Document:

Exhibit 10.3

TRIPLICATE ORIGINAL
[DATE]

NON-QUALIFIED STOCK OPTION
AGREEMENT FOR NON-EMPLOYEE DIRECTORS

This NON-QUALIFIED STOCK
OPTION AGREEMENT (“Agreement”) is made by and between Cutter & Buck
Inc., a Washington corporation (the “Company”) and [NON-EMPLOYEE DIRECTOR NAME]
(the “Optionee”) granting a non-qualified stock option for a total of [NO. OF
SHARES] shares of Common Stock (hereinafter the “Option”) of the Company to the
“Optionee” at the price determined as provided in, and in all respects subject
to, the terms, definitions and provisions of the Cutter & Buck Inc. 2006
Equity Incentive Plan (the “Plan”).

1.             Option Price. 
The option price is $[PRICE] for each share, being one hundred percent
(100%) of the fair market value of the Company’s Common Stock, as determined in
accordance with Sections 5.3 and 16.12 of the Plan.

2.             Vesting and Exercise of Option.  Options granted under this Agreement shall
vest and be exercisable in accordance with the following provisions.

a.             Rights to
Exercise.  The Option shall vest in
ten (10) monthly installments of [NO. OF SHARES] shares, commencing on [START
DATE] and ending on [END DATE]

b.             Method of
Exercise.  This Option shall be
exercisable by a written notice which shall:

(i).                                  State the election to exercise the Option, the
number of shares in respect of which it is being exercised, the person in whose
name the stock certificate or certificates for such shares of Common Stock is
to be registered, his address and Social Security Number (or if more than one,
the names, addresses and Social Security Numbers of such person);

(ii).                               Be signed by the person or persons entitled to the Option and, if the
Option is being exercised by any person or persons other than the Optionee, be
accompanied by proof, satisfactory to counsel for the Company, of the right of
such person or persons to exercise the Option;

(iii).                            Be in writing and delivered in person or by certified mail to the
President, Secretary or other authorized officer of the Company at the Company’s
principal place of business; and

 

(iv.)                            Be accompanied by payment of the purchase price for the shares which
the Optionee elects to purchase.  Such
payment may be made in whole or in part (A) in cash (by check) or (B) by any of
the available means set forth in Sections 6.2, 6.3 or 6.4 of the Plan.

c.             Restrictions on
Exercise.  This Option may not be
exercised if the issuance of the shares upon such exercise would constitute a
violation of any applicable federal or state securities or other law or valid
regulation.  If originally received
pursuant to any Company benefit plan, shares of Common Stock swapped in payment
of the exercise price must have been held by Optionee for at least six (6)
months.  As a condition to the exercise
of this Option the Company may require the person exercising the Option to make
any representation and warranty to the Company as the Company’s counsel
believes may be required by any applicable law or regulations.

3.             Non-transferability of the Option.  Except as otherwise provided herein, this
Option may not be sold, pledged, assigned or transferred in any manner, other
than by will or the laws of descent and distribution, and may be exercised
during the lifetime of the Optionee only by the Optionee or by the guardian or
legal representative of the Optionee.

4.             Termination of Directorship.  If the Optionee ceases to be a Director of
the Company for any reason, any outstanding Options held by the Optionee shall
be exercisable
according to the following provisions:

a.             If a Optionee ceases to be a Director of the Company for any reason other than
resignation, removal for cause, or death, any outstanding Option held by such
Optionee shall be exercisable by the Optionee (but only if exercisable by the
Optionee immediately prior to ceasing to be Director) at any time prior to the
expiration date of such Option or within three (3) years after the date the Optionee ceases to be a Director, whichever is the
shorter period;

b.             If during his term of office as a
Director a Optionee resigns from the Board or
is removed from office for cause, any outstanding Option held by the Optionee which is not exercisable by the Optionee immediately prior to resignation or removal
shall terminate as of the date of resignation or removal, and any outstanding
Option held by the Optionee which is exercisable by
the Optionee immediately prior to resignation or removal shall be exercisable
by the Optionee at any time prior to the expiration date of such Option or
within three (3) months after the date of resignation or removal of the Optionee,
whichever is the shorter period;

c.             Following the death of a Optionee during service as a director of the Company, any
outstanding Option held by the Optionee
at the time
of death (whether or not exercisable by the Optionee immediately prior to death) shall be exercisable by the person entitled
to do so under the will of the Optionee, or, if the Optionee
shall fail to make testamentary disposition of the Option or shall die
intestate, by the legal representative of the Optionee at any time prior to the
expiration date of such Option or within three (3) years after the date of
death of the Optionee, whichever is the shorter
period; and

d.             Following the death of a Optionee after ceasing to be a Director and 

 2
 

 

during a period when an Option is exercisable
under clause (ii) above, the Option shall be exercisable by such person
entitled to do so under the will of the Optionee or by such legal representative at any time prior to the expiration date
of the Option or within one (1) year after the date of death, whichever is the
shorter period.

An Option
held by a Optionee who has ceased to be a
Director of the Company shall terminate upon the expiration of the applicable
exercise period, if any, specified in this Section 4.

5.             Term of Option. 
This Option may not be exercised more than ten (10) years from the date
of original grant of this Option, and may be exercised during such term only in
accordance with the terms, definitions and provisions of the Plan and this
Agreement.

6.             Adjustments Upon Changes in Capitalization.  As provided in Article 11 of the Plan, the
number and kind of shares of Company stock subject to this Option shall be
appropriately adjusted along with a corresponding adjustment in the Option
price to reflect any stock dividend, stock split, split-up, dividend in partial
liquidation, dividend in property other than cash or extraordinary distribution
to holders of the Common Stock or
any combination, exchange or change of shares, however accomplished.

7.             Termination of
the Plan; No Right to Future Grants; Extraordinary Item of Compensation. By
entering into this Agreement, the Optionee acknowledges: (a) that the Plan is
discretionary in nature and may be suspended or terminated by the Board at any
time; (b) that the grant of the Option is a one-time benefit which does not
create any contractual or other right to receive future grants of options, or
benefits in lieu of options; (c) that all determinations with respect to any
such future grants, including, but not limited to, the times when options shall
be granted, the number of shares subject to each option, the option price, and
the time or times when each option shall be exercisable, will be at the sole
discretion of the Company; and (d) that the Optionee’s participation in the
Plan is voluntary.

8.             Plan;
Restrictions. In all respects this Agreement and the Option granted herein
shall be subject to the terms and provisions of the Plan which has been, or is
being, provided, or otherwise made available, to the Optionee and is
incorporated herein by reference. Accordingly, the rights of the Optionee under
this Agreement and the shares of Common Stock of the Company which the Optionee
may purchase hereunder are subject to certain restrictions as set forth in the
Plan.

9.             Rights Prior to
Exercise of Option. The Optionee shall have no rights as a shareholder with
respect to the shares of Company stock subject to the Option until the exercise
of his rights hereunder and the issuance and delivery to Optionee of a
certificate or certificates evidencing such shares.

10.           Data
Privacy. By entering into this Agreement, the Optionee: (a) authorizes the
Company and any agent of the Company administering the Plan or providing Plan
recordkeeping services, to disclose to the Company or any of its subsidiaries
such information and data as the Company shall request in order to facilitate
the grant of options and the administration of the Plan; (b waives any data
privacy rights he or she may have with respect to such information; and (c)
authorizes the Company to store and transmit such information in electronic
form.

 3
 

 

11.           Applicable Laws
and Consent to Jurisdiction. The validity, construction, interpretation and
enforceability of this Agreement shall be determined and governed by the laws
of the State of Washington without giving effect to the principles of conflicts
of laws. For the purpose of litigating any dispute that arises under this
Agreement, the parties hereby consent to exclusive jurisdiction in State and
agree that such litigation shall be conducted in the courts of King County,
Washington or the federal courts of the United States for the Western District
of Washington.

12.           Severability.
The provisions of this Agreement are severable and if any one or more
provisions may be determined to be illegal or otherwise unenforceable, in whole
or in part, the remaining provisions, and any partially unenforceable provision
to the extent enforceable in any jurisdiction, shall nevertheless be binding
and enforceable.

13.           Waiver. The
waiver by the Company of a breach of any provision of this Agreement by
Optionee shall not operate or be construed as a waiver of any subsequent breach
by Optionee.

14.           Binding Effect.
The provisions of this Agreement shall be binding upon the parties hereto,
their successors and assigns, including, without limitation, the estate of the
Optionee and the executors, administrators or trustees of such estate and any
receiver, trustee in bankruptcy or representative of the creditors of the
Optionee.

15.           Construction.
This Agreement is subject to and shall be construed in accordance with the
Plan, the terms of which are explicitly made applicable hereto. Unless
otherwise defined herein, capitalized terms in this Agreement shall have the
same definitions as set forth in the Plan. In the event of any conflict between
the provisions hereof and those of the Plan, the provisions of the Plan shall
govern.

16.           Counter Originals.  This Agreement may be executed in triplicate
counterpart originals.

	
  DATE OF GRANT: 

  	
   

  	
   

  	
  CUTTER
  & BUCK INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  

 

 4
 

 

Optionee acknowledges and
represents that the Optionee is familiar with the terms and provisions of this
Agreement and the Plan and hereby accepts this Option subject to all the terms
and provisions thereof and hereof. 
Optionee hereby agrees to accept as binding, conclusive and final all
decisions or interpretations of the Corporate Governance, Nominating and
Succession Committee of the Board of Directors of Cutter & Buck upon
any questions arising under this Agreement and the Plan.

	
  DATED: 

  	
   

  	
   

  
	
   

  
	
   

  	
   

  
	
  [NAME], Optionee

  	
   

  

 

 5Exhibit 10.1

SEPARATION LETTER
AND AGREEMENT

Winmark
Corporation (“Company”) and Stephen M. Briggs (“Employee”) have reached the
following Agreement.

I.                                         Recitals

1.               On October 4, 2006,
Mr. Briggs announced his immediate resignation as a director on the Board of
Directors of Winmark Corporation, as well as his resignation from his position
as President and Chief Operating Officer.

2.               The Company and Mr.
Briggs have agreed to a transitional period whereby Mr. Briggs will remain as
an employee of the Company providing consulting and transitional services until
December 31, 2006 (the “Transitional Period”).

3.               Mr. Briggs
acknowledges and agrees that the Transitional Period will not affect his
resignation from the Board of Directors, which will be effective upon the
submission of a written resignation to the Board of Directors.

4.               Mr. Briggs will be
entitled to receive the same bi-monthly compensation and employee benefits
(including participation in the Company’s 401(k) program and health, dental and
life insurance coverage) during the Transitional Period as he would have
otherwise been entitled as President and Chief Operating Officer, so long as he
remains available to the Company via phone and email during the Transitional
Period.

5.               In addition, Mr.
Briggs will be entitled to seventy-five percent (75%) of his annual monetary
bonus on December 31, 2006, awarded at the discretion of the Compensation
Committee of the Board of Directors.

6.               Effective January
1, 2007, Mr. Briggs will no longer be entitled to any additional salary or
employee benefits.  Mr. Briggs will have
the option to pay for his health, dental and life insurance coverage under the
Consolidated Omnibus Budge Reconciliation Act (“COBRA”).  Both parties acknowledge and agree that Mr.
Briggs may continue to obtain coverage under COBRA for eighteen (18) months
following the termination of employee benefits on January 1, 2007.  Information and rates will be mailed to Mr.
Briggs closer to that time.

7.               Information related
to Mr. Briggs’s participation in the Company’s 401(k) Plan will be forthcoming
via mail.

II.            Termination
of Employment Agreement

Mr. Briggs and the
Company acknowledge and agree that the Employment Agreement, dated December 14,
2000, between Grow Biz International, Inc. and Mr. Briggs (“Employment

 

Agreement”) will
terminate on the last day of the Transitional Period without any additional
action by either party.  The Employee
acknowledges and agrees that he has a continuing obligations after the
termination of the Employment Agreement pursuant to Paragraphs 12 (Confidential
Information) and 14 (Non-Solicitation) of the Employment Agreement.

III.           Release

In
consideration for the payments and benefits described herein, which Employee
acknowledges are above and beyond any compensation to which he is otherwise
entitled, Employee agrees for himself and his heirs, assigns and
representatives to release the Company and all of its affiliates, predecessors,
successors, employees, officers, directors, and all other persons, entities,
and corporations from all claims or demands occurring prior to the execution of
this Agreement, whether known or unknown, which Employee may have, including
all claims for costs, expenses, and attorneys’ fees, arising out his
affiliation or relationship with the Company, including by not limited to his
employment with the Company, service as a Director on the Company’s Board of
Directors, termination from employment with the Company or related corporate
offices Employee has held with the Company, and any other dealings with the
Company.

Employee
understands that this Agreement is a full, final and complete settlement and
release of all his claims, including any claims or rights Employee may have for
breach of contract, wrongful discharge, discrimination, misrepresentation, defamation,
promissory estoppel, violation of privacy, breach of covenant of good faith and
fair dealing, for claims under the Employment Retirement Income Security Act of
1974, the Minnesota Human Rights Act, Minn. Stat. Chapter 363, Title VII of the
Civil Rights Act of 1964, 42 U.S.C. § 2000e, et. seq., the
Age Discrimination in Employment Act of 1967, 29 U.S.C. 626, the Americans with
Disabilities Act, 42 U.S.C. § 12101, et seq., The Family and
Medical Leave Act and any other federal, state, or local laws and regulations
governing employment.

IV.                                 No Future Lawsuits

Employee
promises never to file a lawsuit asserting any claims that are released in this
Agreement.

V.                                     Employee’s Right
To Rescind Agreement

Employee
may rescind this Agreement within fifteen (15) calendar days of its execution (“Rescission
Period”).  To be effective, the
rescission must be in writing, and delivered to the Company either by hand or
mail within the 15-day period, and any payments received by Employee under this
Agreement must be repaid upon rescission. 
If delivered by mail, the rescission must be (1) postmarked within the
15-day period; (2) properly addressed to Catherine P. Heaven, Winmark
Corporation, 4200 Dahlberg Drive, Suite 100, Minneapolis, Minnesota 55422; and
(3) sent by certified mail return receipt requested.

 2
 

 

Employee
and Company agree that monetary consideration shall not be provided to Employee
until after the Rescission Period has expired. 
Employee will receive employee benefits during the Review Period
(defined below) and the Rescission Period.

VI.                                 Non-Release of Claims
Arising From Future Acts

This
Agreement does not waive or release any rights or claims under the Company’s
benefit plans, the Age Discrimination in Employment Act or any other claims
that arise 15 days after the date Employee signs this Agreement, nor does this
Agreement waive any claims under the Minnesota Human Rights Act that arise out
of acts or practices occurring 15 days after Employee signs this Agreement.

VII.          Representation by Counsel

Employee
acknowledges he has been advised by Company to seek legal counsel and that he
has consulted with an attorney before executing this Agreement.

VIII.                         Period
for Review and Consideration

Employee
understands that he has been given a period of 21 days to review and consider
this Agreement before signing it (“Review Period”).  Employee further understands that he may use
as much of this Review Period as Employee wishes prior to signing it.  Finally, Employee acknowledges and agrees the
delivery of an executed copy of this Agreement prior to the expiration of the
Review Period waives any remaining portion of the Review Period.

IX.                                Confidential
Information

“Confidential
Information” for the purposes of this Agreement means any information that
Employee learned or developed during the course of his employment with the
Company that derives independent economic value from being not generally known
or readily ascertainable by other persons who could obtain economic value from
its disclosure or use, and includes (without limitation) information related to
business strategy, communications, franchising, leasing, accounting, passwords,
methods of accessing the Company’s information systems, trade secrets, customer
lists, vendor lists, finances, pricing, research and development, management
systems, and sales and marketing techniques.

Employee
agrees not to directly or indirectly use or disclose any Confidential
Information for the benefit of anyone other than the Company both during the
Transitional Period and at all times thereafter.  Employee recognizes that Confidential
Information constitutes a valuable asset of the Company and agrees to act in
such a manner as to prevent its disclosure and use by any person unless such
use is for the benefit of the Company. 
Employee’s obligations under this paragraph are unconditional and will
not be excused by any conduct by the Company, except prior voluntary disclosure
by the Company of the information.

 3
 

 

X.                                    Consequences of
Employee Violation of Promises

If
Employee breaks his promise in this Agreement, and initiates a claim based on
claims that Employee has released, Employee will pay for all costs incurred by
the Company, or by the directors, officers, or employees of the Company,
including reasonable attorneys’ fees, in defending against Employee’s claim.

XI.                                Confidentiality of
Terms; Nondisparagement

Employee
acknowledges and agrees that the Company may be required to file this document
with the Securities and Exchange Commission (“SEC”) in connection with its
reporting obligations.  If filed with the
SEC, the Employee will have no obligation to keep the terms of this Agreement
confidential.  If this Agreement is not
filed with the SEC or otherwise made publicly available by the Company,
Employee agrees that this Agreement, and all the terms of Employee’s settlement
terms with the Company, will remain completely confidential, and that he will
share them with no one, except with governmental agencies, spouse and attorney,
either before or after he signs this Agreement, except that he may reveal the
monetary terms of the settlement to his accountants or other financial
advisors.

Employee
and Company agree with respect to one another that they will not intentionally
criticize or speak negatively about the other or the Company’s officers or
directors, or their business policies or practices, to any of their respective
past, present or future employees, customers, vendors, competitors, lenders, or
any other business entity or person. 
This section shall not apply to any testimony given in any
administrative or judicial proceeding, and shall in no way limit the parties
from communicating factual information as deemed necessary in connection with
those proceedings.

XII          Non-Admission
of Liability

By
entering into this Agreement, the Company does not admit that is has done
anything wrong.

XIII.                        Cooperation

Employee
agrees that on or before the end of the Transitional Period, he will disclose
to the Company all current critical information that may be useful to the
Company in continuing its business operations. 
Should it be necessary for Company operations, Employee further agrees
that he will respond to requests by the Company for disclosure of critical
information Employee gained while employed by the Company after the Termination
of the Transitional Period.  Such
disclosure of critical information will include disclosure of passwords, system
access, and information relating customers, franchise operations, business
plans, personnel, finances, purchase or sale arrangements, or other dealings of
the Company.  Any out of pocket expenses
that may be associated with these requests will be eligible for reimbursement
upon approval.

 4
 

 

Upon
the Company’s reasonable request, Employee agrees to make himself available to
and to cooperate with the Company respecting to any legal matters the Company
is involved in or may become involved in and with respect to which Employee may
have knowledge.  This provision is not
intended to influence, however, the content of any testimony Employee may give
in such legal matters.

XIV.        Entire Agreement

This
Agreement represents the entire agreement between Employee and the
Company.  The parties acknowledge and
agree that the Company has made no promises to Employee other than those in
this Agreement.

XV.                            Enforcement

Employee understands
that his failure to comply with the terms of this Agreement would cause the
Company irreparable harm.  Therefore,
Employee and the Company agree that, in the event of a breach or threatened
breach of this Agreement by Employee, the Company may seek an injunction
restraining such breach or obtain a decree of specific performance, without
showing or proving actual damages, until such time as a final and binding
determination is made by a court of competent jurisdiction.  Employee stipulates that a preliminary
injunction restraining such breach or ordering specific performance will be
entered by, at the sole discretion of the Company, a court, without posting any
bond or security, until such time as a final and binding determination is made
by a judge.

Dated this 25th
day of October, 2006.

	
  

  	
   

  	
  WINMARK CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
  /s/ John L. Morgan

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its

  	
   

  	
  Chief Executive Officer

  

 

ACCEPTED
AND AGREED.  By my signature below, I
acknowledge that I have been provided full opportunity to review and reflect on
the terms of this Agreement and that I fully understand and accept the terms of
this Agreement, and I represent and agree that my signature is freely,
voluntarily, and knowingly given.

Dated
this 18 day of Oct., 2006.

	
  

  	
  /s/ Stephen M. Briggs

  
	
   

  	
  Stephen M. Briggs, individually

  

 

 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]