Document:

ex10-2.htm

EXHIBIT 10.2

 

URS Corporation

Restricted Stock Award

 

Grant Notice

(2008 Equity Incentive Plan)

 

URS Corporation (the “Company”), pursuant to its 2008 Equity Incentive Plan (the “Plan”), hereby grants to Participant the right to receive the number of shares of the Company’s Common Stock set forth below (“Award”).  This Award is subject to all of the terms and conditions as set forth herein and in the Restricted Stock Award Agreement and the Plan, each of which are attached hereto and incorporated herein in their entirety.  Defined terms not explicitly defined in this Grant Notice but defined in the Plan shall have the same definitions as in the Plan.

 

 

	Participant:	 	Martin M. Koffel
	Date of Grant:	 	January 2, 2012
	Vesting Commencement Date:	 	January 2, 2012
	Number of Shares Subject to Award:	 	200,000 shares

 

	
Vesting Schedule:

	
The shares subject to the Award shall vest as set forth below:

	
  

	
(a)

	
Time-based vesting: 25% of the shares subject to the Award shall vest on each of May 1, 2013 and May 1, 2014, provided in each case that Participant’s Continuous Service has not terminated prior to such vesting date.

	
  

	
(b)

	
Time-and-performance-based vesting: 25% of the shares subject to the Award shall vest on each of May 1, 2013 and May 1, 2014, provided in each case that (i) Participant’s Continuous Service has not terminated prior to such vesting date and (ii) the Company has met the net income goal for the fiscal year immediately preceding such vesting date, as such net income goal is established by the Compensation Committee of the Board of Directors (“the Committee”) during the first quarter of such fiscal year, and as confirmed by the Committee after the audited financial results for such fiscal year have been prepared by the Company, in the Committee’s sole discretion acting pursuant to the terms of the Plan (including, but not limited to, Section 2(hh) regarding permissible adjustments in the method of calculating the attainment of Performance Goals).

Additional Terms/Acknowledgements:  The undersigned Participant acknowledges receipt of, and understands and agrees to, this Grant Notice, the Restricted Stock Award Agreement and the Plan.  Participant further acknowledges that this Grant Notice, the Restricted Stock Award Agreement and the Plan set forth the entire understanding between Participant and the Company regarding the award of Common Stock in the Company and supersede all prior oral and written agreements on that subject with the exception of awards previously granted and delivered to Participant under the Plan.

 

	
URS Corporation

	 	 	
Participant

	 
	 	 	 	 	 	 	 
	By:	
/s/ 

	 	 	By:	
/s/ 

	 
	 	
H. Thomas Hicks

	 	 	 	
Martin M. Koffel

	 
	 	
Vice President and Chief Financial Officer

	 	 	 	
Date:  January 2, 2012

	 

 

	
Attachments:

	
Restricted Stock Award Agreement and 2008 Equity Incentive Plan

  

i

  

 

Attachment I

 

RESTRICTED STOCK AWARD AGREEMENT

 

  

ii

  

URS Corporation

2008 Equity Incentive Plan

 

Restricted Stock Award Agreement

 

Pursuant to the Restricted Stock Award Grant Notice (“Grant Notice”) and this Restricted Stock Award Agreement (collectively, the “Award”) and in consideration of your past services, URS Corporation (the “Company”) has awarded you a restricted stock award under its 2008 Equity Incentive Plan (the “Plan”) for the number of shares of the Company’s Common Stock subject to the Award indicated in the Grant Notice.  This Restricted Stock Award Agreement shall be deemed to be agreed to by the Company and you upon your execution of the Grant Notice to which it is attached.  Except where indicated otherwise, defined terms not explicitly defined in this Restricted Stock Award Agreement but defined in the Plan shall have the same definitions as in the Plan.

 

The details of your Award are as follows:

 

1. Vesting.  Subject to the limitations contained herein, your Award shall vest as provided in your Grant Notice, and any portion of your Award that does not vest due to either the termination of your Continuous Service or the failure to satisfy a Performance Goal shall be canceled.  If the Company does not meet the Performance Goal for the fiscal year immediately preceding a vesting date, then the portions of any and all Restricted Stock Awards subject to time-and-performance-based vesting held by you otherwise scheduled to vest on such vesting date, including but not limited to such portion of this Restricted Stock Award, shall be cancelled in accordance with the terms and conditions set forth in the relevant Award and the Plan; provided, however, that, for purposes of calculating whether the Performance Goal for a specific fiscal year has been satisfied, any reversal of accrued compensation charges under generally accepted accounting principles for the relevant fiscal year as a result of the cancellation of any unvested stock awards due to the Company’s failure to meet the Performance Goal for that fiscal year shall be disregarded.  Notwithstanding the foregoing, any unvested shares subject to your Award shall become vested in their entirety either (i) in the circumstances providing for accelerated vesting under the terms of your written Employment Agreement, dated as of September 5, 2003, with URS Corporation, as amended by the First Amendment dated December 7, 2006, the Second Amendment Dated December 10, 2008 and the Third Amendment Dated December 13, 2011 and as it may be further amended from time to time (the “Employment Agreement”), while your Employment Agreement is in effect, or (ii) in the circumstances provided in Section 14(c) of the Plan with respect to a Change in Control occurring after the Date of Grant provided, however, that with respect to the portion of your Award that is subject to both time and performance-based vesting (as indicated in the Grant Notice), no such acceleration shall occur in the event of a termination of your employment pursuant to clause (a)(iv) or (a)(v) of Section 6 of your Employment Agreement.  The shares subject to your Award will be held by the Company until your interest in such shares vests.  As each portion of your interest in the shares vests, the Company shall issue to you appropriate evidence representing such vested shares, either in the form of one or more stock certificates or as uncertificated shares in electronic form, or in any combination of the foregoing.

 

2. Number of Shares.  The number of shares subject to your Award may be adjusted from time to time for Capitalization Adjustments, as provided in the Plan.

 

3. Payment.  This Award was granted in consideration of your past services to the Company and its Affiliates.  Subject to Section 10 below, you will not be required to make any payment to the Company with respect to your receipt of the Award or the vesting thereof.

 

4. Securities Law Compliance.  You will not be issued any shares of Common Stock under your Award unless either (a) such shares are then registered under the Securities Act or (b) the Company has determined that such issuance would be exempt from the registration requirements of the Securities Act.  Your Award must also comply with other applicable laws and regulations governing the Award, and you will not receive such shares if the Company determines that such receipt would not be in material compliance with such laws and regulations.

 

5. Transfer Restrictions.  Prior to the time that they have vested, you may not transfer, pledge, sell or otherwise dispose of the shares of Common Stock subject to the Award.  For example, you may not use shares subject to the Award that have not vested as security for a loan.  This restriction on the transfer of shares will lapse with respect to vested shares when such shares vest.  Notwithstanding the foregoing, you may, by delivering written 

 

  

iii

  

 

notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of your death, shall thereafter be entitled to receive vested shares as of the date of your death.

 

6. Termination of Continuous Service.

 

(a) Except as may be provided in your Employment Agreement and subject to Section 1 hereof, in the event your Continuous Service terminates for reasons other than your death or Disability (as that term is defined in your Employment Agreement or the Plan, as applicable), you will be credited with the vesting that has accrued under your Award as of the date of your termination of Continuous Service.  Except as may be provided in your Employment Agreement and subject to Section 1 hereof, you will accrue no additional vesting of your Award following your termination of Continuous Service.  To the extent your Award is not vested on the date of your termination, it shall automatically lapse on such date.

 

(b) In the event your Continuous Service terminates due to your death, the Award automatically shall become vested in full as of the date of your death and your rights under the Award shall pass by will or the laws of descent and distribution; provided, however, that you may designate a beneficiary to receive your vested shares as set forth in Section 5 hereof.

 

(c) In the event your Continuous Service terminates due to your Disability (as that term is defined in your Employment Agreement or the Plan, as applicable), the Award automatically shall become vested in full as of the date of your termination of Continuous Service.

 

7. Restrictive Legends.  The shares issued under your Award shall be endorsed with appropriate legends determined by the Company as applicable.

 

8. Rights as a Stockholder. You shall exercise all rights and privileges of a stockholder of the Company with respect to the shares subject to your Award.  You shall be deemed to be the holder of the shares for purposes of receiving any dividends and other distributions which may be paid with respect to such shares and for purposes of exercising any voting rights relating to such shares, even if some or all of such shares have not yet vested; provided, however, that any such dividends or distributions will be withheld unless and until the underlying shares vest and will be subject to the same forfeiture restrictions and restrictions on transferability as apply to the shares of Common Stock subject to your Award.

 

9. Award not a Service Contract.  Your Award is not an employment or service contract, and nothing in your Award shall be deemed to (i) alter the terms of your Employment Agreement or (ii) create in any way whatsoever any obligation on your part to continue in the employ of the Company or any Affiliate thereof, or on the part of the Company or any Affiliate thereof to continue your employment or service.  In addition, nothing in your Award shall obligate the Company or any Affiliate thereof, their respective stockholders, boards of directors, officers or employees to continue any relationship that you might have as a director or consultant for the Company or any Affiliate thereof.

 

10. Withholding Obligations.

 

(a) At the time your Award is made, or at any time thereafter as requested by the Company, you hereby authorize withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or any Affiliate thereof, if any, which arise in connection with your Award.  Such withholding obligations may be satisfied by your relinquishment of your right to receive a portion of the shares otherwise issuable to you pursuant to the Award; provided, however, that you shall not be authorized to relinquish your right to shares with a fair market value in excess of the amount required to satisfy the minimum amount of tax required to be withheld by law.

 

(b) Unless the tax withholding obligations of the Company and/or any Affiliate thereof are satisfied, the Company shall have no obligation to issue any stock certificates or uncertificated shares for such shares or release such shares from any escrow provided for herein.

 

  

iv

  

 

11. Tax Consequences.   The acquisition and vesting of the shares may have adverse tax consequences to you that may be mitigated by filing an election under Section 83(b) of the Code.  Such election must be filed within thirty (30) days after the date of the grant of your Award.  YOU ACKNOWLEDGE THAT IT IS YOUR OWN RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE A TIMELY ELECTION UNDER CODE SECTION 83(B), EVEN IF YOU REQUEST THE COMPANY TO MAKE THE FILING ON YOUR BEHALF.

 

12. Notices.  Any notices provided for in your Award or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company.  Notwithstanding the foregoing, the Company may, in its sole discretion, decide to deliver any documents related to participation in the Plan and this Award by electronic means or to request your consent to participate in the Plan by electronic means.  You hereby consent to receive such documents by electronic delivery and, if requested, to agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

 

13. Miscellaneous.

 

(a)   The rights and obligations of the Company under your Award shall be transferable to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by the Company’s successors and assigns. Your rights and obligations under your Award may only be assigned with the prior written consent of the Company.

 

(b) You agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company to carry out the purposes or intent of your Award.

 

(c) You acknowledge and agree that you have reviewed your Award in its entirety, have had an opportunity to obtain the advice of counsel prior to executing and accepting your Award and fully understand all provisions of your Award.

 

14. Governing Plan Document.  Your Award is subject to all the provisions of the Plan, the provisions of which are hereby made a part of your Award, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan.  In the event of any conflict between the provisions of your Award and those of the Plan, the provisions of the Plan shall control.

 

 

vexhibit10_1.htm

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

NINTH AMENDMENT TO AMENDED AND RESTATED

PRIVATE LABEL CONSUMER CREDIT CARD PROGRAM AGREEMENT

This NINTH AMENDMENT TO AMENDED AND RESTATED PRIVATE LABEL CONSUMER CREDIT CARD PROGRAM AGREEMENT (this “Amendment”) is made and entered into this 29th day of June, 2011, by and between GE Money Bank (“Bank”), and Select Comfort Corporation (“Select Comfort”) and Select Comfort Retail Corporation (“SCRC” and collectively with Select
Comfort “Retailer”) to amend that certain Amended and Restated Private Label Consumer Credit Card Program Agreement dated as of December 14, 2005 (as amended, modified and supplemented from time to time, the “Agreement”) among such parties.  Capitalized terms used herein and not otherwise defined have the meanings given them in the Agreement.

 

WHEREAS, Bank and Retailer are parties to the Agreement, and it is their mutual desire that the Agreement be amended in accordance with the terms and conditions set forth herein, including, without limitation, to extend the Term of the Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises and subject to the terms and conditions hereinafter set forth, the parties hereby agree as follows:

 

I.           AMENDMENTS TO AGREEMENT

 

1.1           Amendment to Section 3.5(a).  Section 3.5(a) of the Agreement is hereby deleted in its entirety and replaced with the following:

 

(a)           The Program Fee Percentages available under the Program as of the Ninth Amendment Effective Date are set forth on Schedule 3.5.

 

1.2           Amendment to Section 3.5(b).  The first sentence of Section 3.5(b) of the Agreement is hereby deleted in its entirety and replaced with the following:

 

Beginning at the first anniversary of the Ninth Amendment Effective Date and as of the end of each twelve (12) month period thereafter during the Term, Bank, in conjunction with Retailer, will review and evaluate the effectiveness of the Program generally (including the credit based promotion sales mix, the overall level of sales charged to Accounts, and Account fraud and credit losses during such period), as well as evaluating the performance of each credit based promotion during such period.

 

1.3           Amendment to Section 3.6.  Section 3.6 of the Agreement is hereby deleted in its entirety and replaced with the following:

 

        3.6    Interest Rate Adjustor.  (a)  Without limiting Bank's right to adjust the Program Fee Percentages as set forth in Section 3.5, Bank may adjust the Program Fee Percentage quarterly for each credit-based promotion then offered to Cardholders by Bank based on movements in the twelve Month LIBOR as set forth below in this Section

 

 

  

  

  

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

3.6.  Following the Ninth Amendment Effective Date, adjustments to the Program Fee Percentages set forth on Schedule 3.5 based on movements in the Twelve Month LIBOR shall be calculated and implemented as follows:  (x) any prior adjustment to such Program Fee Percentages pursuant to this Section 3.6 shall be eliminated, and (y) with respect to each such Program Fee Percentage, Bank shall adjust (either up or down) such Program Fee Percentage by:

 

(i)           in the case of a Program Fee Percentage applicable to a “with pay” credit based promotion of less than twelve (12) months in duration, [***] for every 0.25% (25 basis points) movement in the Twelve Month LIBOR above or below the Base Twelve Month LIBOR, [***] in such credit based promotion;

 

(ii)           in the case of a Program Fee Percentage applicable to a “with pay” credit based promotion of twelve (12) months or more in duration, [***] for every 0.25% (25 basis points) movement in the Twelve Month LIBOR above or below the Base Twelve Month LIBOR, [***] in such credit based promotion;

 

(iii)           in the case of a Program Fee Percentage applicable to an “equal pay” credit based promotion of less than thirty-six (36) months in duration, [***] for every 0.25% (25 basis points) movement in the Twelve Month LIBOR above or below the Base Twelve Month LIBOR, [***] in such credit-based promotion

 

(iv)           in the case of a Program Fee Percentage applicable to an “equal pay” credit based promotion of thirty-six (36) months or more in duration, [***] for every 0.25% (25 basis points) movement in the Twelve Month LIBOR above or below the Base Twelve Month LIBOR, [***] in such credit-based promotion

 

(v)           in the case of a Program Fee Percentage applicable to a “fixed pay” credit based promotion, [***] for every 0.25% (25 basis points) movement in the Twelve Month LIBOR above or below the Base Twelve Month LIBOR, [***] in such credit-based promotion

 

For purposes of effecting the above calculation, Bank shall establish the Twelve Month LIBOR for a given calendar quarter as of the last business day of the calendar quarter immediately preceding such given calendar quarter and shall apply any revised Program Fee Percentages resulting from such calculation as of the first day of the second month in such given calendar quarter (and such revised Program Fee Percentage shall apply for the succeeding period of approximately 90 days until again adjusted in accordance with this Section 3.6).  If the cost of funds adjustment calculation set forth in this Section 3.6 results in a Program Fee Percentage that is less than zero, such Program Fee Percentage shall,
irrespective of such calculation, be deemed to equal zero and Bank shall have no obligation to rebate any amounts to Retailer in connection with the applicable credit-based promotion related to such Program Fee Percentage.  For the avoidance of doubt, (i) the adjustment (either up or down) to any Program Fee Percentage pursuant to this Section will be in addition to any other prior adjustments (either up or down) made to any

 

 

2

  

  

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

Program Fee Percentage pursuant to any provision of Section 3.5, and (ii) no adjustment pursuant to this Section shall eliminate any prior adjustments (either up or down) made to any Program Fee Percentage pursuant to any provision of Section 3.5.

 

Each adjustment to the Program Fee Percentages pursuant to this Section 3.6 shall be applied prospectively only.  For clarification purposes only, examples of the foregoing calculations are set forth on the attached Schedule 3.6.

 

1.4           Amendment to Section 4.3.  Section 4.3 of the Agreement is hereby deleted in its entirety and replaced with the following:

 

4.3           Volume Rebate.   Provided that no event has occurred which would allow Bank to terminate this Agreement under Section 9.2, Bank shall pay to Retailer a “Volume Rebate” within sixty (60) days after the end of each calendar year during the Term, beginning with the January 1, 2011 through December 31, 2011 calendar year, as follows:  (i) if Net Program Sales during such calendar year increase by at least [***] but less than [***] from the greater of (a) Net
Program Sales for the calendar year immediately preceding such calendar year and (b) [***], Bank shall pay Retailer an amount equal to the Net Program Sales for such calendar year multiplied by [***]; (ii) if Net Program Sales during such calendar year increase by at least [***] but less than [***] from the greater of (a) Net Program Sales for the calendar year immediately preceding such calendar year and (b) [***], Bank shall pay Retailer an amount equal to the Net Program Sales for such calendar year multiplied by [***]; and (iii) if Net Program Sales during such calendar year increase by [***] or more from the greater of (a) Net Program Sales for the calendar year immediately preceding such calendar year and (b) [***], Bank shall pay Retailer an amount equal to the Net
Program Sales for such calendar year multiplied by [***].  For the avoidance of doubt, Bank shall have no obligation to pay Retailer the Volume Rebate for any calendar year where the Net Program Sales during such calendar year increased by less than [***].

 

1.5           Amendment to Section 6.4.  The last sentence in Section 6.4 of the Agreement is hereby deleted in its entirety and replaced with the following

 

	
  

	
         Bank will consult with Retailer regarding any changes to the credit criteria used for the Program which, in Bank’s reasonable opinion, could reasonably be expected to have a material adverse affect on the Program and will notify Retailer in writing prior to the implementation of any such change.

 

1.6           Amendment to Section 9.1.  Section 9.1 of the Agreement is hereby deleted in its entirety and replaced with the following:

 

9.1           Program Term.  This Agreement shall continue until February 15, 2016 and shall automatically renew for additional two (2) year terms (each such period, a “Term”), unless either party shall give written notice to the other party at least twelve

 

3

  

  

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

 

(12) months prior to the end of the scheduled expiration of such Term of its intention to terminate the Program.

 

1.7           Amendment to Section 9.2(m).  Section 9.2(m) of the Agreement is hereby deleted in its entirety and replaced with the following:

 

(m)           (i) Retailer shall have the right to terminate the Agreement as set forth below if, pursuant to Section 3.5(b), Bank elects to increase the Program Fee Percentages set forth on Schedule 3.5 (in each case “New Pricing”); provided, that Retailer may not elect to terminate this Agreement under this Section 9.2(m) unless the New Pricing would, assuming implementation of such New Pricing on the date such New Pricing is proposed (even if Bank’s notice
of New Pricing indicates a later effective date), result in Increased Net Cost of Sales of [***], which calculation shall exclude [***] contemplated in Section 3.6 (by way of example, if Retailer’s Net Cost of Sales was [***] and the New Pricing would result in Net Cost of Sales of [***], then the [***] Net Cost of Sales threshold would be exceeded).  If the Increased Net Cost of Sales threshold has been exceeded, Retailer may only terminate this Agreement under this Section 9.2(m) after it has completed the “Competitive Pricing Procedures”.

(ii) For purposes of this Section 9.2(m), “Competitive Pricing Procedures” means the procedures set forth in clauses (ii)-(iv) of Section 9.2(m), which shall be implemented if (1) the Increased Net Cost of Sales exceeds the threshold amount set forth in Section 9.2(m)(i) above or the Aggregate Increased Net Cost of Sales exceeds the threshold amount set forth in Section 9.2(m)(vi) below, and (2) Retailer asserts that such New Pricing is materially non-competitive.  In such case, Retailer will have sixty (60) days from the date of Bank’s notice to Retailer setting forth
the proposed New Pricing to obtain a bona fide written proposal from an issuer of private label credit programs (“Competing Offer”) and to submit such Competing Offer to Bank.  If Retailer fails to submit a Competing Offer within such period, then Retailer’s option to terminate this Agreement as a result of such New Pricing will expire.

(iii) If Retailer presents Bank with a Competing Offer within such period and within thirty (30) days thereafter Bank provides Retailer a proposal (a “Bank Proposal”) with terms and conditions that are more favorable than such Competing Offer in an economic sense, taking into account all of the proposed terms of the Competing Offer relevant to the terms of the Bank Proposal and the Program (provided that if any Competing Offer is presented to Bank during the fourth calendar year after the Ninth Amendment Effective Date, the terms and conditions of any Bank Proposal will only be deemed to be
more favorable than the Competing Offer if the Cost of Funds Differential (as defined in Appendix A) is at least [***] and no other cost or fee is imposed pursuant to the Bank Proposal and no other material term in this Agreement is changed), then such Bank Proposal will be implemented upon Retailer’s agreement that such Bank Proposal is more favorable.

(iv) If Retailer presents Bank with a Competing Offer within such period and Bank does not present Retailer with a Bank Proposal that is more favorable than such Competing Offer pursuant to Section 9.2(m)(iii) above, then over the sixty (60) day period following Bank’s receipt of the Competing Offer (the “Negotiation Period”), Retailer and Bank

 

 

4

  

  

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

will use commercially reasonable efforts to endeavor to negotiate mutually agreeable New Pricing.  If Retailer and Bank are unable to agree on New Pricing by the end of the Negotiation Period, [***].

(v) In each case, regardless of whether Retailer terminates this Agreement, any New Pricing shall become effective immediately upon the effective date designated in Bank’s notice thereof to Retailer (provided that any New Pricing shall be designated to be effective no sooner than 45 days after the date that Bank’s notice is given, and for the avoidance of doubt, such notice requirement shall not apply to adjustments made pursuant to Section 3.6) and shall thereafter remain effective until subsequently revised in accordance with this Agreement (including Section 3.5(b) and Section 9.2(m)), the Final Liquidation Date or the date when Bank and Retailer agree
on other pricing.

(vi) In addition, if New Pricing would result in Aggregate Increased Net Cost of Sales of [***] during the period starting with the Ninth Amendment Effective Date and ending February 15, 2016, which calculation shall exclude any cost of funds adjustments contemplated in Section 3.6, Retailer may also terminate the Agreement under this Section 9.2(m) after it has completed the Competitive Pricing Procedures.

1.8           Amendment to Section 9.2(n).   The reference to “ninety (90) days” in clause (ii) of Section 9.2(n) of the Agreement is hereby deleted in its entirety and replaced with the following:

 

	
  

	
 “forty-five (45) days”

	
  

	 

1.9           New Definitions.  The following definitions are hereby added to Appendix A to the Agreement:

 

“Aggregate Increased Net Cost of Sales” means, as of any date on which the Bank proposes New Pricing, the amount (expressed as a percentage) by which the Net Cost of Sales for Retailer for the twelve (12) month period immediately following the Ninth Amendment Effective Date (if Bank’s proposed New Pricing had been effectuated at the beginning of such twelve (12) month period) would have exceeded Retailer’s actual Net Cost of Sales during such twelve (12) month period.

 

“Base Twelve Month LIBOR” means 1.00%.

 

“Bank Offer Net Cost of Sales” means, as of any date, the percentage cost to Retailer of financed sales on all Common Promotions assuming implementation of the pricing set forth in the Bank Proposal for such Common Promotions, expressed in basis points, represented by the quotient, the numerator of which is aggregate fees that would have been paid by Retailer net of any amounts paid to Retailer by Bank, including any rebates or credits earned under the Program such as the Volume Rebate pro-rated as to the Common Promotions, during the twelve (12) month period immediately preceding such date
if the pricing set forth in the Bank Proposal for the Common Promotions had been implemented at the beginning of such twelve

 

5

  

  

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

(12) month period and the denominator of which is Net Program Sales attributable to the Common Promotions for such period.

 

“Common Promotions” means all credit based promotions available under the Program the functional equivalents of which are also proposed in a Competing Offer.  For example, a 48 Month With Payment No Interest credit based promotion would be deemed a Common Promotion if a 48 Month With Payment No Interest credit based promotion was available under the Program and also under the Competing Offer.  However, a 48 Month With Payment No Interest credit based promotion would not be deemed a Common Promotion if it were only available under the Competing Offer and not the
Program.

 

“Competing Offer Net Cost of Sales” means, as of any date, the percentage cost to Retailer of financed sales on all Common Promotions assuming implementation of the pricing set forth in the Competing Offer for such Common Promotions, expressed in basis points, represented by the quotient, the numerator of which is aggregate fees that would have been paid by Retailer net of any amounts that would have been paid to Retailer by the offeror of the Competing Offer in connection with such Competing Offer, including any rebates or credits which would have been earned by Retailer under the Competing
Offer pro-rated as to the Common Promotions, during the twelve (12) month period immediately preceding such date if the pricing set forth in the Competing Offer for the Common Promotions had been implemented at the beginning of such twelve (12) month period and the denominator of which is Net Program Sales attributable to the Common Promotions for such period.

 

“Cost of Funds Differential” means, as of any date, the amount (expressed as a percentage) by which the Competing Offer Net Cost of Sales exceeds or is below the Bank Offer Net Cost of Sales.

 

 “Ninth Amendment Effective Date” means June 29, 2011.

 

1.10          Deleted Definitions.  The following definitions in Appendix A to the Agreement are hereby deleted in their entirety:

 

                  “Base LIBOR Rate” shall mean, for any credit-based promotion, the Three Month LIBOR or Twelve Month LIBOR, as applicable, in effect at the time of the last adjustment to a Retailer Promotion Fee Percentage. The Base LIBOR Rate as of January 1, 2009 shall be 1.43% for the Three Month LIBOR and 2.00% for the Twelve Month LIBOR.

 

  “LIBOR Rate” shall mean, as applicable, the Three Month LIBOR or the Twelve Month LIBOR.

 

  “LIBOR Rater Trigger Movement” shall mean, as of the end of any calendar quarter, after taking into account all movements in the LIBOR Rate, an increase or decrease in the LIBOR Rate, relative to the Base LIBOR Rate, equal to at least 25 basis points (0.25%).

 

6

  

  

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

         “Third Amendment Effective Date” means January 1, 2009, the effective date of the Third Amendment to Amended and Restated Private Label Consumer Revolving Credit Card Program Agreement by and between Bank and Retailer.

 

  “Three Month LIBOR” means, for any date, the three (3) month “London Interbank Offered Rate” (LIBOR) as published in The Wall Street Journal in its “Money Rates” section (or if The Wall Street Journal shall cease to be published or to publish such rates, in such other publication as Bank may, from time to time, specify) on such date, or if The Wall Street Journal is not published on such date, on the last day before such date on which The Wall Street Journal is published whether or not such rate is actually ever charged or paid by any entity.

 

1.11           Amendment to Schedule 3.5.   Schedule 3.5 to the Agreement is hereby deleted in its entirety and replaced the revised Schedule 3.5 attached to this Amendment.

 

1.12           New Schedule 3.6.  The new Schedule 3.6 attached to this Amendment is hereby added to the Agreement immediately following Schedule 3.5   

 

1.13           Amendment to Schedule 6.7.  Schedule 6.7 to the Agreement is hereby deleted in its entirety and replaced with the revised Schedule 6.7 attached to this Amendment.

 

II.           GENERAL

 

2.1           Authority for Amendment.  The execution, delivery and performance of this Amendment has been duly authorized by all requisite corporate action on the part of Retailer and Bank and upon execution by all parties will constitute a legal, binding obligation thereof.

 

2.2           Effect of Amendment.  Except as specifically amended hereby, the Agreement, and all terms contained therein, remains in full force and effect.  The Agreement, as amended by this Amendment, constitutes the entire understanding of the parties with respect to the subject matter hereof.

 

2.3           Binding Effect; Severability.  Each reference herein to a party hereto shall be deemed to include its successors and assigns, all of whom shall be bound by this Amendment and in whose favor the provisions of this Amendment shall inure.  In case any one or more of the provisions contained in this Amendment shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

 

2.4           Further Assurances.  The parties hereto agree to execute such other documents and instruments and to do such other and further things as may be necessary or desirable for the execution and implementation of this Amendment and the consummation of the transactions contemplated hereby and thereby.

 

2.5           Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of Utah.

 

7

  

  

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

2.6           Counterparts.  This Amendment may be executed in counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one agreement.

 

8  

  

  

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their duly authorized officers, all as of the day and year first above written.

 

	
SELECT COMFORT CORPORATION

 

 

By:  /s/ Mark A. Kimball                                                               

Its: SVP and General Counsel   

                                       

	
SELECT COMFORT RETAIL CORPORATION

 

 

By:  /s/ Mark A. Kimball                                                               

Its: SVP and General Counsel                                         

	
 

GE MONEY  BANK

 

 

By:  /s/ Glenn Marino                                                            

Its: Executive Vice President                                          

 

9  

  

  

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

SCHEDULE 3.5

To

Credit Card Program Agreement

Program Fee Percentages

	
RETAIL

	  
	
Promo Plan

	
Program Fee Percentage

	
6 WPDI

	
[***]

	
12 WPDI

	
[***]

	
18 WPDI

	
[***]

	
24 WPDI

	
[***]

	
24 EPNI

	
[***]

	
36 EPNI

	
[***]

	  	  
	
DIRECT; 

ECOM

	  
	
Promo Plan

	
Program Fee Percentage

	
6 WPDI

	
[***]

	
12 WPDI

	
[***]

	
18 WPDI

	
[***]

	
24 WPDI

	
[***]

	
24 EPNI

	
[***]

	
36 EPNI

	
[***]

 

 

  

  

  

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

SCHEDULE 3.6

To

Credit Card Program Agreement

Interest Rate Adjustor Calculations

	
Discount Rate Adjustments based on changes in 12 Month Libor (Current Active Promo offers)

	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	
BASE LIBOR: 1.00%

	  	  
	
Promo  Type

	
Adjustor

	
Adjustor per 25 bps (1 click)

	
                                    LIBOR RATE RANGES - Cost of Funds Pricing Schedule

	
With Pay/Deferred Interest

	
Formula

	
change in Base Libor

	
0.26% thru .50%

	
.51% thru .75%

	
.76% thru 1.24%

	
1.25% thru 1.49%

	
1.5% thru 1.74%

	
1.75% thru 1.99%

	
2.00% thru 2.24%

	
RETAIL 6 Months

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
DIRECT/ECOM 6 Months

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
RETAIL 12 

Months

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
DIRECT/ECOM 12 Months

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
RETAIL 18 

Months

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
DIRECT/ECOM 18 Months

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
RETAIL 24 

Months

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
DIRECT/ECOM 24 Months

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	  	  	  	  	  	  	  	  	  
	
Equal Payments/ No Interest

	  	  	  	  	  	  	  	  	  
	
RETAIL 24 Months

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
DIRECT/ECOM 24 Months

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
 

RETAIL 36 Months

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
DIRECT/ECOM 36 Months

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

  

  

  

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

For purposes of clarification only, the following is an example of how the interest rate adjustor will be calculated:

 

1.  As of the Ninth Amendment Effective Date, the Program Fee Percentages shall be as set forth on Schedule 3.5 and such Program Fee Percentages were established based on the Base Twelve Month LIBOR of 1.00%.

 

2. If at the end of the calendar quarter ending on June 30, 2011 the Twelve Month LIBOR is 0.74% (a movement of 26 bps from the Base Twelve Month LIBOR Rate), then the Program Fee Percentages will be adjusted in accordance with Section 3.6 of this Agreement to the rates set forth above in this Schedule 3.6 under the >.51% and £0.75% LIBOR increment.  Such adjusted Program Fee Percentages will be effective as of the first day of the second month of the calendar quarter beginning on July 1, 2011 (i.e., such rates will be implemented on August 1, 2011) and will remain in effect until
the Program Fee Percentages for the next quarterly adjustment become effective (as described below).

 

3.  At the end of the calendar quarter ending on September 30, 2011, adjustments to the then current Program Fee Percentages will made as follows:  (1) the adjustments made to the Program Fee Percentages described in Item 2 above will be eliminated, (2) the Program Fee Percentages will revert to those set forth above in this Schedule 3.6 under the >.76% and <1.25 LIBOR increment, (3) any adjustments to the Program Fee Percentages for the calendar quarter beginning on October 1, 2011 will be determined in accordance with Section 3.6 of the Agreement based on the movement of
the Twelve Month LIBOR as compared to the Base Twelve Month LIBOR of 1.00%, (4) any adjusted Program Fee Percentages will become effective as of the first day of the second month of the calendar quarter beginning on October 1, 2011 (i.e. such rates will be implemented on November 1, 2011), and (5) the Program Fee Percentages in effect prior to the foregoing adjustment will remain in effect until the first day of the second month of the  calendar quarter that begins on October 1, 2011 (i.e. such rates will remain in effect until November 1, 2011).

 

4.  If at the end of the calendar quarter ending on September 30, 2011, the Twelve Month LIBOR is 0.99% (a movement of 1 bp from the Base Twelve Month LIBOR Rate of 1.00%), then (1) effective as of November 1, 2011, the Program Fee Percentages for the calendar quarter

 

  

  

  

 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

beginning on October 1, 2011 will be those set forth above in this Schedule 3.6 under the >.76% and <1.25 LIBOR increment because the movement of 1 bp does not exceed the 25 bps movement necessary for an additional adjustment, and (2) the Program Fee Percentages in effect pursuant to Item 2 above will remain in effect until November 1, 2011.

 

5.  For the avoidance of doubt the foregoing example does not account for any pricing adjustments (other than for cost of funds) that may be made pursuant to the Agreement.

 

  

  

  

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

SCHEDULE 6.7

To

Credit Card Program Agreement

Financial Covenants

I.  Financial Covenants

Minimum Tangible Net Worth.  Retailer shall, at all times, maintain a Tangible Net Worth equal to or greater than Thirty Million Dollars ($30,000,000).

Minimum Cash.  Retailer shall, as of the end of each fiscal quarter of Retailer, maintain Cash equal to or greater than Fifty Million Dollars ($50,000,000).

 

II. Definitions

As used in this Schedule 6.7, the following terms have the following meanings:

 

“GAAP” means generally accepted accounting principles applicable in the United States, consistently applied; provided that, if any change to GAAP after the date hereof shall materially affect computations determining compliance with the financial ratios and covenants set forth herein or otherwise in the Agreement, if either Bank or Retailer shall so request, the Bank and Retailer shall negotiate in good faith to amend such ratios or covenants to preserve the original intent thereof in light of such change in GAAP; provided further that, until so amended, (a) such ratio or restriction shall continue to be computed in accordance with GAAP
prior to such change therein and (b) Retailer shall provide to the Bank financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratios or restrictions made before and after giving effect to such change.

 

“Intangible Assets” means, with respect to any entity and as of any date of determination, the sum of (i) all of such entity’s assets which should be classified as intangible assets (such as goodwill, patents, trademarks, copyrights, franchises, and deferred charges including unamortized debt discount and research and development costs) in accordance with GAAP, (ii) cash held in a sinking or other similar fund established for the purpose of redemption or other retirement of capital stock, and (iii) to the extent not already deducted from total assets, reserves for depreciation, depletion, obsolescence or amortization of properties and
other reserves or appropriations of retained earnings which have been or should be established in connection with business operation.

 

“Cash” means any US Treasury instrument or investment grade securities (to include either investment grade corporate or government debt) which are highly liquid and have maturity of less than 36 months, currency on hand, demand deposits and cash equivalent instruments in investment accounts that are not legally restricted as to usage or withdrawal.

“Net Worth” means, with respect to any entity and as of any date of determination, all items which should be included as assets of such entity, less all items which should be included as liabilities of such entity, in each case, determined in accordance with GAAP. 

  

  

  

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED BY SELECT COMFORT CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION (the “COMMISSION”), CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. THIS INFORMATION HAS BEEN DENOTED BY ASTERISKS [***].

 

“Tangible Net Worth” means, with respect to any entity and as of any date of determination, the Net Worth of such entity, less the amount of such entity’s Intangible Assets.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00197-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00197-of-00352.parquet"}]]