness of this Agreement is subject to the satisfaction of the following conditions precedent:

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	(a)
	the Administrative Agent shall have received copies of this Agreement duly executed by all parties hereto;

		
	(b)
	no Default or Event of Default shall have occurred and be continuing; and

		
	(c)
	all representations and warranties set out in the Credit Documents and this Agreement shall be true and correct as if made on and as of the date hereof except for those changes to the representations and warranties which have been disclosed to and accepted by the Administrative Agent and the Lenders pursuant to section 18.01 of the Credit Agreement and any representation and warranty which is stated to be made only as of a certain date (and then as of such date).

ARTICLE 6     
MISCELLANEOUS
		
	6.1
	Benefits

This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective permitted successors and assigns.
		
	6.2
	References to the Credit Agreement

Each reference to the Credit Agreement in any of the Credit Documents (including the Credit Agreement) shall be deemed to be a reference to the Credit Agreement, as amended by this Agreement.
		
	6.3
	Governing Law

This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.
		
	6.4
	Credit Document

This Agreement shall be a Credit Document.
		
	6.5
	Limited Effect

Except as expressly provided herein, all of the terms and provisions of the Credit Agreement are and shall remain in full force and effect and are hereby ratified and confirmed by the Borrowers.
		
	6.6
	Counterparts

This Agreement may be executed in any number of counterparts, including by facsimile or portable document format, each of which shall be deemed to be an original.
[Remainder of this page intentionally left blank]

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

	
				
	 
	 
	WHISTLER MOUNTAIN RESORT LIMITED PARTNERSHIP, by its general partner, WHISTLER BLACKCOMB HOLDINGS INC., as Borrower

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	 
	 
	BLACKCOMB SKIING ENTERPRISES LIMITED PARTNERSHIP, by its general partner, WHISTLER BLACKCOMB HOLDINGS INC., as Borrower

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

[Signature Page to Third Amending Agreement]

	
				
	 
	 
	THE TORONTO-DOMINION BANK,   as Administrative Agent, on its own behalf and on behalf of the Lenders

	By:
	/s/ Feroz Haq

	 
	Feroz Haq

	 
	Director, Loan Syndications - Agency

[Signature Page to Third Amending Agreement]

	
				
	

	 
	WHISTLER MOUNTAIN RESORT LIMITED PARTNERSHIP, by its general partner, WHISTLER BLACKCOMB HOLDINGS INC., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	
				
	

	 
	BLACKCOMB SKIING ENTERPRISES LIMITED PARTNERSHIP, by its general partner, WHISTLER BLACKCOMB HOLDINGS INC., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	
				
	

	 
	WHISTLER BLACKCOMB HOLDINGS INC., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

[Signature Page to Third Amending Agreement]

	
				
	

	 
	WHISTLER & BLACKCOMB MOUNTAIN RESORTS LIMITED, as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	
				
	

	 
	PEAK TO CREEK LODGING COMPANY LTD., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	
				
	

	 
	BLACKCOMB MOUNTAIN DEVELOPMENT LTD., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

[Signature Page to Third Amending Agreement]

	
				
	

	 
	GARIBALDI LIFTS LTD., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	
				
	

	 
	WHISTLER BLACKCOMB EMPLOYMENT CORP., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	
				
	

	 
	WHISTLER/BLACKCOMB MOUNTAIN EMPLOYEE HOUSING LTD., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

[Signature Page to Third Amending Agreement]

	
				
	

	 
	PEAK TO CREEK HOLDINGS CORP., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	
				
	

	 
	WB LAND INC., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	
				
	

	 
	WHISTLER BLACKCOMB GENERAL PARTNER LTD., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

[Signature Page to Third Amending Agreement]

	
				
	

	 
	WHISTLER SKI SCHOOL LTD., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	
				
	

	 
	CRANKWORX EVENTS INC., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	
				
	

	 
	WHISTLER HELI-SKIING LTD., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

[Signature Page to Third Amending Agreement]

	
				
	

	 
	WB/T DEVELOPMENT LTD., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	
				
	

	 
	BLACKCOMB SKIING ENTERPRISES LTD., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	
				
	

	 
	AFFINITY SNOWSPORTS INC., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	

	 
	WHISTLER ALPINE CLUB INC., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	 
	 
	Title: Executive Vice President and Chief Financial Officer

[Signature Page to Third Amending Agreement]

	
				
	

	 
	WB LAND (CREEKSIDE SNOW SCHOOL) INC., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	
				
	

	 
	SUMMIT SKI LIMITED, as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	
				
	

	 
	1016563 B.C. LTD., as Guarantor

	By:
	/s/ Michael Barkin

	 
	Name: Michael Barkin

	 
	 
	 
	Title: Executive Vice President and Chief Financial Officer

[Signature Page to Third Amending Agreement]

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