Document:

Exhibit 10.6

 

 

CONFIDENTIAL TRANSITION AND RELEASE AGREEMENT

 

This Confidential Transition and Release Agreement (“Agreement”) effective as of March 1, 2018 (the “Effective Date”) is entered into between YETI Coolers LLC, a Delaware limited liability company (together with any affiliated companies, the “Company”) and Richard J. Shields (“Employee”). This Agreement supersedes and replaces the Employment Agreement dated November 6, 2015 (“Employment Agreement”) between the Company and Employee, except with respect to specific provisions incorporated herein. In consideration of the mutual promises herein, the Company and Employee (each, a “Party”) have agreed as follows:

 

1.                                      Separation. Employee’s employment is being terminated effective no later than May 31, 2018 (the “Anticipated Separation Date”). The actual date of Employee’s employment termination will be referred to as the “Separation Date.” The period of time between the Effective Date and the Separation Date is referred to as the “Transition Period.”

 

2.                                      Consideration. If Employee signs and returns this Agreement within the period set forth in Section 15 and does not revoke the Agreement within seven (7) calendar days thereafter, then the Company will provide Employee with the following benefits:

 

a.              Employee will be permitted to resign his employment effective on the Anticipated Separation Date.

 

b.              The Company will allow Employee to state that he is resigning his employment for “personal reasons” and will ensure that the Company’s communications regarding Employee’s separation are consistent with this messaging.  The Company intends to announce that Employee is resigning his employment approximately sixty (60) days prior to the Anticipated Separation Date.

 

c.               During the Transition Period, Employee will remain an at-will employee of the Company, will continue to receive his base salary at his regular rate as of the Effective Date in accordance with the Company’s normal payroll practices and will be subject to all applicable legal obligations of an employee at the executive level, including, but not limited to, continued compliance with the Company’s Employee Handbook, Section 7 of the Employment Agreement, and any other agreements between Employee and the Company.  During the Transition Period, Employee will be an officer of the Company, such that Employee will continue to be an officer under the Company’s existing directors and officers insurance policy and will continue to be entitled to indemnification pursuant to the Company’s certificate of incorporation to the same extent and subject to the same conditions, restrictions or limitations as the other officers of the Company.

 

d.              Provided that Employee remains employed by the Company through at least the Anticipated Separation Date and that Employee signs and does not revoke a supplemental release of claims within twenty-one (21) days after the Separation Date, Employee will receive the following additional consideration (“Severance Consideration”):

 

i.                  an additional lump sum payment equivalent to twelve (12) months of Employee’s base salary at his regular rate as of the Effective Date; and

 

 

ii.               acceleration of all 180,000 unvested shares subject to the stock option (the “Option”) governed by the Amended and Restated Nonqualified Stock Option Agreement dated as of March 23, 2016 (as amended and modified by that certain letter dated as of May 19, 2016, the “Option Agreement”) and extension of the post-termination exercise period under the Option Agreement to August 31, 2019.

 

e.               If Employee voluntarily resigns his employment or is terminated for Cause (as defined herein) during the Transition Period, then, provided he signs and does not revoke a supplemental release of claims within twenty-one (21) days following such resignation or termination for Cause, Employee will receive any remaining salary covering the time period between the effective date of such resignation or termination for Cause and the Anticipated Separation Date, and he will not be eligible for the Severance Consideration.

 

f.                If Employee is terminated without Cause during the Transition Period, then, provided he signs and does not revoke a supplemental release of claims within twenty-one (21) days following such termination without Cause, he will receive (i) any remaining salary covering the time period between the effective date of such termination without Cause and the Anticipated Separation Date and (ii) the Severance Consideration.

 

g.               For purposes of this Agreement, “Cause” is defined as: (i) the commission by Employee of a felony or a fraud, (ii) conduct by Employee that brings the Company or any subsidiary or affiliate of the Company into substantial public disgrace or disrepute, (iii) gross negligence or gross misconduct by Employee with respect to the Company or any subsidiary or affiliate of the Company, (iv) repudiation by Employee of this Agreement or Employee’s abandonment of Employee’s employment with the Company or any subsidiary, (v) Employee’s insubordination or failure to follow the directions of the CEO, the Board or the Board of Directors of any subsidiary or affiliate, which, if curable, is not cured within three (3) days after written notice thereof to Employee, (vi) Employee’s violation of (A) Employee’s confidentiality obligations with respect to the Company’s and any subsidiary’s or affiliate’s confidential information, knowledge or data or (B) Employee’s agreement to not engage in competition with the Company or any subsidiary or affiliate, (vii) Employee’s breach of a material employment policy of the Company which, if curable, is not cured within three (3) days after written notice thereof to Employee, (viii) any other breach by Employee of this Agreement or any other agreement with the Company or any subsidiary or affiliate which is material and which, if curable, is not cured within five (5) days after written notice thereof to Executive, or (ix) Employee’s breach of any of the obligations set forth in Section 3 of this Agreement.

 

h.              All payments pursuant to this Section 2 are subject to applicable withholding.

 

i.                  Employee and the Company shall enter into a consulting agreement on the Company’s standard form pursuant to which Employee shall agree to provide consulting services to the Company for the seven (7) month period following the Separation Date for a monthly retainer of $2,000, with a commitment not to exceed 10 hours per month.  The Company shall have the option to terminate such consulting agreement upon five (5) days written notice.

 

j.                 Employee acknowledges and agrees the opportunity to receive the benefits in this Section 2 is more than Employee is otherwise legally entitled to receive and constitutes good and valuable consideration.

 

3.                                      Transition Period.  As a material inducement to the Company to enter into this Agreement, Employee agrees to the following conditions regarding the Transition Period. Any breach of the following terms will render Employee ineligible for the Severance Consideration, and if Employee

 

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has already received the Severance Consideration at the time of such breach, Employee will be obligated to repay such amounts to the Company within thirty (30) days of Employee’s receipt of written notice of such breach.

 

a.              Employee acknowledges and agrees that at all times during the Transition Period he must remain in strict compliance with the Company’s employment policies, including but not limited to its anti-harassment policy.

 

b.              Employee acknowledges and agrees to perform his job duties to the best of his professional ability during the Transition Period and to act consistently with his fiduciary duty to the Company at all times.

 

c.               Employee acknowledges and agrees that Section 7 of his Employment Agreement remains in effect and that he must remain in compliance with its terms.

 

d.              Employee agrees to cooperate with the Company with respect to transition announcements and any communications regarding his separation from employment.

 

e.               Employee acknowledges and agrees that confidentiality is of the essence to this Agreement and that he must keep its terms, including the underlying discussions regarding such terms, in strictest confidence. The Company acknowledges and agrees that any privileged communications with Employee’s legal counsel, tax advisor and spouse will not be a violation of this Section 3.

 

4.                                      Stock Option.  As of the Effective Date, and without giving effect to the Severance Consideration, 88,000 shares subject to Option are vested and exercisable, such that 180,000 shares subject to the Option are not vested and are not exercisable.  Except as set forth herein, the Option Agreement shall remain in full force and effect.

 

5.                                      Return of Company Property and Expense Reimbursement. Employee agrees that upon separation, he will immediately return to the Vice President of Talent (or her designee) his company badge and all other property of the Company. By signing this Agreement, Employee consents and agrees that if he fails to return any Company property, the Company may deduct the value of that property from any net payments under this Agreement. Employee acknowledges and agrees that his advance consent to these deductions constitutes a waiver by him of any rights or causes of actions under the Texas Payment of Wages Act (Texas Payday Law) with respect to such deductions.

 

6.                                      Third Party Assistance, Non-Disparagement and Cooperation with Company. Employee agrees Employee will not counsel, assist, participate in, or encourage any persons in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against the Company or any other Released Party (as defined below). Employee further agrees Employee will not, directly or indirectly, in any individual or representative capacity, make any statement, oral or written, which could reasonably be expected to be harmful in any material respect to the reputation or goodwill of the Company or any other Released Party. Employee and the Company agree Employee’s compliance with a subpoena or other legally compulsive process shall not violate the terms of this paragraph; Employee agrees, however, to provide Company’s General Counsel written notice of any such legally compulsive process within 48 hours of Employee’s receiving it. In addition, nothing in this Agreement shall interfere with Employee’s right to file a charge with a governmental agency or to cooperate with a governmental investigation, although Employee will not be able to recover monetary damages in any suit brought

 

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by a governmental agency or otherwise, unless the waiver contained in this Agreement is held to be unenforceable and even then only to the extent it is held to be unenforceable.

 

For a period of four (4) years following the Separation Date, Employee will be available to the Company and provide the Company, its advisors and its legal counsel with assistance and information in connection with any pending or potential inquiry, claim, lawsuit, investigation, audit or other legal proceeding (“Proceeding”) that relates in any manner to Employee’s conduct or duties at the Company or that are based in any way on facts about which Employee obtained personal knowledge while employed with the Company. Such cooperation shall include Employee making himself available at reasonable times and places for interviews, reviewing documents, providing truthful testimony in a deposition or at a Proceeding, and providing advice to the Company in preparing defenses to any pending or potential future Proceeding. In return, Company agrees to reimburse Employee for direct and reasonable out of pocket expenses (excluding any attorney’s fees) incurred by Employee at Company’s request for assistance related to any pending or potential Proceeding. Employee and the Company agree this Section 6 is a material term of this Agreement and the Company would not enter into this Agreement without it.

 

7.                                      Waiver of Claims. In exchange for the above-described consideration from the Company and other valuable consideration, the receipt and sufficiency of which is hereby again acknowledged, Employee, for Employee’s self and Employee’s administrators, attorneys, beneficiaries, and assigns, does hereby waive, release and discharge all claims, demands, rights, remedies and causes of action Employee may have against the Company and any related entities, as well as their respective affiliates, owners, stockholders, partners, predecessors, successors, assigns, directors, officers, members, employees, representatives, and attorneys (collectively, the “Released Parties”), relating in any way to his employment or termination of employment with the Company. By this release, Employee expressly waives and opts out of all claims and causes of action, whether asserted by Employee or others on an individual or class action basis, against the Released Parties, whether based in contract (express or implied), any covenant of good faith and fair dealing (express or implied), tort (whether intentional, negligent or otherwise, including claims arising out of the negligence or gross negligence of any person released in this Release Agreement), and any federal, state or other governmental statute regulation or ordinance, or other basis including, but not limited to, all claims under the Texas Commission on Human Rights Act, the Fair Labor Standards Act, the Family and Medical Leave Act (FMLA), Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), the Age Discrimination and Employment Act (ADEA) and/or any other federal or state statute that may give Employee an alleged cause of action against any of the Released Parties for any form of wrongful discharge, employment discrimination, or any other action related to Employee’s employment or termination of employment with the Company.

 

Employee understands that by signing this Agreement he is not releasing the right to enforce the terms of this Agreement or the Option Agreement, nor is he waiving any claims or rights that cannot be waived by law, including the right to file an administrative charge of discrimination or unfair labor practice charge. Employee further understands that nothing in this Agreement, including the confidentiality provisions and the non-disparagement provisions prevents Employee from filing a charge with the Equal Employment Opportunity Commission  or the Securities and Exchange Commission or from participating in investigations by either entity. However, Employee understands that this Agreement does prohibit Employee from obtaining any personal or monetary relief for himself in any such action or lawsuit arising from such charges or investigations, including, but not limited to, back pay, front pay or reinstatement. Employee further agrees that if any person, organization or other entity should bring a claim against the Released Parties involving any matter covered by this Agreement, Employee will not accept any personal relief in such action, including, but not limited to, damages, attorneys’ fees, costs and all other legal or equitable relief.

 

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Notwithstanding the foregoing, Employee understands that Employee will not give up his right to any benefits to which he is entitled under any retirement plan of the Company or its subsidiaries or affiliates that is intended to be qualified under Section 401(a) of the Internal Revenue Code of 1986, as amended, or his rights, if any, under Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended, or his right to any monetary award or recovery offered by the SEC pursuant to Section 21F of the Securities Exchange Act of 1934 or under the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Sarbanes-Oxley Act of 2002.

 

8.                                      Nature of Payments. Employee agrees that the Severance Consideration payments by the Company do not constitute back wages, but rather constitute a goodwill settlement and release package from the Company and a compromise of any claims for damages and/or other amounts due because of any and all alleged claims or demands arising from employment or termination of employment with the Company.

 

9.                                      Contractual Nature of Settlement. It is expressly understood and agreed by the Parties that the terms of this Agreement are contractual and that the releases and mutual covenants contained herein and the consideration transferred is to compromise all doubtful and disputed claims and to avoid any potential for litigation.

 

10.                               No Admission of Liability. No payments made, releases, or other consideration given in this Agreement shall be construed as an admission of liability by any Party.

 

11.                               Affirmation of Confidentiality, Non-Competition and Non-Solicitation Obligations. Employee hereby reaffirms Employee’s confidentiality, non-competition, non-solicitation and other obligations set forth in Section 7 of the Employment Agreement, as well as all obligations and agreements set forth in the Restrictive Covenants Agreement dated on or about November 19, 2015 (the “Restrictive Covenants Agreement”) between the Company and Employee.

 

12.                               Entire Agreement in this Writing. This Agreement constitutes the entire agreement between the Parties and supersedes any previous agreement or understanding made by the Parties with regard to the subject matter of this Agreement, including but not limited to the Employment Agreement (with the exception of Section 7 of the Employment Agreement, which is incorporated herein by reference and which survives the termination of the Employment Agreement).  It is expressly understood by both Parties that this Agreement does not affect the Director and Officer Indemnification Agreement dated as of March 29, 2016 (the “Indemnification Agreement”), the Restrictive Covenants Agreement or the Option Agreement except as specifically modified herein, each of which shall remain in full force and effect in accordance with their terms, except as specifically modified herein.  Nothing in this Agreement waives Employee’s rights, if any, to indemnification under the Indemnification Agreement or pursuant to any applicable insurance policy covering directors and officers.

 

13.                               Binding Effect. The provisions of this Agreement shall be binding upon and inure to the benefit of each Party’s respective beneficiaries, administrators, attorneys, legal representatives, successors and assigns.

 

14.                               Governing Law. This Release Agreement shall be governed by and construed in accordance with the laws of the State of Texas without giving effect to its conflict of laws and the obligations of the Parties hereto shall be performable in Travis County, Texas.

 

15.                               Advice of Counsel and Time to Consider Agreement. Employee acknowledges that he has freely and voluntarily agreed to the terms in this Agreement and have not been coerced or subjected to any duress by the Company to do so. By Employee’s signature below, Employee acknowledges

 

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that he has relied upon his own judgment or that of his attorney regarding the consideration for Employee’s promises and agreements and the language contained in this Agreement. Employee has been given twenty-one (21) days to consider this Agreement and he has been advised to consult with an attorney. Employee understands that any change to the initial terms of this Agreement do not restart the running of this twenty-one (21) day review period.

 

16.                               Revocation Period. Employee understands that this Agreement will not become enforceable until seven days after Employee signs it, and that during this seven-day period, Employee can revoke it if he wishes, by delivering a signed revocation letter within the seven-day period to Bryan Barksdale, General Counsel of the Company.

 

17.                               Confidentiality. Employee promises to keep the existence and terms of this Agreement confidential, unless required by law to disclose this information, or except as needed to be disclosed to anyone preparing his tax returns, or to his attorney for the purpose of obtaining legal advice.

 

[Signatures on the following page.]

 

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IN WITNESS WHEREOF, the Parties agree that they have fully reviewed this Agreement, fully understand its terms, and are entering into it knowingly and voluntarily.

 

 

	
 
    	
YETI COOLERS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Matthew J. Reintjes
    
	
 
    	
 
    	
Matthew J. Reintjes,
    
	
 
    	
 
    	
President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
Date: 
    	
March 2, 2018
    

 

 

ACCEPTED AND AGREED (Must be signed by no later than March 21, 2018)

 

 

	
/s/ Richard Shields
    	
 
    
	
Richard Shields
    	
 
    
	
 
    	
 
    
	
Date: 
    	
March 2, 2018
    	
 
    
			

 

SIGNATURE PAGE TO CONFIDENTIAL TRANSITION AND RELEASE AGREEMENTExhibit 10.7

 

 

YETI COOLERS, LLC

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT (the “Agreement”) is made and entered into effective as of June 1, 2018 (the “Commencement Date”) by and between YETI Coolers, LLC, a Delaware limited liability company (“YETI”), and Richard J. Shields (the “Consultant”).  YETI desires to retain Consultant as an independent contractor as of the Commencement Date to perform consulting services for YETI on the terms and conditions set forth herein (the “Consultancy”).  In consideration of the mutual promises contained herein, the parties agree as follows:

 

1.              SERVICES AND COMPENSATION

 

(a)         Consultant agrees to perform for YETI the services (“Services”) described in Exhibit A attached hereto.

 

(b)         YETI agrees to pay Consultant the compensation set forth in Exhibit A for the future performance of the Services and for the agreements made by Consultant herein.

 

2.              CONFIDENTIALITY

 

(a)         Definition. “Confidential Information” means any YETI proprietary information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, customers/dealers, customer/dealer lists, markets, developments, inventions, processes, formulas, technology, designs, drawings, engineering, marketing, finances or other business information disclosed by YETI both before and after the Commencement Date, either directly or indirectly, in writing, orally or by drawings or inspection of parts or equipment.  For the avoidance of doubt, all Work Product is the Confidential Information of YETI.

 

(b)         Non-Use and Non-Disclosure.  Consultant will not, during or subsequent to the term of this Agreement, use YETI’s Confidential Information for any purpose whatsoever other than the performance of the Services on behalf of YETI or disclose YETI’s Confidential Information to any third party.  It is understood that said Confidential Information shall remain the sole property of YETI.  Consultant further agrees to take all reasonable precautions to prevent any unauthorized disclosure of such Confidential Information including, but not limited to, having each employee of Consultant, if any, with access to any Confidential Information, execute a nondisclosure agreement containing provisions in YETI’s favor identical to Section 2 of this Agreement.  Confidential Information does not include information which: (i) is known to Consultant at the time of disclosure to Consultant by YETI as evidenced by written records of Consultant; (ii) has become publicly known and made generally available through no wrongful act of Consultant; or (iii) has been rightfully received by Consultant from a third party who is authorized to make such disclosure.  Without YETI’s prior written approval, Consultant will not directly or indirectly disclose to anyone the existence of this Agreement or the fact that Consultant has this arrangement with YETI.

 

(c)          Third Party Confidential Information.  Consultant recognizes that YETI has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on YETI’s part to maintain the confidentiality of such information and to use it only for certain limited purposes.  Consultant agrees that Consultant owes YETI and such third parties, during the term of this

 

CONFIDENTIAL

 

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Agreement and thereafter, a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out the Services for YETI consistent with YETI’s agreement with such third party.

 

(d)         Other Consultant Confidential Information.  Consultant agrees that Consultant will not, during the term of this Agreement, improperly use or disclose any proprietary information or trade secrets of any third party with which Consultant has an agreement or duty to keep in confidence information acquired by Consultant, if any, and that Consultant will not bring onto the premises of YETI any unpublished document or proprietary information belonging to such party unless consented to in writing by such party.  Consultant will indemnify YETI and hold it harmless from and against all claims, liabilities, damages and expenses, including reasonable attorneys fees and costs of suit, arising out of or in connection with any alleged or actual violation or misappropriation of a third party’s rights resulting in whole or in part from YETI’s use of the work product of Consultant under this Agreement.

 

(e)          Return of Materials.  Upon the termination of this Agreement, or upon YETI’s earlier request, Consultant will deliver to YETI all of YETI’s property or Confidential Information that Consultant may have in Consultant’s possession or control.

 

3.              OWNERSHIP

 

(a)         Assignment.  Consultant agrees that all copyrightable material, notes, records, works of authorship, drawings, designs, inventions (whether or not patentable), improvements, developments, discoveries, know-how, ideas, information and trade secrets (collectively, “Work Product”) conceived, discovered, developed or reduced to practice by Consultant, solely or in collaboration with others, from the Commencement Date through the term of this Agreement which relate in any manner to the business of YETI that Consultant may be directed to undertake in performing the Services hereunder are the sole property of YETI.  Consultant further agrees to assign (or cause to be assigned) and does hereby assign fully to YETI all Work Product and all copyrights, patents, patent rights, trade secret rights and all other intellectual property rights of any sort throughout the world relating thereto.  Consultant hereby waives any and all moral rights.

 

(b)         Further Assurances.  Consultant agrees to assist YETI, or its designee, at YETI’s expense, in every proper way to secure YETI’s rights in the Work Product and any copyrights, patents, mask work rights or other intellectual property rights relating thereto in any and all countries, including the disclosure to YETI of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments which YETI shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to YETI, its successors, assigns and nominees the sole and exclusive right, title and interest in and to such Work Product, and any copyrights, patents, mask work rights or other intellectual property rights relating thereto.  Consultant further agrees that Consultant’s obligation to execute or cause to be executed, when it is in Consultant’s power to do so, any such instrument or papers shall continue after the termination of this Agreement.

 

(c)                                  Pre-Existing Materials.  Consultant agrees that if in the course of performing the Services, Consultant incorporates into any Work Product developed hereunder any invention, improvement, development, concept, discovery or other proprietary information owned by Consultant or in which Consultant has an interest, (i) Consultant shall inform YETI, in writing before incorporating such invention, improvement, development, concept, discovery or other proprietary information into any Work Product, and (ii) YETI is hereby granted and shall have a nonexclusive, royalty-free, perpetual, irrevocable, worldwide license to use, perform, display, make, reproduce, make derivative works, import, sell, offer for sale, license, distribute, and otherwise dispose of such invention, improvement, development, concept, discovery or other proprietary information as part of or in connection with such Work Product, with the

 

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right to license such rights to others.  Consultant shall not incorporate any invention, improvement, development, concept, discovery or other proprietary information owned by any third party into any Work Product without YETI’s prior written permission.

 

(d)                                 Attorney in Fact.  Consultant agrees that if YETI is unable because of Consultant’s unavailability, dissolution, mental or physical incapacity, or for any other reason, to secure Consultant’s signature to apply for or to pursue any application for any United States or foreign patents or mask work or copyright registrations covering the Work Product assigned to YETI above, then Consultant hereby irrevocably designates and appoints YETI and its duly authorized officers and agents as Consultant’s agent and attorney in fact, to act for and in Consultant’s behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of patents, copyright and mask work registrations thereon with the same legal force and effect as if executed by Consultant.

 

4.              WARRANTIES

 

(a)         Consultant Warranty.  Consultant shall perform the obligations described herein in a good and workmanlike manner with due diligence and in full compliance with the terms and conditions of this Agreement and all mutually agreed to specifications, statements of work, and acceptance criteria.  Consultant, at its expense, shall use reasonable efforts to correct any Services or Work Product performed by or delivered by Consultant that do not conform to the foregoing warranty.

 

(b)         Further Warranties. Consultant further warrants that: (i) the Work Product is or will be original to Consultant; (ii) Consultant has not previously granted and will not grant any rights in the Work Product to any third party that are inconsistent with the rights granted to YETI herein; (iii) each of Consultant’s employees, consultants, contractors, partners, or agents who has been or will be involved in the performance of the Services has or will have signed an agreement with Consultant conveying all proprietary and intellectual property rights in or relating to the Work Product to Consultant and agreeing to maintain in confidence all trade secrets and non-Consultant proprietary information embodied in the Work Product or acquired while performing the Services or having access to Work Product; (iv) all Work Product, and the intended uses thereof, shall be free of any third party claims with respect to intellectual property or other proprietary rights and shall be free of any third party liens, encumbrances, security interests, or any similar restrictions; (v) unless provided by YETI, Consultant will provide all necessary personnel, facilities, and materials to facilitate efficient and effective completion of the Services; (vi) Consultant will exert Consultant’s best efforts to use a repeatable and proven process to design, develop, test, deliver, and document the Work Product, or any part thereof; and (vii) Consultant has full power and authority to enter into this Agreement, to carry out its obligations under this Agreement and to grant the rights granted to YETI hereunder.

 

(c)          Indemnity.  Consultant shall indemnify and hold YETI harmless from and against any claims, damages, or liabilities resulting from Consultant’s breach of the foregoing warranties.

 

5.              CONFLICTING OBLIGATIONS

 

Consultant certifies that Consultant has no outstanding agreement or obligation that is in conflict with any of the provisions of this Agreement, or that would preclude Consultant from complying 

 

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with the provisions hereof, and further certifies that Consultant will not enter into any such conflicting agreement during the term of this Agreement.

 

6.              REPORTS

 

Consultant agrees that he will from time to time during the term of this Agreement or any extension thereof keep YETI advised as to Consultant’s progress in performing the Services hereunder and that Consultant will, as requested by YETI, prepare written reports with respect thereto.  It is understood that the time required in the preparation of such written reports shall be considered time devoted to the performance of Consultant’s Services.

 

7.              TERM AND TERMINATION

 

(a)         Term.  This Agreement will commence on the Commencement Date and will continue until the earlier of (i) the termination date set forth on Exhibit A or (ii) termination as provided below.

 

(b)         Termination. YETI may terminate this Agreement upon five days written notice to Consultant.  In addition, YETI may terminate this Agreement immediately and without prior notice if Consultant (i) refuses to perform the Services or (ii) is in breach of any material provision of this Agreement.

 

(c)          Survival.  Upon termination of this Agreement pursuant to Section 7(a) or (b), all rights and duties of the parties toward each other shall cease except:

 

(i)             that YETI shall be obliged to pay, within thirty (30) days of the effective date of termination, all amounts owing to Consultant for Services completed and accepted by YETI prior to the termination date and related expenses, if any, in accordance with the provisions of Section 1; and

 

(ii)          Sections 2 (Confidentiality), 3 (Ownership), 4 (Warranties), 5 (Conflicting Obligations), 9 (Independent Contractor), and 11-15 (Governing Law; Entire Agreement; Attorney’s Fees; Severability; Notices) shall survive termination of this Agreement.

 

8.              ASSIGNMENT

 

Neither this Agreement nor any right hereunder or interest herein may be assigned or transferred, nor may any obligation be subcontracted, by Consultant without the express written consent of YETI.  YETI may assign this Agreement in its discretion.  Any attempted assignment in violation of this Section 8 shall be void.

 

9.              INDEPENDENT CONTRACTOR

 

(a)         Nature of Relationship.  It is the express intention of the parties that Consultant is an independent contractor during the term of this Agreement.  Nothing in this Agreement shall in any way be construed to constitute Consultant as an agent, employee or representative of YETI, but Consultant shall perform the Services hereunder as an independent contractor.  Consultant agrees to furnish (or reimburse YETI for) all tools and materials necessary to accomplish this contract, and shall incur all expenses associated with performance, except as expressly provided on Exhibit A of this Agreement.  Consultant acknowledges and agrees that Consultant is obligated to report as income all compensation received by Consultant pursuant to this Agreement, and Consultant agrees to and acknowledges the obligation to pay all self-employment and other taxes thereon.

 

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(b)         Independent Contractor Indemnification.  Consultant agrees to indemnify and hold harmless YETI and its members, managers, directors, officers, employees and affiliates from and against all taxes, losses, damages, liabilities, costs and expenses, including attorneys’ fees and other legal expenses, arising directly or indirectly from or in connection with: (i) any negligent, reckless or intentionally wrongful act of Consultant or Consultant’s assistants, employees or agents; (ii) a determination by a court or agency that the Consultant is not an independent contractor; (iii) any breach by the Consultant or Consultant’s assistants, employees or agents of any of the covenants contained in this Agreement; (iv) any failure of Consultant to perform the Services in accordance with all applicable laws, rules and regulations; or (v) any violation or claimed violation of a third party’s rights resulting in whole or in part from YETI’s use of the work product of Consultant under this Agreement.

 

10.       BENEFITS

 

Consultant acknowledges and agrees and it is the intent of the parties hereto that neither Consultant nor any employees or contractors of Consultant receive any YETI-sponsored benefits from YETI by virtue of this Agreement.  Such benefits include, but are not limited to, paid vacation, sick leave, medical insurance, and 401(k) participation.  If Consultant is reclassified by a state or federal agency or court as an employee, Consultant will become a reclassified employee and will receive no benefits except those mandated by state or federal law, even if by the terms of YETI’s benefit plans in effect at the time of such reclassification Consultant would otherwise be eligible for such benefits.

 

11.       GOVERNING LAW

 

This Agreement shall be governed by the internal substantive laws, but not the choice of law rules, of the State of Texas.

 

12.       ENTIRE AGREEMENT

 

This Agreement is the entire agreement of the parties and supersedes any prior agreements between them, whether written or oral, with respect to the provision of consulting services.  For purposes of clarity, this Agreement does not supersede the Confidential Transition and Release Agreement nor any agreement executed by Consultant during his employment with YETI.  No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by Consultant and a duly authorized representative of YETI.

 

13.       ATTORNEY’S FEES

 

In any court action at law or equity which is brought by one of the parties to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorney’s fees, in addition to any other relief to which that party may be entitled.

 

14.       SEVERABILITY

 

The invalidity or unenforceability of any provision of this Agreement, or any terms thereof, shall not affect the validity of this Agreement as a whole, which shall at all times remain in full force and effect.

 

15.       NOTICES

 

Any notice shall be addressed to the party being notified at the address set forth in this Agreement or such other address as either party may notify the other of and shall be deemed given upon 

 

5

 

delivery if personally delivered or transmitted via facsimile or reliable overnight carrier (with tracking capability), or forty-eight (48) hours after being deposited in the United States mail, postage prepaid, registered or certified mail, return receipt requested.

 

[Remainder of page is intentionally blank; signature page follows]

 

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

 

 

	
 
    	
 
    	
Consultant:
    
	
 
    	
 
    	
 
    
	
YETI COOLERS, LLC
    	
 
    	
RICHARD J. SHIELDS
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Bryan C. Barksdale
    	
 
    	
Signature:
    	
/s/ Richard J. Shields
    
	
Print Name:
    	
Bryan C. Barksdale
    	
 
    	
 
    	
Richard J. Shields
    
	
Title:
    	
General Counsel
    	
 
    	
 
    	
 
    
	
Date:
    	
June 1, 2018
    	
 
    	
Date:
    	
June 1, 2018
    
	
Address:
    	
7601 Southwest Pkwy
    	
 
    	
Address:
    	
 
    
	
 
    	
Austin, TX 78735
    	
 
    	
 
    	
 
    

 

7

 

EXHIBIT A

 

SERVICES AND COMPENSATION

 

1.                                      Contact.  Consultant’s principal YETI contact shall be YETI’s Chief Executve Officer or such other person as YETI may designate from time to time.

 

2.                                      Access to YETI Assets.  During the term of this Agreement, YETI shall permit Consultant to use the YETI-owned laptop computer previously assigned to Consultant (including his archived email) in the event that any information stored therein is required to perform the Services.  Consultant shall return the computer to YETI upon conclusion of the term.

 

3.                                      Services. Consultant will provide financial and operational advice and services as may be requested from time to time (the “Services”).

 

4.                                      Compensation; Required Minimum Time.  Consultant agrees to perform up to 10 hours of Services per month as requested YETI, and YETI shall pay Consultant a retainer of $2000 per month for such Services.  In the event that YETI shall request and the Consultant shall perform Services in excess of 10 hours in a given month, YETI shall pay Consultant an hourly rate of $400 for such additional Services.  Consultant shall invoice YETI no less frequently than monthly and YETI agrees to pay such invoices shall be due any payable upon receipt.

 

5.                                      Term.  Consultant will render the Services from the Commencement Date through December 31, 2018.

 

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