Document:

Exhibit 10z to Winnebago Industries, Inc. Form 10-K for fiscal year ended 8-29-2009

EXHIBIT 10z.

THE WINNEBAGO INDUSTRIES, INC

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Effective as of January 1, 2009.

WINNEBAGO INDUSTRIES, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

ARTICLE I - PURPOSE;
EFFECTIVE DATE

	
  

 	
  

 
	
 1.1.

 	
 Purpose. The purpose of this Supplemental Executive
 Retirement Plan (hereinafter, the “Plan”) is to provide supplemental benefits to a select group of highly
 compensated employees of WINNEBAGO INDUSTRIES, INC. (and
 its selected subsidiaries and/or affiliates) generally payable upon the
 participant’s termination of service. This Plan is intended to be an
 amendment and restatement of the
 Winnebago Executive Split Dollar life Insurance Program, previously maintained by the Company, including all
 arrangements between the Company and the Participants such as shared interest in specific life insurance
 policies. It is intended that the Plan will aid in retaining and
 attracting individuals of exceptional ability by providing them with these benefits.

 
	
  

 	
  

 
	
 1.2.

 	
 Effective Date. This amended and restated Plan shall be
 initially effective as of January 1, 2009. It is the intent that all of the benefits
 provided under this Plan will be subject to the terms of Section 409A of the
 Code.

 
	
  

 	
  

 
	
 1.3.

 	
 Plan Type. For purposes of
 §409A, benefits payable to the Participants, and their beneficiaries, under this Plan,
 shall be considered to be benefits payable from a non-account balance plan as
 defined
 in Treas. Reg. §1.409A -l(c)(2)(i)(C), or as otherwise provided by the Code.

 

ARTICLE II - DEFINITIONS

                                        For
the purpose of this Plan, the following terms shall have the meanings indicated, unless the
context clearly indicates otherwise:

	
  

 	
  

 
	
 2.1.

 	
 Beneficiary. “Beneficiary” means
 the person, persons or entity as designated by the Participant, entitled
 under Article VI to receive any Plan benefits payable after the Participant’s
 death.

 
	
  

 	
  

 
	
 2.2.

 	
 Board. “Board” means the
 Board of Directors of the Company.

 
	
  

 	
  

 
	
 2.3.

 	
 Code. “Code” means the
 Internal Revenue Code of 1986, as may be amended from time to time. Any
 reference in this Plan to “applicable guidance”, “further guidance” or other
 similar term shall include any proposed, temporary or final regulations, or
 any other guidance, promulgated with respect to or in connection with Section 409A by
 the U.S. Department of Treasury or the Internal Revenue Service.

 
	
  

 	
  

 
	
 2.4.

 	
 Committee. “Committee” means the
 Committee appointed by the Board to administer the Plan pursuant to Article
 VII.

 

	
  

 	
  

 
	
 2.5.

 	
 Company. “Company” means
WINNEBAGO INDUSTRIES, INC. an
 Iowa-based corporation, and any
 directly or indirectly affiliated subsidiary corporations, any other
 affiliate designated by the Board, or any
 successor to the business thereof.

 
	
  

 	
  

 
	
 2.6.

 	
 Disability. “Disability means a
 physical or mental condition whereby the Participant: (i) is unable to engage in any
 substantial gainful activity by reason of any medically determinable physical or mental
 impairment which can be expected to result in death or can be expected to last for a continuous
 period of not less than 12 months, or (ii) is, by reason of any medically
 determinable physical or mental impairment which can be expected to result in
 death or can be expected to last for a continuous period of not less than 12
 months, receiving income replacement benefits for a period of not less than 3
 months under an accident and health plan covering employees of the
 participant’s employer.

 
	
  

 	
  

 
	
 2.7.

 	
 Distribution Election. “Distribution
 Election” means the form prescribed by the Committee and completed by the
 Participant, indicating the chosen form of payment for benefits payable under
 this Plan, as elected by the
 Participant.

 
	
  

 	
  

 
	
 2.8.

 	
 Early Retirement Date. “Early Retirement
 Date” means the termination of a Participant’s employment with the Company, for reasons other
 than death or Disability, at any time prior to the Participant’s Normal
 Retirement Date.

 
	
  

 	
  

 
	
 2.9.

 	
 Normal Retirement Benefit. “Normal Retirement
 Benefit” means the amount payable under the terms of this Plan to a Participant based upon
 termination, for reason other than death, at the Normal Retirement Date.
 Such benefit amount shall be stated in the Participation Agreement as either (i) an annual
 dollar amount payable in the form of a fifteen (15) year installment payment,
 or (ii) a lump sum option. The Participant shall choose the form of the
 Normal Retirement Benefit as provided in section 4.5, below. The Normal Retirement
 Benefit stated in the Participation Agreement shall be increased by 5% for
 each full year of continuous service performed by the Participant for the
 Company after the Normal Retirement Date.

 
	
  

 	
  

 
	
 2.10.

 	
 Normal Retirement Date. “Normal Retirement
 Date” means the termination of a Participant’s employment with the Company, for reasons
 other than death or Disability, on or after the attainment of age sixty-five (65).

 
	
  

 	
  

 
	
 2.11.

 	
 Participant. “Participant” means
 any individual who is eligible, pursuant to Section 3.1, below, to participate
 in this Plan. Such individual shall remain a Participant in this Plan during
 employment with the Company, and until such time as all benefits payable
 under this Plan have been paid in accordance with the provisions hereof.

 
	
  

 	
  

 
	
 2.12.

 	
 Participation Agreement. “Participation
 Agreement” means document entered into between the Participant and the
 Company which contains, among other things, information specific to that Participant, including
 the Normal Retirement Benefit, and an acknowledgement of the performance of any
 conditions required for participation in this Plan.

 

	
  

 	
  

 
	
 2.13.

 	
 Plan. “Plan” means this
 Supplemental Executive Retirement Plan as amended from time to time.

 
	
  

 	
  

 
	
 2.14.

 	
 Specified Employees. “Specified Employees”
 means a Participant who is determined by the Committee to be a “specified
 employee” under the provisions of Treas. Reg. §1.409A-l(i) and other
 applicable guidance, provided that the Company (or a member of the same group
 of controlled
 entities as the Company) is publicly traded on an established stock exchange.

 
	
  

 	
  

 
	
 2.15.

 	
 Supplemental Retirement Benefit. “Supplemental
 Retirement Benefit” means the Normal Retirement Benefit determined under Article IV
 of this Plan, and adjusted as appropriate for early termination, early
 commencement, and alternative forms of payment elected by the Participant.

 
	
  

 	
  

 
	
 2.16.

 	
 Termination. “Termination”,
 “terminates employment” or any other similar such phrase means a Participant’s
 “separation from service” with the Company, for any reason, within the meaning of Section 409A
 of the Code, and Treas. Reg. §1.409A-l(h) and other applicable guidance.

 

ARTICLE III - ELIGIBILITY AND
PARTICIPATION

	
  

 	
  

 	
  

 
	
 3.1.

 	
 Eligibility and Participation. The Compensation
 Committee of the Board shall have the sole right to set eligibility requirements and offer participation into
 the Plan according to the following guidelines:

 
	
  

 	
  

 	
  

 
	
  

 	
 a)

 	
 Eligibility. Eligibility to
 participate in the Plan shall be limited to those select key employees of
 Company who are designated by the Committee from time to time, and who were participants in
 the Winnebago Executive Split Dollar life Insurance Program as of January 1, 2008.

 
	
  

 	
 b)

 	
 Participation. An individual’s
 participation in the Plan shall be effective upon the individual first
 becoming eligible to participate, completion of a Participation Agreement,
 and a Distribution Election form, and acceptance of each by the Committee.
 Subject to Section 3.2, participation in the Plan shall continue until such
 time as the Participant terminates employment with Company and as long
 thereafter as the Participant is eligible to receive benefits under this Plan.

 
	
  

 	
  

 	
  

 
	
 3.2.

 	
 Change in Status. If the Committee
 determines that a Participant’s employment performance is no longer at a level
 that warrants reward through participation in this Plan, but does not
 terminate the Participant’s employment with Company, participation herein and
 eligibility to receive benefits hereunder shall be limited to the
 Supplemental Retirement Benefit determined as if the Participant were to have
 terminated service as of the date designated by the Board (“Participation
 Termination Date”).

 

ARTICLE IV - SUPPLEMENTAL
BENEFITS

	
  

 	
  

 	
  

 
	
 4.1.

 	
 Normal Retirement Benefit. If a Participant
 terminates services at or after the Normal Retirement Date, Company shall pay to Participant a Supplemental
 Retirement Benefit equal to the amount of
 the Normal Retirement Benefit as set forth in the Participant’s Participation
 Agreement, and elected by the
 Participant as provided in section 4.5, below.

 
	
  

 	
  

 	
  

 
	
 4.2.

 	
 Early Retirement Benefit. If a Participant
 terminates services before the Normal Retirement Date, Company shall pay to
 the Participant an annual Supplemental Retirement Benefit equal to the amount of the Normal Retirement
 Benefit, as elected by the Participant as provided in section 4.5, below, and reduced as provided below:

 
	
  

 	
  

 	
  

 
	
  

 	
 a)

 	
 Early
 Termination Factor - 2-1/2% for each year that the Participant’s
 termination (or if earlier,
 the Participation Termination Date described above in section 3.2, above)
 occurs before age 65; plus,

 
	
  

 	
  

 	
  

 
	
  

 	
 b)

 	
 Early
 Payout Factor - 2-1/2% for each year that the commencement of payment
 occurs before age 65, in the
 event that the Participant chooses a time of payment other than defined under
 the Normal Retirement Benefit.

 
	
  

 	
  

 	
  

 
	
 4.3.

 	
 Disability Benefit. If a Participant
 suffers a Disability, the Participant shall continue to be considered a
 Participant in this Plan during the period of Disability until the earlier of
 the Participant’s Normal Retirement Date or date of termination, at which
 time the Participant shall be paid a Supplemental Benefit as provided in
 paragraph 4.1 or 4.2 as applicable.

 
	
  

 	
  

 	
  

 
	
 4.4.

 	
 Payment to Specified Employees. Notwithstanding
 anything else to the contrary, payments of benefits under this Article caused
 by the termination of employment (other than by reason of death) of a Participant who is determined
 to meet the definition of Specified Employee at the time of termination shall be payable as otherwise
 provided, except that the initial payment shall be made no earlier than the
 six (6) months following the termination of employment with the Company.

 
	
  

 	
  

 	
  

 
	
 4.5.

 	
 Alternate Time and/or Form of Payment. A Participant, who is
 not then receiving benefits under this Plan or under the Winnebago Executive
 Split Dollar life Insurance Program, shall choose a time and/or form of
 benefit payment with respect to the Normal Retirement Benefit, provided that
 such choice is of one of the forms listed below, is applicable to the entire
 benefit payable under this Article, and such choice is filed with the
 Committee on or before December 31, 2008. This provision is intended to
 comply with the relief of the provisions of Section 409A(a)(3) and (4) of the
 Code and any regulations or further guidance issued thereon and which is
 permitted by
 Treasury Notice 2005-2 and subsequent guidance, so that any election filed by
 December 31, 2008 does not apply to any amounts which were otherwise payable in
 2008, nor does it accelerated any payment into 2008. The times and forms of benefit
 which may be chosen by the Participant are:

 
	
  

 	
  

 	
  

 
	
  

 	
 a)

 	
 Lump
 sum equivalent payable at Termination (but in no event prior to Participant’s
 age 55);

 

	
 	
  

 	
  

 
	
  

 	
 b)

 	
 Lump
 sum equivalent payable at the later of Termination or Normal Retirement Age;

 
	
  

 	
  

 	
  

 
	
  

 	
 c)

 	
 15
 annual installments commencing at Termination (but in no event prior to
 Participant’s age 55); and

 
	
  

 	
  

 	
  

 
	
  

 	
 d)

 	
 15
 annual installments commencing at the later of Termination or Normal
 Retirement Age.

 
	
  

 	
  

 	
  

 
	
  

 	
 If no
 election is made by the Participant prior to December 31, 2008, the
 Participant will be deemed to have elected 15annual installments commencing at the later of Termination or
 Normal Retirement Age. Subject to section 4.4, all payments under section 4.1
 and 4.2 shall commence on or about the April 1 immediately following the date
 chosen above, and subsequent payments, if appropriate, shall be made on or about the
 anniversary of the initial payment.

 

	
  

 	
  

 
	
 4.6.

 	
 Death Benefits. In the event of death
 of a Participant, a benefit shall be paid in lieu of any other further
 benefit which may be due under this Plan following the date of death in the
 following manner, based on the time of death, or as may otherwise be provided
 for in the Participation Agreement:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 If
death occurs.... 

 	
  

 	
  

 	
 The
death benefit shall be equal to...  

 
	
  

 	
 Prior
 to commencement of benefit payments

 	
  

 	
  

 	
 20
 times the annual Normal Retirement Benefit 

 
	
  

 	
 After
 commencement of payments, but prior to the 5th installment payment

 	
  

 	
  

 	
 The number of remaining
 installment payments plus 5 times the
 annual Normal Retirement Benefit
 

 
	
  

 	
 After
 the 5th but prior to the 11th annual installment

 	
  

 	
  

 	
 The number of remaining
 installment payments plus 3 times the
 annual Normal Retirement Benefit
 

 
	
  

 	
 After
 the 11th but prior to the 15th annual installment

 	
  

 	
  

 	
 The number of remaining
 installment payments plus 1 times the
 annual Normal Retirement Benefit
 

 
	
  

 	
 After completion of
 Supplemental Retirement Benefit (including payment of a lump sum)

 	
  

 	
  

 	
 $ 0 

 

	
  

 	
  

 
	
  

 	
 The
 Death Benefit under this section shall be payable in a lump sum to the
 Participant’s Beneficiary
 as soon as practical, but in no event later than sixty (60) days after all
 information necessary to calculate the
 benefit amount has been received by Company.

 
	
  

 	
  

 
	
 4.7.

 	
 Withholding; Payroll Taxes. Company shall withhold
 from payments hereunder any taxes required to be withheld from such payments
 under local, state or federal law. A Beneficiary, however, may elect not to have withholding
 of federal income tax pursuant to Section 3405 (a) (2) of the Code, or any successor provision thereto.

 
	
  

 	
  

 
	
 4.8.

 	
 Payment to Guardian. If a Plan benefit is
 payable to a minor or a person declared incompetent or to a person
 incapable of handling the disposition of property, the Committee may direct
 payment to the guardian, legal representative or person having the care and
 custody of such minor, or incompetent person. The Committee may require proof
 of incompetency, minority, incapacity

 

	
  

 	
  

 
	
  

 	
 or
 guardianship as it may deem appropriate prior to distribution. Such
 distribution shall completely
 discharge the Committee and Company from all liability with respect to such
 benefit.

 

ARTICLE V - BENEFICIARY
DESIGNATION

	
  

 	
  

 	
  

 
	
 5.1.

 	
 Beneficiary Designation. Each Participant shall
 have the right, at any time, to designate one (1) or more persons or
 entity as Beneficiary (both primary as well as secondary) to whom benefits under this Plan shall be paid in the event
 of Participant’s death prior to complete distribution of the Participant’s benefits. Each Beneficiary
 designation shall be in a written form prescribed by the Committee and shall be effective only when filed
 with the Committee during the Participant’s lifetime.

 
	
  

 	
  

 	
  

 
	
 5.2.

 	
 Changing Beneficiary. Any Beneficiary
 designation may be changed by a Participant without the consent of the
 previously named Beneficiary by the filing of a new Beneficiary designation
 with the Committee.

 
	
  

 	
  

 	
  

 
	
 5.3.

 	
 No Beneficiary Designation. If any Participant
 fails to designate a Beneficiary in the manner provided above, if the
 designation is void, or if the Beneficiary designated by a deceased Participant dies before the Participant or
 before complete distribution of the Participant’s benefits, the Participant’s
 Beneficiary shall be the person in the first of the following classes in
 which there is a survivor:

 
	
  

 	
  

 	
  

 
	
  

 	
 a)

 	
 The
 Participant’s surviving spouse;

 
	
  

 	
  

 	
  

 
	
  

 	
 b)

 	
 The
 Participant’s children in equal shares, except that if any of the children
 predeceases the Participant
 but leaves surviving issue, then such issue shall take by right of
 representation the share the deceased
 child would have taken if living;

 
	
  

 	
  

 	
  

 
	
  

 	
 c)

 	
 The Participant’s estate.

 
	
  

 	
  

 	
  

 
	
 5.4.

 	
 Effect of Payment. Payment to the
 Beneficiary shall completely discharge the Company’s obligations under this
 Plan.

 

ARTICLE VI - ADMINISTRATION

	
  

 	
  

 
	
 6.1.

 	
 Committee; Duties. This Plan shall be
 administered by the Committee, which shall have the authority to make,
 amend, interpret and enforce all appropriate rules and regulations for the
 administration of the Plan and decide or resolve any and all questions,
 including interpretations of the Plan, as they may arise in such administration. A
 majority vote of the Committee members shall control any decision. Members of
 the Committee may be Participants under this Plan.

 
	
  

 	
  

 
	
 6.2.

 	
 Compliance with Section 409A of the Code. It is intended that
 the Plan comply with the provisions
 of Section 409A of the Code, so as to prevent the inclusion in gross income
 of any amounts deferred hereunder in a taxable year that is prior to the
 taxable year or years in which

 

	
  

 	
  

 
	
  

 	
 such
 amounts would otherwise actually be paid or made available to Participants or
 Beneficiaries. This Plan shall be construed, administered, and governed
 in a manner that effects such intent, and the Committee shall not take any action that
 would be inconsistent with such intent. Although the Committee shall use its best efforts to
 avoid the imposition of taxation, interest and penalties under Section 409A of the Code, the tax treatment of
 deferrals under this Plan is not warranted or guaranteed. Neither the
 Company, the Board, any director, officer, employee and advisor, nor the
 Committee (nor its designee) shall be held liable for any taxes, interest,
 penalties or other monetary amounts owed by any Participant, Beneficiary or other
 taxpayer as a result of the Plan. For purposes of the Plan, the phrase
 “permitted by Section 409A of the Code,” or words or phrases of similar import, shall mean that the event or
 circumstance shall only be permitted to the extent it would not cause an
 amount deferred or payable under the Plan to be includible in the gross
 income of a Participant or
 Beneficiary under Section 409A(a)(l) of the Code.

 
	
  

 	
  

 
	
 6.3.

 	
 Agents. The Committee may,
 from time to time, employ agents and delegate to them such administrative duties as it sees fit, and
 may from time to time consult with counsel who may be counsel to the Company.

 
	
  

 	
  

 
	
 6.4.

 	
 Binding Effect of Decisions. The decision or
 action of the Committee with respect to any question arising out of or in
 connection with the administration, interpretation and application of the
 Plan and the rules and regulations promulgated hereunder shall be final,
 conclusive and binding upon all persons having any interest in the Plan.

 
	
  

 	
  

 
	
 6.5.

 	
 Indemnity of Committee. The Company shall indemnify
 and hold harmless the members of the Committee against any and all claims,
 loss, damage, expense or liability arising from any action or failure to act
 with respect to this Plan on account of such member’s service on the
 Committee, except in the case of gross negligence or willful misconduct.

 

ARTICLE VII - CLAIMS PROCEDURE

	
  

 	
  

 	
  

 
	
 7.1.

 	
 Claim. Any person or entity
 claiming a benefit, requesting an interpretation or ruling under the Plan (hereinafter referred to as
 “Claimant”), or requesting information under the Plan shall present the
 request in writing to the Committee, which shall respond in writing as soon
 as practical, but in no event later than ninety (90) days after receiving the
 initial claim (or no later than forty-five (45) days after receiving the initial claim regarding a Disability under
 this Plan).

 
	
  

 	
  

 
	
 7.2.

 	
 Denial of Claim. If the claim or
 request is denied, the written notice of denial shall state:

 
	
  

 	
  

 
	
  

 	
 a)

 	
 The reasons for denial,
 with specific reference to the Plan provisions on which the denial is based;

 
	
  

 	
  

 
	
  

 	
 b)

 	
 A
 description of any additional material or information required and an
 explanation of why it is necessary, in which event the time frames listed in
 section 8.1 shall be one hundred and eighty (180) and seventy-five (75) days
 from the date of the initial claim respectively; and

 
	
  

 	
  

 
	
  

 	
 c)

 	
 An
 explanation of the Plan’s claim review procedure.

 

	
  

 	
  

 
	
 7.3.

 	
 Review of Claim. Any Claimant whose
 claim or request is denied or who has not received a response within sixty
 (60) days (or one hundred and eighty (180) days in the event of a claim regarding a Disability)
 may request a review by notice given in writing to the Committee. Such request must be made
 within sixty (60) days (or one hundred and eighty (180) days in the event of
 a claim regarding a Disability) after receipt by the Claimant of the written
 notice of denial, or in the event Claimant has not received a response sixty
 (60) days (or one hundred and eighty (180) days in the event of a claim
 regarding a Disability) after receipt by the Committee of Claimant’s claim or request. The
 claim or request shall be reviewed by the Committee which may, but shall not be required to,
 grant the Claimant a hearing. On review, the claimant may have
 representation, examine pertinent documents, and submit issues and comments
 in writing.

 
	
  

 	
  

 
	
 7.4.

 	
 Final Decision. The decision on review
 shall normally be made within sixty (60) days (or forty- five (45) days in the
 event of a claim regarding a Disability) after the Committee’s receipt of claimant’s claim or
 request. If an extension of time is required for a hearing or other special circumstances, the Claimant shall be
 notified and the time limit shall be one hundred twenty (120) days (or ninety (90) days in the event of a claim
 regarding a Disability). The decision shall be in writing and shall state the reasons and the
 relevant Plan provisions. All decisions on review shall be final and
 bind all parties concerned.

 

ARTICLE VIII - AMENDMENT AND
TERMINATION OF PLAN

	
  

 	
  

 	
  

 
	
 8.1.

 	
 Amendment. The Board may at any
 time amend the Plan by written instrument, notice of which is given to all
 Participants and to Beneficiary receiving installment payments, except that
 no amendment
 shall reduce the amount vested or accrued benefit as of the date the
 amendment is adopted.

 
	
  

 	
  

 
	
 8.2.

 	
 Company’s
 Right to Terminate.
 The Board may, in its sole discretion, terminate the entire Plan, or terminate a portion of the Plan that is
 identified as a non-account balance plan as defined in Treas. Reg. §1.409A
 -l(c)(2)(i)(C), and require distribution of all benefits due under the Plan
 or portion thereof, provided that:

 
	
  

 	
  

 
	
  

 	
 a)

 	
 The termination of the
 Plan does not occur proximate to a downturn in the financial health, as determined by the Committee, of the Company;

 
	
  

 	
  

 
	
  

 	
 b)

 	
 The
 Company also terminates all other plans or arrangements which are considered
 to be of a similar type as defined in Treas. Reg. § 1.409A -l(c)(2)(i), or as
 otherwise provided by the Code, as the portion of the Plan which has been
 terminated;

 
	
  

 	
  

 
	
  

 	
 c)

 	
 No
 payments made in connection with the termination of the Plan occur earlier
 than 12 months following the Plan termination date other than payments the
 Plan would have made irrespective of Plan termination;

 
	
  

 	
  

 
	
  

 	
 d)

 	
 All payments made in
 connection with the termination of the Plan are completed within 24 months following the Plan termination date;

 

	
  

 	
  

 	
  

 
	
  

 	
 e)

 	
 The
 Company does not establish a new plan of a similar type as defined in Treas.
 Reg. §1.409A -l(c)(2)(i), within 3 years following the Plan termination date
 of the portion of the Plan which has been terminated; and,

 
	
  

 	
  

 
	
  

 	
 f)

 	
 The
 Company meets any other requirements deemed necessary to comply with
 provisions of the Code and applicable regulations which permit the
 acceleration of the time and form of payment made in connection with plan
 terminations and liquidations.

 

ARTICLE IX - MISCELLANEOUS

	
  

 	
  

 
	
 9.1.

 	
 Unfunded Plan. This plan is an
 unfunded plan maintained primarily to provide deferred compensation benefits
 for a select group of “management or highly-compensated employees” within the meaning of
 Sections 201, 301, and 401 of the Employee Retirement Income Security Act of 1974, as
 amended (“ERISA”), and therefore is exempt from the provisions of Parts 2, 3
 and 4 of
 Title 1 of ERISA.

 
	
  

 	
  

 
	
 9.2.

 	
 Unsecured General Creditor. Notwithstanding any
 other provision of this Plan, Participants and Participants’ Beneficiary
 shall be unsecured general creditors, with no secured or preferential rights to any assets of
 Company or any other party for payment of benefits under this Plan. Any property held by
 Company for the purpose of generating the cash flow for benefit payments
 shall remain
 its general, unpledged and unrestricted assets. Company’s obligation under
 the Plan shall be an unfunded and unsecured promise to pay money in the future.

 
	
  

 	
  

 
	
 9.3.

 	
 Trust Fund. Company shall be responsible
 for the payment of all benefits provided under the Plan. At its
 discretion, Company may establish one (1) or more trusts, with such trustees as the Board may approve, for the purpose of
 assisting in the payment of such benefits. The assets of any such trust shall be held for payment of all
 Company’s general creditors in the event of insolvency. To the extent any
 benefits provided under the Plan are paid from any such trust, Company shall have no further obligation to pay them. If not
 paid from the trust, such benefits shall remain the obligation of Company.

 
	
  

 	
  

 
	
 9.4.

 	
 Nonassignability. Neither a Participant
 nor any other person shall have any right to commute, sell, assign, transfer, pledge,
 anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey
 in advance of actual receipt the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to
 which are, expressly declared to be unassignable and non- transferable. No part of the amounts payable
 shall, prior to actual payment, be subject to seizure or sequestration for the payment of any debts,
 judgements, alimony or separate maintenance owed by a Participant or any
 other person, nor be transferable by operation of law in the event of a
 Participant’s or any other person’s bankruptcy or insolvency.

 
	
  

 	
  

 
	
 9.5.

 	
 Not a Contract of Employment; Not a Contract for Services. This Plan shall not
 constitute an agent’s contract
 or a contract for services of any kind between the Company and the
 Participant. Nothing in this Plan shall
 give a Participant the right to retain the Participant’s full time soliciting agent’s contract or otherwise be
 retained in the service of the Company or to interfere with the right of the
 Company to terminate its relationship with a Participant at any time, in
 accordance

 

	

 	
  

 
	
  

 	
 with the terms of the
 Participant’s full time soliciting agent’s contract or other contract
 governing the relationship between the parties.

 
	
  

 	
  

 
	
 9.6.

 	
 Protective
 Provisions. A
 Participant will cooperate with Company by furnishing any and all information requested by Company, in order to
 facilitate the payment of benefits hereunder, and by taking such physical examinations as Company
 may deem necessary and taking such other action as may be requested by Company.

 
	
  

 	
  

 
	
 9.7.

 	
 Governing
 Law. The
 provisions of this Plan shall be construed and interpreted according to the laws of the State of Iowa, except as
 preempted by federal law.

 
	
  

 	
  

 
	
 9.8.

 	
 Validity. If any provision of
 this Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect
 the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal and invalid
 provision had never been inserted herein.

 
	
  

 	
  

 
	
 9.9.

 	
 Notice. Any notice required
 or permitted under the Plan shall be sufficient if in writing and hand
 delivered or sent by registered or certified mail. Such notice shall be
 deemed given as of the date of
 delivery or, if delivery is made by mail, as of the date shown on the
 postmark on the receipt for registration
 or certification. Mailed notice to the Committee shall be directed to the
 company’s address. Mailed notice to
 a Participant or Beneficiary shall be directed to the individual’s last known address in company’s records.

 
	
  

 	
  

 
	
 9.10.

 	
 Successors. The provisions of this Plan shall bind and
 inure to the benefit of Company and its successors
 and assigns. The term successors as used herein shall include any corporate
 or other business entity which
 shall, whether by merger, consolidation, purchase or otherwise acquire all or
 substantially all of the business and assets of Company, and successors of
 any such corporation or other business entity.

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WLNNEBAGO INDUSTRIES, INC.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 BY: 

 	
 

 
	
  

 	
 Vice President, General Counsel & Secratary

 
	
  

 	
  

 	
  

 
	
  

 	
 DATED: 

 	
 November 20, 2008agreementexhibit.htm

Form-Director Indemnification Agreement

INDEMNIFICATION AGREEMENT

THIS AGREEMENT (the “Agreement”) is made on this ___ day of _____________, 2009 between BUCKEYE TECHNOLOGIES INC., a Delaware corporation (the “Company”), and [Name] (“Indemnitee”):

 

W I T N E S S E T H:

WHEREAS, Indemnitee is a member of the Board of Directors (the “Board”) of the Company and in such capacity performs a valuable service for the Company; and

 

WHEREAS, the Company’s certificate of incorporation and bylaws authorize the Company to indemnify its officers and directors to the full extent authorized by the Delaware General Corporation Law (the “Statute”); and

 

WHEREAS, the Statute specifically provides that the indemnification provided thereunder is not exclusive of any other rights in respect to indemnification to which those seeking indemnification may be entitled; and

 

WHEREAS, the Statute contemplates that agreements may be entered into between the Company and each of the members of its Board with respect to indemnification; and

 

WHEREAS, in order to enhance Indemnitee’s continued and effective service to the Company, and in order to induce Indemnitee to provide continued services to the Company as a director, the Company wishes to enter into this Agreement relating to the indemnification of, and the advancement of expenses
to, Indemnitee as well as to the coverage of Indemnitee under the Company’s directors’ and officers’ liability insurance policies (the “D&O Insurance”).

 

NOW, THEREFORE, in consideration of Indemnitee’s continued service as a member of the Board, the parties hereby, agree as follows:

 

1. DEFINITIONS.  In addition to other terms defined and used in this Agreement, the following capitalized terms when used in this Agreement shall have the following meanings:

 

	
(a)  
	
“Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person.  For the purposes of this definition, “control,” when used with respect to
any specified Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

	
(b)  
	
“Associate” shall have the meaning ascribed to such term in Exchange Act Rule 12b-2.

 

	
(c)  
	
“Beneficial Owner” shall have the meaning ascribed to such term, and be determined in the manner set forth, in Exchange Act Rule 13d-3.

 

 

 

 

	
(d)  
	
“Board” has the meaning ascribed to such term in the first recital.

 

	
(e)  
	
“Change in Control” means the earliest of the following to occur:

 

	
(1)  
	
the public announcement by the Company or by any Person (which shall not include the Company, any Subsidiary or any employee benefit plan of the Company or of any Subsidiary) (the “Announcing Person”) that the Announcing Person, together with the Acquiring Person’s Affiliates and Associates, is the Beneficial Owner of fifteen percent
(15%) or more of the then outstanding Voting Securities;

 

	
(2)  
	
the commencement of, or after the first public announcement of any Announcing Person of an intention to commence, a tender or exchange offer, the consummation of which would result in any Announcing Person becoming the Beneficial Owner of thirty percent (30%) or more of the then outstanding Voting Securities;

 

	
(3)  
	
the announcement of any transaction relating to the Company that would be required to be described pursuant to the requirements of Item 5.01 of a Current Report on Form 8-K under the Exchange Act;

 

	
(4)  
	
a proposed change in the membership of the Board such that, during any period of twenty-four (24) consecutive months, individuals who at the beginning of such period constitute the Board cease for any reason to constitute at least a majority thereof, unless the election or nomination for election by the shareholders of the Company of each new Director
was approved by a vote of at least two-thirds (2/3) of the Directors then still in office who were members of the Board at the beginning of the twenty-four (24) month period;

 

	
(5)  
	
the Company enters into an agreement of merger, consolidation, share exchange or similar transaction with any other Person other than a transaction which could result in the Voting Securities outstanding immediately prior to the consummation of such transaction continuing to represent (either by remaining outstanding or by being converted into voting securities
of the surviving Person) at least two-thirds of the combined voting power of the Company’s or such surviving Person’s outstanding voting stock immediately after such transaction;

 

	
(6)  
	
the Board approves a plan of liquidation or dissolution of the Company or an agreement for the sale or disposition by the Company (in one transaction or a series of transactions) of all or substantially all of the Company’s assets to a Person that is not an Affiliate of the Company; or

 

	
(7)  
	
any other event which shall be deemed by a majority of the Board to constitute a “Change in Control.”

 

 

 

2

 

 

	
(f)  
	
“Corporate Status” describes the status of an individual who is or was a Director (including corresponding service as an Officer) of the Company or a director, officer, partner, trustee, employee or agent of any other Person at the request of the Company.  A Director
is considered to be serving as a trustee of an employee benefit plan at the Company’s request if such director’s duties to the Company also impose duties on, or otherwise involve services by, such director to the participants in or beneficiaries of the plan.  For the purposes of this Agreement, if an Indemnitee serves as a director of a subsidiary, whether or not wholly-owned, of the Company, he or she does so at the request of the Company.

 

	
(g)  
	
“Company” has the meaning ascribed to such term in the preamble and also includes, without limitation, any Entity that is the successor entity to the Company by merger, combination, consolidation, or other transaction in which the separate existence of the Company ceases.

 

	
(h)  
	
“D&O Insurance” means the directors’ and officers’ liability insurance policies issued from time to time by one or more reputable insurers as further described in Section 5.

 

	
(i)  
	
“Director” means an individual who is or was a member of the Board and includes, unless the context requires otherwise, the estate or personal representative of a Director.

 

	
(j)  
	
“Disinterested Director” means a Director, who at the time of any vote referred to in Section 8.2, Section 8.3 or Section 9, is not:

 

	
(1)  
	
A party to the Proceeding giving rise to the subject matter of the decision being made; or

 

	
(2)  
	
An individual having a familial, financial, professional or employment relationship with Indemnitee whose indemnification or advance for Expenses is the subject of the decision being made, which relationship would, in the circumstances, reasonably be expected to exert an influence on such Director’s judgment when voting on
the decision being made.

 

	
(k)  
	
“Entity” means a corporation (including any Subsidiary), partnership, limited liability company, joint venture, joint-stock corporation, trust, employee benefit plan, association, foundation, organization, or other enterprise or legal entity, unincorporated organization or government
(or any subdivision, department, commission or agency thereof).

 

	
(l)  
	
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

	
(m)  
	
“Expenses” includes attorneys’ fees and retainers, court costs, transcript costs, fees of experts, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and other disbursements or expenses of the types customarily
incurred in connection with a Proceeding that are actually and reasonably incurred by Indemnitee:

 

 

 

3

 

 

	
(1)  
	
by reason of the Indemnitee’s being a Party or in connection with the defense or settlement of a Proceeding;

 

	
(2)  
	
in connection with a Proceeding for which Indemnitee is requested or subpoenaed to appear as a witness;

 

	
(3)  
	
enforcing the Indemnitee’s rights under this Agreement or any other agreement or under applicable law, the certificate of incorporation or the bylaws of the Company or any applicable Subsidiary now or hereafter in effect relating to indemnification for Proceedings and including, without limitation, claims for payment of Interim Expenses or for establishing
a right to indemnification pursuant to Section 8.6; or

 

	
(4)  
	
in connection with the Indemnitee’s pursuing a recovery under the D&O Insurance.

 

	
(n)  
	
“Interim Expenses” means Expenses incurred by Indemnitee in connection with any Proceeding in advance of the final disposition of the Proceeding.

 

	
(o)  
	
“Loss” and “Losses” means any amount which Indemnitee incurs or becomes obligated to pay as a result of any Proceeding, including, without limitation:

 

	
(1)  
	
all judgments, penalties and fines, and amounts paid or to be paid in settlement;

 

	
(2)  
	
all interest, assessments and other charges paid or payable in connection therewith; and

 

	
(3)  
	
any federal, state, local or foreign taxes imposed (net of the value to Indemnitee of any tax benefits resulting from tax deductions or otherwise as a result of the actual or deemed receipt of any payments under this Agreement).

 

	
(p)  
	
“Officer” means an individual who is or was an officer of the Company and/or any Subsidiary. “Officer” includes, unless the context requires otherwise, the estate or personal representative of an officer.

 

	
(q)  
	
“Party” includes an individual who was, is, or is threatened to be made, a named defendant or respondent in a Proceeding by reason of such individual’s Corporate Status or, in the case of a Spouse, that person’s status as a spouse of an Indemnitee.

 

	
(r)  
	
“Person” means any individual or Entity.

 

 

 

4

 

 

	
(s)  
	
“Proceeding” means any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, arbitrative, or investigative, whether formal or informal, any appeal in such an action, suit, or proceeding, and any inquiry or investigation that could
lead to such an action, suit, or proceeding, whether formal or informal including, without limitation, any Proceeding that in any way arises out of or is related to Indemnitee’s Corporate Status or, in the case of a Spouse, seeks damages recoverable from marital community property, jointly-owned property or property purported to have been transferred from Indemnitee to a Spouse.

 

	
(t)  
	
“Special Legal Counsel” means a law firm or an attorney that:

 

	
(1)  
	
neither is nor in the past five years has been retained to represent in any material matter the Company, any Subsidiary, Indemnitee, any other party to the Proceeding, or any of their respective Affiliates or Associates;

 

	
(2)  
	
under applicable standards of professional conduct then prevailing would not have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights to indemnification under this Agreement; and

 

	
(3)  
	
is reasonably acceptable to the Company and Indemnitee.

 

	
(u)  
	
“Spouse” means any person to whom Indemnitee is legally married at any time Indemnitee is covered under the indemnification provided in this Agreement and includes a person to whom an Indemnitee did not remain married during the entire period of such coverage.

 

	
(v)  
	
“Subsidiary” of a Person means any Entity at least fifty percent (50%) of the ownership interests having ordinary voting power of which shall at the time be owned or controlled, directly or indirectly, by such Person or by one or more of its Subsidiaries or by such Person and
one or more of its Subsidiaries.  Unless otherwise expressly provided, all references in this Agreement to a “Subsidiary” shall mean a Subsidiary of the Company.

 

	
(w)  
	
“Trust” and “Trustee” shall have the respective meanings set forth in Section 9.

 

	
(x)  
	
“Voting Securities” means any securities of the Company that vote generally in the election of Directors.

 

2. INDEMNIFICATION.  Subject to the exclusions specified in Section 3 and to the procedure set forth in Sections 8.1 through 8.6 (and in addition to the obligation under Sections 7.1 and
7.2 to pay Interim Expenses), the Company shall indemnify and hold harmless Indemnitee against:

 

	
(a)  
	
any Expenses; and

 

 

 

5

 

 

	
(b)  
	
any Losses.

 

Notwithstanding any other provision of this Agreement or otherwise, to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in the defense of any Proceeding or any claim, issue or matter therein, the Company shall indemnify Indemnitee against all Expenses and Losses actually and reasonably
incurred by the Indemnitee or on the Indemnitee’s behalf in connection therewith.  If Indemnitee is entitled under any provision of this Agreement to indemnification for some or a portion of any Expense or Loss, but not, however, for the total amount thereof, the Company nevertheless shall indemnify Indemnitee for the portion thereof to which the Indemnitee is entitled.  For purposes of this Section 2 and without limitation:

 

	
  
	
(a)
	
the termination of any Proceeding or any claim, issue or matter in a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such Proceeding, claim, issue or matter;

 

	
  
	
(b)
	
the termination of a proceeding by a judgment, order, settlement, conviction or upon a plea of nolo contendere or its equivalent is not, of itself, determinative that the Indemnitee did not act in good faith, did not meet a particular standard of conduct, did not have any particular belief, or that a court has determined that indemnification is not permitted by applicable law;

 

	
  
	
(c)
	
for purposes of any determination of good faith, the Indemnitee shall be presumed to have acted in good faith, if the Indemnitee relied on information, opinions, reports or statements, including financial statements or other financial data prepared or presented by one or more officers or employees of the Company whom the Indemnitee reasonably believed to be reliable and competent in the matters presented or by legal
counsel, public accountants or other persons as to matters the Indemnitee reasonably believed were within the person’s professional or expert competence; provided, however, the Indemnitee shall not be presumed to be acting in good faith, if the Indemnitee has actual knowledge concerning the matter in question that makes such reliance unwarranted; and

 

	
  
	
(d)
	
the Director shall be presumed to be entitled to indemnification, subject to the Company’s ability to rebut such presumption.

 

3. EXCLUSIONS.  The Company shall not be obligated to indemnify Indemnitee for Expenses or Losses under either Section 2(a) or 2(b):

 

	
(a)  
	
to the extent such indemnification would reduce or eliminate any payments to or on behalf of Indemnitee under any D&O Insurance covering Indemnitee;

 

	
(b)  
	
to the extent of any Expenses or Losses for which Director is indemnified pursuant to the certificate of incorporation or bylaws of the Company or any D&O Insurance carried by the Company;

 

	
(c)  
	
on account of any claim against Indemnitee arising out of the trading of the Company’s securities while possessing material non-public information or for profits arising from the purchase and sale by Indemnitee of securities in accordance with the provisions of § 16(b) of the Exchange Act or any similar provisions of any federal or state statutory
law;

 

 

 

6

 

 

	
(d)  
	
if a final judgment or other final adjudication by a court having jurisdiction in the matter shall determine that such indemnity is not lawful;

 

	
(e)  
	
in respect of any Proceeding initiated by Indemnitee against the Company, any Subsidiary or any Director or Officer unless

 

	
(1)  
	
the Company has joined in or consented to the initiation of such Proceeding; or

 

	
(2)  
	
the Proceeding is for recovery of Expenses described in Section 1(m)(3) or Section 1(m)(4);

 

	
(f)  
	
for any amounts paid in settlement of any Proceeding without the Company’s prior written consent, which consent shall not be unreasonably withheld or delayed;

 

	
(g)  
	
in connection with any Proceeding if it has been finally adjudicated by a court of competent jurisdiction that, in connection with the subject of the Proceeding out of which the claim for indemnification has arisen, Indemnitee:

 

	
(1)  
	
did not act in good faith and in a manner believed by him or her to be in or not opposed to the best interests of the Company; and

 

	
(2)  
	
in the ease of any criminal Proceeding, failed to have reasonable cause to believe that his or her conduct was not unlawful; or

 

	
(h)  
	
in connection with any Proceeding if it has been finally adjudicated by a court of competent jurisdiction that, in connection with the subject of the Proceeding out of which the claim for indemnification has arisen, Indemnitee is liable to the Company including, without limitation, a claim that Indemnitee received an improper personal benefit, unless the
court of law or another court in which such Proceeding was brought shall determine upon application that, despite the adjudication of liability, but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such Expenses or Losses which such court shall deem proper.

 

4. EFFECT OF CERTAIN RESOLUTIONS.  Neither the settlement or termination of any Proceeding nor the failure of the Company to award indemnification or to determine that indemnification is
payable shall create an adverse presumption that Indemnitee is not entitled to indemnification hereunder.  To the maximum extent permitted by applicable law in making a determination with respect to entitlement to indemnification under this Agreement, it shall be presumed that Indemnitee is entitled to indemnification or payment under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 8.1; and the Company shall have the burden of proof to overcome that
presumption in connection with the making of any determination pursuant to either of Sections 8.2 or 8.3 that is contrary to that presumption.  In addition, the termination of any Proceeding by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent, shall not affect adversely either the right of Indemnitee
to indemnification under this Agreement or the presumptions to which Indemnitee is otherwise entitled pursuant to the provisions of this Agreement nor create a presumption that Indemnitee did not meet any particular standard of conduct or have a particular belief or that a court has determined that indemnification is not permitted by applicable law.  If Indemnitee is serving an employee benefit plan at the request of the Company or a Subsidiary, Indemnitee’s conduct with respect to the plan for
a purpose he or she reasonably believed to be in the best interests of the participants in, and the beneficiaries of, the plan shall be deemed to be not opposed to the best interests of the Company or the Subsidiary.

 

 

 

7

 

 

5. D&O INSURANCE.

 

5.1 The Company presently has in force and effect policies of D&O Insurance, copies of which are available for inspection by Indemnitee at the Company’s principal executive offices.

 

5.2 The Company covenants and agrees that, subject only to the provisions of Section 5.3, the Company shall maintain D&O Insurance providing, in all respects, coverage at least comparable and in the same amount as the D&O Insurance
in effect on the date of this Agreement for so long as Indemnitee shall continue to serve as a Director or Officer, and thereafter so long as Indemnitee shall be subject to any possible Proceeding.

 

5.3 The Company shall have no obligation under Section 5.2 to maintain D&O Insurance if a majority of the Company’s independent (non-employee) directors determines in good faith, as a matter of reasonable business judgment,
that such insurance is not reasonably available, the premium cost for such insurance is substantially disproportionate to the amount of coverage provided, or the coverage provided by such insurance is so limited by exclusions as to provide an insufficient benefit.  The Company shall promptly inform Indemnitee in writing of such determination.

 

5.4 The Company’s indemnification obligation to Indemnitee under this Agreement shall not be affected by any reduction in, or cancellation of, the D&O Insurance (whether voluntary or involuntary on behalf of the Company).

 

6. NOTIFICATION AND DEFENSE OF CLAIMS.

 

6.1 Indemnitee shall give notice in writing to the Company as soon as practicable after Indemnitee becomes aware of any Proceeding with respect to which indemnification will or could be sought under this Agreement; provided that the failure
of Indemnitee to give such notice shall not relieve the Company of any obligations it may have to Indemnitee otherwise than under this Agreement.

 

6.2 In the event any Proceeding is by or in the right of the Company or any Subsidiary, Indemnitee may, at the option of Indemnitee, either control the defense thereof or accept the defense provided under the D&O Insurance; provided,
however, that Indemnitee may not control the defense if such decision would affect the coverage provided by the D&O Insurance, if any, to Indemnitee, the Company, any Subsidiary or the other Directors and Officers covered thereby.  The Company shall not be entitled to assume the defense of any Proceeding brought by or in the right of the Company or any Subsidiary.

 

 

 

8

 

 

6.3 In the event any Proceeding is other than by or in the right of the Company or any Subsidiary, the Company shall be entitled to participate therein at its own expense. Except as otherwise provided below, at the option of the Company,
the Company, alone or jointly with any other notified indemnifying party, shall be entitled to assume the defense of any such Proceeding of which Indemnitee notifies the Company, with counsel mutually acceptable to the Company and to Indemnitee.  After notice from the Company to Indemnitee of the Company’s decision to assume the defense in any Proceeding, the Company shall not be liable to Indemnitee under this Agreement for any Expenses subsequently incurred by Indemnitee in connection with the
defense of the Proceeding other than reasonable costs of investigation, travel expenses or as otherwise provided below.  Indemnitee shall have the right to employ counsel in such Proceeding but the Expenses in connection with employment of such counsel shall be paid by Indemnitee unless:

 

	
(a)  
	
the employment of such counsel by Indemnitee has been authorized by the Company;

 

	
(b)  
	
Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of the defense of such Proceeding; or

 

	
(c)  
	
the Company shall not within sixty (60) days after Indemnitee has provided the Company notice of a Proceeding in fact have employed counsel to assume the defense of such Proceeding;

 

in each of which cases the Expenses in connection with such Proceeding shall be paid by the Company.  The Company shall not be entitled to assume the defense of any Proceeding as to which Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the course of defense
of such Proceeding.

6.4 In no event shall the Company authorize any settlement imposing any liability or other obligations on Indemnitee without the express prior written consent of Indemnitee.

 

7. INTERIM EXPENSES.

 

7.1 The Company shall advance Interim Expenses incurred by Indemnitee.  By signing below, Indemnitee hereby undertakes to repay any amounts advanced pursuant to this Section 7.1 if it is ultimately determined by a court of competent
jurisdiction that Indemnitee is not entitled to indemnification pursuant to this Agreement.  To obtain payment of Interim Expenses under this Agreement, Indemnitee shall submit to the Company a written request for payment, together with such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to such advancement.  Indemnitee must also furnish to the Company a written affirmation of
such Indemnitee’s good faith belief that:

 

 

 

9

 

 

	
(a)  
	
the Indemnitee has conducted himself or herself in good faith and that he or she reasonably believed that

 

	
(1)  
	
in the case of conduct in the Indemnitee’s Corporate Status, that his or her conduct was in the Company’s or such Subsidiary’s best interests;

 

	
(2)  
	
in all other cases, his or her conduct was at least not opposed to the Company’s or such Subsidiary’s best interests; and

 

	
(3)  
	
in the case of any criminal proceeding, the Indemnitee had no reasonable cause to believe his or her conduct was unlawful, or

 

	
(b)  
	
the Proceeding involves conduct for which liability has been eliminated under a provision of the applicable certificate of incorporation, as authorized by applicable law.

 

7.2 Payment of Interim Expenses shall be made without regard to Indemnitee’s ability to repay the advance and without regard to Indemnitee’s ultimate entitlement to indemnification under the provisions of this Agreement.  Indemnitee’s
obligation to repay the Company for advances shall be unsecured and no interest shall be charged thereon.  Requests for payment of Interim Expenses in accordance with Section 7.1 shall be paid by the Company no later than thirty (30) days following any such request.

 

8. DETERMINATIONS AND PAYMENTS OF INDEMNIFICATION.

 

8.1 To obtain indemnification under Section 2, Indemnitee shall submit to the Company a written request, together with such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine
whether and to what extent Indemnitee is entitled to indemnification.

 

8.2 Prior to the occurrence of any Change in Control, the Person or Persons who shall determine whether and to what extent Indemnitee is entitled to indemnification (the “Reviewing Party”) shall be

 

	
(a)  
	
if there are two (2) or more Disinterested Directors, the Board, which may act by a majority vote of all the Disinterested Directors, or by a majority of the members of a committee composed of two (2) or more Disinterested Directors appointed by such a vote; or

 

	
(b)  
	
Special Legal Counsel selected either:

 

	
(1)  
	
if there are fewer than two (2) Disinterested Directors, by the Board, in which selection Directors who do not qualify as Disinterested Directors may participate;

 

	
(2)  
	
by a majority vote of Disinterested Directors; or

 

 

 

10

 

 

	
(3)  
	
by the shareholders of the Company (if submitted by the Board) but Voting Securities under the Control of any Indemnitee who is at the time a Party may not be voted.

 

The Company shall notify Indemnitee in writing no later than two (2) business days following any determination with respect to the extent of entitlement to indemnification under this Agreement.

8.3 After the occurrence of a Change in Control, the Reviewing Party shall be Special Legal Counsel selected in the manner set forth in Section 8.2(b) and approved by Indemnitee (which approval shall not be unreasonably withheld).  With
respect to all matters arising after a Change in Control concerning the rights of Indemnitee to indemnification under this Agreement (including the determinations required in the context of Section 9) or any other agreement or under applicable law, the certificate of incorporation or the by-laws of the Company or any applicable Subsidiary now or hereafter in effect relating to indemnification for Proceedings, the Company shall seek legal advice only from such Special Legal Counsel.  Such Special Legal
Counsel, among other things, shall render its written opinion to the Company and Indemnitee as to whether and to what extent Indemnitee should be permitted to be indemnified under applicable law.  The Company agrees to pay the reasonable fees of such Special Legal Counsel and indemnify fully such Special Legal Counsel against any and all expenses (including attorneys’ fees), claims, liabilities, loss, and damages arising out of or relating to this Agreement or the engagement of such Special Legal
Counsel pursuant hereto.

 

8.4 If a determination is made, in accordance with Section 8.2 or 8.3, that Indemnitee is entitled to all or a portion of the requested indemnification, payment to Indemnitee shall be made within thirty (30) days after such determination.

 

8.5 In the event that no determination of entitlement to indemnification shall have been made within sixty (60) days after Indemnitee has made a request in accordance with Section 8.1, the Indemnitee shall be deemed entitled to such indemnification,
absent actual fraud in the request for indemnification or a prohibition of indemnification under applicable law; provided, however, such sixty-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person or persons making the determination decide in good faith that additional time is required for obtaining or evaluating documentation or other relevant information.

 

8.6 In the event that either:

 

	
(a)  
	
payment of indemnification pursuant to Section 8.4 is not made within thirty (30) days after a determination has been made that Indemnitee is entitled to indemnification;

 

	
(b)  
	
payment of indemnification pursuant to Section 8.5 is not made within thirty (30) days after Indemnitee is deemed to be entitled to indemnification in accordance with the provisions thereof;

 

	
(c)  
	
it is determined pursuant to Section 8.2 or 8.3 that Indemnitee is not entitled to indemnification under this Agreement or is only entitled to a portion of such indemnification; or

 

 

 

11

 

 

	
(d)  
	
Indemnitee has not received advancement of Interim Expenses within thirty (30) days after making such a request in accordance with Section 7.1;

 

Indemnitee shall have the right to enforce the indemnification rights under this Agreement by commencing litigation in any court of competent jurisdiction in the State of Delaware seeking payment of indemnification or challenging any determination made in accordance with Section 8.2 or 8.3 or any aspect thereof.  Any determination
made in accordance with Section 8.2 or 8.3 not challenged by Indemnitee on or before the first anniversary of the date of the determination shall be binding on the Company and Indemnitee.  The remedy provided for in this Section 8.6 shall be in addition to any other remedies available to Indemnitee in law or equity.

9. ESTABLISHMENT OF TRUST.  After the occurrence of a Change in Control, upon the request of Indemnitee, the Company shall create a trust (the “Trust”)
for the benefit of Indemnitee and from time to time, when requested by Indemnitee, shall fund the Trust in an amount sufficient to satisfy any and all Interim Expenses and Expenses reasonably anticipated to be incurred in connection with investigating, preparing for, participating in, and/or defending any Proceeding.  The amount or amounts to be deposited in the Trust pursuant to the foregoing funding obligation shall be determined by Special Legal Counsel.  In making such determination, the
Special Legal Counsel shall consider, among other things, any continuing availability of D&O Insurance as a source to pay such Interim Expenses and Expenses.  The terms of the Trust shall provide that

 

	
(a)  
	
the Trust shall not be revoked or the principal thereof invaded, without the written consent of Indemnitee;

 

	
(b)  
	
the Trustee shall advance, within thirty (30) days of a request by Indemnitee, any and all Interim Expenses to Indemnitee (and Indemnitee hereby agrees to repay the Trust under the same circumstances for which Indemnitee would be required to repay the Company under Section 7.1);

 

	
(c)  
	
the Trust shall continue to be funded by the Company in accordance with the funding obligation set forth above;

 

	
(d)  
	
the Trustee shall promptly pay to Indemnitee all amounts for which Indemnitee shall be entitled to indemnification under Section 2 and/or Section 8.3 of this Agreement; and

 

	
(e)  
	
all unexpended funds in the Trust shall revert to the Company upon a final determination by Special Legal Counsel or a court of competent jurisdiction, as the case may be, that Indemnitee has been fully indemnified under the terms of this Agreement and that, as a matter of law, no further Proceedings may be instituted against Indemnitee with respect to
which Indemnitee may be entitled to indemnification under this Agreement.

 

The trustee (the “Trustee”) shall be a bank or trust company chosen by the Company and reasonably satisfactory to Indemnitee.  Nothing in this Section 9 shall relieve the Company of any of its obligations under this Agreement.  All income earned on the assets in the Trust shall be reported as income by the Company
for federal, state, local, and foreign tax purposes.  The Company shall pay all costs of establishing and maintaining the Trust and shall indemnify the Trustee against any and all expenses (including attorneys’ fees), claims, liabilities, loss, and damages arising out of or relating to this Agreement or the establishment and maintenance of the Trust.

 

 

 

12

 

 

10. COOPERATION; SUBROGATION.  Indemnitee shall keep the Company generally informed of, and shall consult with the Company with respect to, the status of any Proceeding for which Indemnitee
is claiming indemnity under this Agreement.  In addition, Indemnitee agrees to give the Company such information and cooperation as the Company may reasonably require and as shall be within Indemnitee’s power regarding any Proceeding, which is or may be subject to this Agreement.  In the event of any payment under this Agreement to or on behalf of Indemnitee, the Company shall be subrogated to the extent of such payment to all of the rights of recovery in Indemnitee against any Person
other than the Company or Indemnitee in respect of the Proceeding giving rise to such payment.  Indemnitee shall execute all papers reasonably required and shall do everything reasonably necessary to secure such rights, including the execution of such documents reasonably necessary to enable the Company effectively to bring suit to enforce such rights.

 

11. CONTINUATION OF INDEMNITY.  All agreements and obligations of the Company contained in this Agreement shall continue during the period Indemnitee is a Director or Officer and shall continue
thereafter, even though Indemnitee may have terminated his or her service as a Director or Officer of the Company, so long as Indemnitee shall be subject to any threatened, pending or completed Proceeding by reason of Indemnitee’s Corporate Status.

 

12. RELIANCE.  The Company has entered into this Agreement in order to induce Indemnitee to continue as a member of the Board, and acknowledges that Indemnitee is relying upon this Agreement
in continuing in such capacity.

 

13. SEVERABILITY.  Each of the provisions of this Agreement is a separate and distinct agreement and independent of the others, so that if any provision of this Agreement shall be held to
be invalid or unenforceable for any reason, such invalidity or unenforceability shall not affect the validity or enforceability of this Agreement’s other provisions.  To the extent permitted by law, the parties waive any provision of law, which renders any such provision prohibited or unenforceable in any respect.

 

14. CONTRACT RIGHTS NOT EXCLUSIVE. The contract rights conferred by this Agreement are in addition to, but not exclusive of, any other right which Indemnitee may have or may hereafter acquire under
any statute, the certificate of incorporation or the bylaws of the Company, or any agreement, vote of stockholders or disinterested directors, or otherwise.  The rights granted in this Agreement supersede any similar right granted under any previous written agreement between the Company and Indemnitee with respect to the subject matter of this Agreement.

 

15. EFFECT OF CHANGES IN LAW OR CORPORATE DOCUMENTS.  No changes in the law and no amendment to the certificate of incorporation or the bylaws of the Company after the date of this Agreement
shall have the effect of limiting or eliminating the indemnification available under this Agreement as to any act or omission which has occurred, or capacity in which Indemnitee served, prior to such amendment.  If, after the date of this Agreement, any change in any applicable law, statute, or rule expands the power of the Company to indemnify a person based on such person’s Corporate Status, Indemnitee’s rights and the Company’s obligations under this Agreement shall be expanded,
without any action by Indemnitee or the Company, to include such change.  If any change in any applicable law, statute, or rule narrows the right of the Company to indemnify a person based on such person’s Corporate Status, such change, except to the extent otherwise required by law, shall have no effect on this Agreement or the parties’ rights or obligations hereunder.

 

 

 

13

 

 

16. SPOUSAL INDEMNIFICATION.  Subject to the same standards, limitations, obligations and conditions under which indemnification is provided to an Indemnitee under this Agreement, the Company
shall indemnify a Spouse who is or is threatened to be made a Party to a Proceeding solely by reason of his or her status as Indemnitee’s spouse.  A Spouse also may be entitled to advancement of Expenses to the same extent that Indemnitee is entitled to advancement of Expenses herein.

 

17. SUCCESSORS AND ASSIGNS.  This Agreement shall be binding upon the Company and its successors and assigns, including, without limitation, any corporation or other entity which may have
acquired all or substantially all of the Company’s assets or business or into which the Company may be consolidated or merged, and shall inure to the benefit of Indemnitee and his/her spouse, successors, assigns, heirs, devisees, executors, administrators or other legal representatives.  The Company shall require any successor or assignee (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by written
agreement in form and substance reasonably satisfactory to the Company and Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession or assignment had taken place.

 

18. MISCELLANEOUS.

 

	
(a)  
	
This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.

 

	
(b)  
	
As herein used, the singular number shall include the plural and the plural the singular, unless the context would clearly not admit such construction.  Section or paragraph headings are employed herein solely for convenience of reference, and such headings shall not be used in construing any term or provision of this Agreement.  All
references herein to “section” or “paragraph” shall mean the appropriate numbered section or paragraph of this Agreement except where reference is particularly made to some other instrument or document.

 

	
(c)  
	
All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally, effective when delivered, or if delivered by express delivery service, effective when delivered, or if delivered via facsimile, effective when such facsimile transmission is sent (with a confirmed receipt thereof) or if mailed by registered
or certified mail (return receipt requested), effective three (3) Business Days after mailing, to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

 

 

 

 

14

 

 

 

	
  
	
If to the Company:

	
  
	
Buckeye Technologies Inc.

	
Attn:
	 

	
  
	
1001 Tillman Street

	
  
	
Memphis, TN 38112

	
  
	
If to Indemnitee:

	
  
	 

	
  
	 

	
  
	 

	
  
	 

	
(d)  
	
Except as provided in Section 15 of this Agreement, no amendment, modification or termination of this Agreement shall be effective unless in writing signed by both parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement (whether or not similar),
nor shall such waiver constitute a continuing waiver.

 

	
(e)  
	
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

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

 

BUCKEYE TECHNOLOGIES INC.

By:                                                                

Title:  _______________________________

 

 

 

 

 

 

 

                              
_____________________________________

                              
[NAME], Director

 

15

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