Document:

EX-10.2

 Exhibit 10.2 

ARCTIC CAT INC. 

INDUCEMENT RESTRICTED STOCK UNIT AGREEMENT 

FOR EXECUTIVE OFFICER 

This INDUCEMENT RESTRICTED STOCK UNIT AGREEMENT (“Agreement”) made as of the 3rd day of December, 2014 between ARCTIC CAT
INC., a Minnesota corporation (the “Company”), and Christopher T. Metz, an employee of the Company or one or more of its subsidiaries (“Employee”). 

WHEREAS, the Company desires, by granting Employee certain restricted stock units of the Company, as hereinafter provided, to enable
the Company and its Subsidiaries to induce the employment of Employee and to enable such individual to participate in the long-term success and growth of the Company by giving him a proprietary interest in the Company, thereby aligning the interests
of such person with the Company’s shareholders. 
 NOW, THEREFORE, in consideration of the mutual covenants hereinafter set
forth and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto have agreed, and do hereby agree, as follows: 

1. Award. 

a. Restricted Stock Units. Pursuant to this Agreement,
[            ] Restricted Stock Units (“RSUs”), each RSU representing the right to receive one Share, shall be issued as hereinafter provided in Employee’s name subject to
certain restrictions thereon. 
 b. Issuance of RSUs. The RSUs shall be issued upon acceptance hereof by Employee and
upon satisfaction of the conditions of this Agreement. 
 2. Rights of Employee with Respect to the Restricted Stock Units. 

a. No Shareholder Rights. The RSUs granted pursuant to this Agreement do not and shall not entitle the Employee to any
rights of a holder of Shares. The rights of Employee with respect to the RSUs shall remain forfeitable at all times prior to the date on which such rights become vested and the restrictions with respect to the RSUs lapse, in accordance with
Section 3. 
 b. Conversion of Restricted Stock Units; Issuance of Shares. No Shares shall be issued to Employee
prior to the date on which the RSUs vest and the restrictions with respect to the RSUs lapse, in accordance with Section 3. Neither this Section 2(b) nor any action taken pursuant to or in accordance with this Section 2(b) shall be
construed to create a trust of any kind. After all restrictions with respect to RSUs lapse pursuant to Section 3, the Company shall cause to be issued no later than 2.5 months after the end of the Company’s fiscal year (subject to
Section 5), in payment for such RSUs that number of Shares equal to the number of RSUs with respect to which the restrictions have lapsed. 

 3. Restrictions on RSUs. Employee hereby accepts the RSUs and agrees with respect thereto
as follows: 
 a. Forfeiture Restrictions. The RSUs may not be sold, assigned, pledged, exchanged, hypothecated or
otherwise transferred, encumbered or disposed of, and in the event of termination of Employee’s employment with the Company or employing subsidiary for Cause (as defined in Employee’s Employment Agreement (the “Employment
Agreement”) or by Employee for any reason other than death, Disability (as defined in the Employment Agreement) or for Good Reason (as defined in the Employment Agreement) then, except as otherwise provided in the last sentence of
Section 3(b) of this Agreement, Employee shall, for no consideration, forfeit to the Company all RSUs to the extent then subject to the Forfeiture Restrictions. The Committee may establish procedures as it deems appropriate for Employee to
designate a Person or Persons, as beneficiary or beneficiaries, to exercise the rights of Employee and receive any property distributable with respect to the RSUs in the event of Employee’s death. The RSUs and rights thereunder shall be
exercisable during the Employee’s lifetime only by the Employee (except as provided herein) or, if permissible under applicable law, by the Employee’s guardian or legal representative. The RSUs and rights thereunder may not be pledged,
alienated, attached or otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance thereof shall be void and unenforceable against the Company or any Subsidiary. 

The prohibition against transfer and the obligation to forfeit and surrender RSUs to the Company upon termination of employment
are herein referred to as “Forfeiture Restrictions.” The Forfeiture Restrictions shall be binding upon and enforceable against any purported transferee of RSUs. 

b. Lapse of Forfeiture Restrictions. The Forfeiture Restrictions shall lapse as to thirty-three and one-third percent
(33 1/3%) of the RSUs on each of the first three anniversaries of the date of this Agreement provided that Employee has been continuously employed by the Company from the date of this Agreement through the lapse date. Notwithstanding the foregoing,
the Forfeiture Restrictions shall lapse as to all of the RSUs on the earlier of (i) the occurrence of a Change in Control (as defined in the Employment Agreement), or (ii) the date Employee’s employment with the Company is terminated
by reason of death, Disability or in the event of the Employee’s termination by the Company without Cause or resignation by Employee for Good Reason. Lapse of Forfeiture Restrictions under (i) or (ii) of this Section 3(b) shall
be allowed only to the extent that the applicable Change in Control or termination events are at least as restrictive as the definitions set forth in Section 409A of the Code and the Treasury Regulations relating thereto. In the event
Employee’s employment by the Company and any Subsidiary or Parent Corporation is terminated for Cause or Employee resigns without Good Reason, no further vesting shall occur and all RSUs then held by Employee that have not vested as of such
termination or resignation will be terminated and forfeited to the Company for no consideration. In the event Employee’s employment is terminated by reason of resignation for Good Reason, the Committee which administers this Agreement or its
delegate, as appropriate, may, in the Committee’s or such delegate’s sole discretion, approve the lapse of Forfeiture Restrictions as to any or all RSUs still subject to such Restrictions, such lapse to be effective on the date of such
approval or Employee’s termination date, if later. 

  
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 4. Tax Matters. 

a. Election to Defer Distribution. If the distribution of Shares upon lapsing of Forfeiture Restrictions applicable to
the RSUs granted by this Agreement is subject to U.S. tax law, Employee may elect to defer the distribution of some or all of such Shares. Such deferral election shall be in accordance with the rules as established by the Committee and in general
must be received in writing by the Company no later than the last day of the fiscal year preceding the fiscal year in which the RSU is granted. 

b. Payment of Tax. To the extent that the receipt of the RSUs or the lapse of any Forfeiture Restrictions results in
income to Employee for federal, state, local or foreign income tax laws or regulations, Employee shall deliver to the Company at the time of such receipt or lapse, as the case may be, such amount of money or Shares with a fair market value equal to
the amount of such taxes, in each case as the Company may require to meet its withholding obligation under applicable tax laws or regulations (provided that the maximum amount shall not exceed the amount of the required withholding). If Employee
fails to deliver the foregoing money or Shares, the Company is authorized to withhold from any cash or Shares remuneration then or thereafter payable to Employee any tax required to be withheld by reason of such resulting compensation income. 

c. 409A Compliance. Notwithstanding anything to the contrary herein, and unless otherwise agreed by the Company and
Employee in writing, if Employee is a “specified employee,” as defined in Section 409A(a)(2)(B)(i) of the Code as of the date of any termination, payment of deferred compensation subject to Section 409A of the Code shall be made
to Employee in one lump sum no earlier than six months following the date of termination; provided, however, that any payment or portion thereof which is subject to an exemption for separation pay to specified employees as provided
under Section 409A of the Code and the relevant Treasury Regulations thereunder, or is subject to any other exemption provided under Section 409A of the Code and the relevant Treasury Regulations thereunder allowing for payment to a
specified employee prior to the date that is six months following the date of termination of employment, may be paid to Employee the later of twenty (20) days following such date of termination or the date Employee fulfills any conditions to
receipt of such payment or portion thereof (which conditions must be capable of being satisfied within two and one-half months of the date of termination). 

5. Delivery of Shares. The Company shall not be required to deliver any Shares upon vesting or lapse of restrictions of any RSUs until
the requirements of any federal or state securities laws, rules or regulations or other laws or rules (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied. Employee agrees that such
Shares will not be sold or otherwise disposed of in any manner which would constitute a violation of any applicable federal or state securities laws. Employee also agrees (i) that the certificates representing such Shares may bear such legend
or legends as the Company deems 

  
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appropriate in order to assure compliance with applicable securities laws, (ii) that the Company may refuse to register the transfer of such Shares on the stock transfer records of the
Company if such proposed transfer would in the opinion of counsel satisfactory to the Company constitute a violation of any applicable securities law and (iii) that the Company may give related instructions to its transfer agent, if any, to
stop registration of the transfer of the Shares. The Company shall not be required to deliver any Shares or other securities covered by an Award unless and until such Shares or other securities have been and continue to be admitted for trading on
the NASDAQ Exchange. 
 6. No Right to Continued Employment. Nothing in this Agreement shall confer upon the Employee any right to
continue in the employ of the Company or of any of its subsidiaries or interfere in any way with the right of the Company or any such subsidiary to terminate the employment of the Employee at any time, with or without Cause. 

7. Administration. 

a. Power and Authority of the Committee. The Agreement shall be administered by the Committee. Subject to the express
provisions of the Agreement and to applicable law, the Committee shall have full power and authority to: (i) waive any restrictions relating to the RSUs; (iii) interpret and administer the Agreement; (iv) establish, amend, suspend or
waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of these RSUs and this Agreement; (v) delegate to one or more executive officers of the Company the authority to administer
these RSUs and this Agreement or any aspect of them; and (vi) make any other determination and take any other action, prospectively or retrospectively, that the Committee deems necessary or desirable for the administration of these RSUs and
this Agreement. Unless otherwise expressly provided herein, all designations, determinations, interpretations and other decisions under or with respect to these RSUs and this Agreement shall be within the sole discretion of the Committee, may be
made at any time and shall be final, conclusive and binding upon Employee and any holder or beneficiary of the RSUs. No provision contained in this Agreement shall in any way terminate, modify or alter, or be construed or interpreted as terminating,
modifying or altering any of the powers, rights or authority vested in the Committee or, to the extent delegated, in its delegate pursuant to the terms of this Agreement or resolutions adopted in furtherance of hereof, including, without limitation,
the right to make certain determinations and elections with respect to the RSUs. 
 b. Power and Authority of the
Board. Notwithstanding anything to the contrary contained herein, the Board may, at any time and from time to time, exercise the powers and duties of the Committee hereunder without any further action of the Committee, and in that event, any
reference to Committee shall also refer to the Board. 
 8. Adjustments. In the event that the Committee shall determine that any
dividend or other distribution (whether in the form of cash, Shares, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or
exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company or any 

  
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other similar corporate transaction, equity restructuring or event affects the Shares underlying the RSUs, then the Committee shall make an appropriate adjustment that will equalize the fair
value of such Shares or RSUs before and after the transaction, restructuring or event, including but not limited to making adjustment to any or all of the number and type of Shares (or other securities or other property) subject to these RSUs. 

9. Company Authority. The existence of the RSUs herein granted shall not affect in any way the right or power of the Company or its
stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures,
preferred or prior preference stock ahead of or affecting the common stock of the Company or its rights thereof, or dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other
corporate act or proceeding, whether of a similar character or otherwise. 
 10. [Reserved] 

11. Income Tax Compliance. 

a. “Deferred Compensation” means the RSUs, to the extent it provides for the “deferral of compensation”
under a “nonqualified deferred compensation plan” (as those terms are defined under Code Section 409A) and that would be subject to the taxes specified in Code Section 409A(a)(l) if and to the extent that this Agreement does not
meet or is not operated in compliance with the requirements of Code Section 409A(a)(2), (3) and (4) and the regulations promulgated thereunder, Deferred Compensation shall not include any amount that is otherwise exempt from the
requirements of Code Section 409A and the regulations promulgated thereunder. Nothing in this Section 11 shall prohibit the Company from establishing a deferred compensation plan that allows for the deferral of salary, bonuses or other
cash-based performance awards. 
 b. “Specified Employee” means Employee, so long as he is a key employee as
described in Code Section 416(i)(l)(A)(i), (ii) and (iii) (and disregarding paragraph (5) thereof) at any time during the 12 months ending on each December 31, or such other “identification date” that applies
consistently for all plans that provide “deferred compensation” that is subject to the requirements of Code Section 409A and regulations promulgated thereunder. The Employee will be identified as a Specified Employee in accordance
with the regulations promulgated under Code Section 409A, including with respect to the spin-off or merger of the company with any other company, and such identification shall apply for the twelve (12) month period commencing on the first
day of the fourth month following the identification date. Notwithstanding the foregoing, Employee shall not be a Specified Employee unless the stock of the Company (or other member of a “controlled group of corporations” as determined
under Code Section 1563) is publicly traded on an established securities market as of the date of Employee’s “separation from service” as defined in Code Section 409A and the regulations promulgated thereunder. 

  
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 c. Except to the extent such acceleration or deferral is permitted or complies
with the requirements of Code Section 409A and the regulations promulgated thereunder, neither the Committee nor the Employee may accelerate or defer the time or schedule of any payment of, or the amount scheduled to be paid under, the RSUs to
the extent that they constitutes Deferred Compensation; provided, however, that payment shall be permitted if it is in accordance with a fixed date or schedule or on account of “separation from service,”
“disability,” “death,” “change in control” or “unforeseeable emergency” as those items are defined under Code Section 409A and the regulations promulgated thereunder. 

d. Except as specifically provided otherwise herein, the Committee may not make payment to a Specified Employee of any portion
of the RSUs that constitute Deferred Compensation earlier than six (6) months following the Employee’s “separation from service” as defined for purposes of Code Section 409A (or if earlier, upon the Specified Employee’s
death), except as permitted under Code Section 409A. Any payments that otherwise would be payable to the Specified Employee during the foregoing six (6) month period will be accumulated and payment will be delayed until the first date
after the six (6) month period. 
 e. The Committee may reform any provision in this Agreement to the extent the RSUs
are intended to be exempt from Code Section 409A to maintain to the maximum extent practicable the original intent of the applicable provisions without violating the provisions of Code Section 409A and to preserve the economic benefits
intended by the Award. 
 12. Amendment. The Board and the Committee may amend this Agreement, but no amendment shall be made
(i) which would impair the rights or economic benefit of Employee with respect to the RSUs, without Employee’s consent, or (ii) which without the approval of the shareholders of the Company would cause the Agreement to no longer
comply with Rule 16b-3 or any other regulatory requirements. Further, the Board and the Committee, with the Employee’s consent, may correct any defect, supply any omission or reconcile any inconsistency in the Agreement in the manner and to the
extent it shall deem desirable to implement or maintain the effectiveness of the RSUs or the Agreement. 
 13. Definitions.
Capitalized terms not defined herein shall have the meaning set forth in Employment Agreement, unless the context clearly requires otherwise. The following terms shall have the meanings set forth below: 

a. “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any regulations promulgated
thereunder. 
 b. “Committee” shall mean the Compensation and Human Resources Committee of the Board of Directors
of the Company (each a “Director” and collectively the “Board”) or any other committee of the Board designated by the Board to administer this Agreement or any portion hereof. 

  
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 c. “Deferred Compensation” shall have the meaning set forth in
Section 11(a) of this Agreement. 
 d. “Parent Corporation” shall mean any corporation (other than the
Company) in an unbroken chain of corporations ending with the Company if each of the corporations (other than the Company) owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations
in the chain. 
 e. “Person” shall mean any individual or entity, including a corporation, partnership, limited
liability company, association, joint venture or trust. 
 f. “Rule 16b-3” shall mean Rule 16b-3 promulgated by the
Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, or any successor rule or regulation. 

g. “Share” or “Shares” shall mean the common stock, $.01 par value per share, of the Company (the
“Common Stock”) or such other securities or property as may become subject to Awards pursuant to an adjustment made under Section 8 of this Agreement. 

h. “Specified Employee” shall have the meaning set forth in Section 11(b) hereof. 

i. “Subsidiary” shall mean any corporation (other than the Company) in an unbroken chain of corporations beginning
with the Company if each of the corporations (other than the last corporation in the unbroken chain) owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in the chain. 

14. General Provisions. 

a. Governing Law. The validity, construction and effect of these RSUs and this Agreement, and any rules and regulations
relating to these RSUs and this Agreement, shall be determined in accordance with the internal laws, and not the law of conflicts, of the State of Minnesota. 

b. Severability. If any provision of these RSUs or this Agreement is or becomes or is deemed to be invalid, illegal or
unenforceable in any jurisdiction or would disqualify these RSUs or this Agreement under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed
or deemed amended without, in the determination of the Committee, materially altering the purpose or intent of these RSUs or this Agreement, such provision shall be stricken as to such jurisdiction or RSUs, and the remainder of these RSUs or this
Agreement shall remain in full force and effect. 
 c. No Fractional Shares. No fractional Shares shall be issued or
delivered pursuant to these RSUs or this Agreement, and the Committee shall determine whether cash shall be paid in lieu of any fractional Shares or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise
eliminated. 

  
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 d. Headings. Headings are given to the Sections and subsections of this
Agreement solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of this Agreement or any provision hereof. 

e. No Trust or Fund Created. The Agreement is intended to constitute an “unfunded” plan for incentive and
deferred compensation. Neither these RSUs nor this Agreement shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Subsidiary and Employee or any other Person. To the
extent that any Person acquires a right to receive payments from the Company or any Subsidiary pursuant to the RSUs, such right shall be no greater than the right of any unsecured general creditor of the Company or any Subsidiary. In its sole
discretion, the Committee may authorize the creation of trusts or other arrangements to meet the obligations created hereunder to deliver Shares or payments in lieu of or with respect to the RSUs granted hereunder; provided, however,
that the existence of such trusts or other arrangements is consistent with the unfunded status of the Agreement. 
 f.
Disputes. As a condition of the granting of the RSUs herein granted, Employee agrees, for Employee and Employee’s personal representatives, that any dispute or disagreement which may arise under or as a result of or pursuant to this RSU
Agreement shall be determined by the Board of Directors of the Company, in its sole discretion, and that any interpretation by the Board of the terms of this RSU Agreement shall be final, binding and conclusive; provided, however, that any dispute
over the reason for the Employee’s termination of employment shall be determined in accordance with the provisions of the Employment Agreement. 

g. Binding Effect. This RSU Agreement shall be binding upon the heirs, executors, administrators and successors of the
parties hereto. 
 [Signature Page Follows] 

  
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 IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an
officer thereunto duly authorized, and Employee has executed this Agreement, all as of the date first above written. 
  

			
	ARCTIC CAT INC.
		
	By:	 	  

		 	 Christopher A. Twomey
 Its Chairman of the
Board

		
	By:	 	  

		 	Christopher T. Metz, EmployeeExhibit 10.1

 

Master Retailer Agreement

 

This Master Retailer Agreement (this “Agreement”) is made effective as of January 1, 2014 (the “Effective Date”), by and between Tempur-Pedic North America, LLC, a Delaware limited liability company (“Vendor”), and Mattress Firm, Inc., a Delaware corporation (“Retailer”).

 

WHEREAS, Retailer is engaged in the retail sale of mattresses, bedding and related products through physical store locations and online (the “Business”); and

 

WHEREAS, Retailer desires to sell and offer for sale one or more products manufactured by or for Vendor and purchased directly by Retailer from Vendor (collectively, the “Products”) in the operation of the Business;

 

In consideration of the mutual covenants and promises of the parties set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.              Authorized Retailer.  Subject to the terms and conditions of this Agreement and Retailer’s compliance with Vendor’s Advertising, Website and Digital Marketing Requirements, that document titled “Retailer Agreement Amendment A, Retail Selling on the Internet” and the Tempur-Pedic® Brand Standards Manual, as may be revised by Vendor from time to time and which are incorporated herein by reference, Vendor hereby appoints Retailer, and Retailer hereby accepts such appointment, as a non-exclusive authorized retailer of the Products for the term of this Agreement.

 

2.              Business Development Programs.  From time to time during the term of this Agreement, Vendor may agree to establish certain business development programs available to authorized retailers on an annual basis, including Retailer (each, a “Business Development Program”).  Vendor anticipates that these programs may be available in the future, although the terms of such programs may change over time in form and scope, or be eliminated depending on internal and external factors.  Participation in any such program is subject to Retailer’s compliance with the terms and conditions of this Agreement.

 

3.              Products.

 

a.              From time to time during the term of this Agreement, Retailer may sell or offer for sale one or more of the Products at one or more physical store locations operated by Retailer or one or more websites operated by Retailer.  Retailer has no obligation to sell any specified amount of the Products nor any obligation to offer the Products for sale in any particular store operated by Retailer.

b.              Retailer and Vendor shall mutually agree upon the Products available for sale through Retailer from time to time hereunder.  Retailer shall have the right to reject for any reason any Product line proposed to be offered.

 

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c.               In any store offering Products for sale, Retailer agrees to purchase and display a sufficient number of models to provide consumers the opportunity to see and feel the differences between Vendor’s models and collections.

 

d.              Vendor recommends that Retailer carry at all times at least nine (9) mattress sets, two (2) with TEMPUR® Advanced Ergo SystemTM bases, one (1) with a TEMPUR® Ergo SystemTM base and no less than seven (7) pillow styles; provided however, Retailer shall not be required to maintain a minimum inventory of Tempur-Pedic® products.

 

e.               Retailer must display and sell Tempur-Pedic® mattresses only with Tempur-Pedic® foundations and adjustable bed bases, and not with other manufacturers’ foundations and/or adjustable bed bases.

 

f.                Retailer shall utilize the most current displays and POS materials provided by Vendor which, except as specified herein or in any Business Development Program, remain the property of Vendor.

 

g.               Retailer will not use any Tempur-Pedic®-specific displays provided by Vendor in conjunction with the sale of any products other than Tempur-Pedic® products.

 

h.              From time to time, Retailer and Vendor may, but are not required, to develop and identify Products that may be sold exclusively through Retailer and not available for retail sale to through any other person or entity, including Vendor or other authorized retailers of Vendor.

 

i.                  Vendor reserves the right: (i) to change the design of or modify any Product; (ii) to discontinue any Product; and (iii) to add new and additional products to its product lines, which products shall constitute Products for purposes of this Agreement.  Notwithstanding the foregoing, without prior written notice to Retailer, Vendor shall not modify any Product, including its contents, if such modification would render false or inaccurate any product description of such Product provided to Retailer or any of Retailer’s consumers.

 

4.              Customers.  Retailer will not sell or ship Products to any person or entity other than retail consumers (end-users of the product); provided that the foregoing shall not prohibit Retailer from selling or shipping Products to hospitals, charities, shelters or government entities or participating in government programs, but Retailer agrees to defend, indemnify and hold harmless Vendor from any claims related to any sale or shipment to any entities other than retail customers, and Retailer shall be solely responsible for complying with all state, local or federal laws applicable to such shipments and programs.  Furthermore, Retailer shall not sell any Products for delivery outside the United States of America.

 

5.              Pricing.  Retailer shall purchase the Products from Vendor at prices agreed to by Retailer and Vendor in writing from time to time, and, in accordance with the then current billing and credit practices between the parties, shall pay Vendor for all Products it purchases from Vendor on such terms and conditions specified by Vendor’s terms of sale applicable to such transaction.  Vendor may at any time apply and offset any and all amounts which are due and owing to Retailer against any financial obligations of

 

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Retailer to Vendor and Retailer may at any time apply and offset any and all amounts which are due and owing to Vendor against any financial obligations of Vendor to Retailer.

 

6.              Order Processing.  As needed from time to time, Retailer shall order Products from Vendor by delivering written notice to Vendor specifying (i) the type and quantity of Products ordered, (ii) the location(s) to which such Products shall be delivered and (iii) the requested date(s) of delivery of such Products (such notice is referred to as a “Product Order”).  Vendor shall deliver Products as directed in the Product Order and shall be responsible for arranging shipment of such Products unless otherwise requested by Retailer.  Risk and title of Products shall pass to Retailer FOB shipping point, subject to Section 14 of this Agreement.  Vendor shall deliver Products within a designated period of time after the Product Order placement unless otherwise agreed by Retailer in writing.

 

7.              Payment Terms.  Vendor shall invoice Retailer within five days after shipment of Products purchased by Retailer.  Retailer shall pay the amount set forth on such invoice, unless disputed in good faith, within 30 days after receipt thereof. The parties acknowledge that the payment terms are “net 30 days”.

 

8.              Term; Termination.

 

a.              This Agreement will commence on the Effective Date and continue until terminated by either party in accordance with this Section 8.  Sections 8, 14, 15, 19, 20, 21, 22, and 24-32 shall survive any termination of this Agreement.

b.              Except as otherwise prohibited by applicable law, this Agreement is terminable at the will of either party at any time, with or without breach, default or cause, upon written notice.

c.               Upon termination:

 

i.                  Retailer shall promptly pay to Vendor all sums due and payable for the Products purchased by Retailer prior to the date of termination, as such amount may be offset by any outstanding merchandise credit memorandum;

ii.               Vendor shall remit to Retailer the balance of any merchandise credit memorandum in immediately available funds within 30 days of the date of termination;

iii.            Retailer shall promptly cease and desist use of all Tempur-Pedic® trademarks, tradenames, images, promotional materials and shall cease and desist holding itself out in any way as an authorized Tempur-Pedic® retailer, provided that, unless Vendor repurchases Retailer’s inventory of the Products (including floor samples) at fair value as specified in clause (iv) below, Retailer shall have the right to sell such Products and, solely in connection with the sale of such Products, use the applicable model

 

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name, and brand name, which may contain intellectual property of Vendor; and

iv.           Vendor may, at its sole discretion and on such reasonable terms as it may specify, repurchase some or all of Retailer’s Tempur-Pedic® inventory at fair value. In the event Vendor exercises its option to repurchase any or all of Retailer’s inventory, Retailer shall cooperate fully in tendering such inventory to Vendor at the time and in the manner specified by Vendor. To the extent that any such inventory is old, discontinued, damaged or otherwise not in salable condition as new product, Vendor shall have the option to purchase such product at a reasonable discount as mutually agreed upon by the parties, provided, however, that if the parties are unable to agree, then such amount will be determined in accordance with Vendor’s then current practices.  Retailer shall have no right to seek compensation for lost profits or other damages as a result of termination.

 

d.              Notwithstanding Section 8.c.iii, Retailer shall have the right at any time and from time to time after the termination of this Agreement to sell Products that are returned to Retailer and, solely in connection with the sale of such Products, use the applicable model name and brand name, which may contain intellectual property of Vendor.

 

9.              Subsidies /Integrated Advertising Allowance.

 

a.              Any Subsidies/Integrated Advertising Allowances which may be agreed to by the parties from time to time shall be set forth in a Business Development Program document.

 

10.       This Section intentionally omitted by the parties.

 

11.       This Section intentionally omitted by the parties.

 

12.       Floor Sample Discounts.  Retailer may purchase Products to be used as floor samples at discounts off of the Prices (the “Discounted Prices”), as mutually agreed by the parties from time to time.  All replacement Products ordered for use as floor samples shall also be purchased at such Discounted Prices; provided that Retailer may not replace any such floor sample more than once during a calendar year at the Discounted Price.  Notwithstanding the foregoing, Vendor may from time to time determine that the floor samples on Retailer’s retail floors should be changed more frequently, in which case the Discounted Prices will apply to such additional replacement samples.  Retailer shall specify in the Product Order for such Products that such Products will be used as floor samples.

 

13.       Volume Rebate Funds.  Accrual and payment of volume rebate funds, if any, shall be governed by the terms set forth in an applicable Business Development Program.

 

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14.       Warranty; Return Allowance.

 

a.              The only warranties applicable to Tempur-Pedic® products are those written, limited warranties issued by Vendor to consumers, as may be revised from time to time. Except for its express limited obligations under those written warranties, Vendor assumes no other obligation or liability in connection with the sale of any Tempur-Pedic® product by Retailer. Retailer is not authorized to make any warranty to customers beyond or in addition to the terms of Vendor’s written warranties. Retailer shall deliver a copy of Vendor’s applicable written warranty to each purchaser of a Tempur-Pedic® product at the time of delivery. ANY AND ALL IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY AND/OR FITNESS FOR PARTICULAR PURPOSE ARE HEREBY EXPRESSLY DISCLAIMED.

b.              Vendor hereby warrants to Retailer that all Products purchased by Retailer, whether for use as floor samples, for resale or otherwise, from Vendor shall comply with Vendor’s specifications for such Product.  This warranty is in addition to any standard product warranty offered by Vendor to its customers.

c.               Vendor shall provide credit to Retailer in a mutually agreed upon amount, which shall be the limit of Vendor’s responsibility for such defective or returned Products except as set forth in Section 14(e).  Retailer shall be responsible for either issuing a refund to the customer or making a Product replacement otherwise agreed upon by Retailer and such customer.  The credit shall be issued in accordance with Vendor’s return policies.  Vendor has the right to pick up or take back any defective or returned Products unless it instructs Retailer to otherwise dispose of such Products.

d.              Retailer has the right to reject defective Products or misdeliveries (including in respect of floor samples) at the point of receipt, and such returns will be taken back by Vendor.  Serial failures and company recalls will be excluded from any Return incentive program included in a Business Development Program if agreed upon by the parties, and such Products shall accepted for return by Vendor.  In the case of Products rejected at the point of receipt or returned in connection with serial failures or company recalls, Retailer shall receive a merchandise credit memorandum in an amount equal to 100% of the Price paid by Retailer for such returned Products.

e.               Retailer has the right to immediately discontinue offering any Product for sale if the rate of return for such Product equals or exceeds an agreed upon percentage following an agreed upon period of time. In such event, Vendor shall take back, at cost plus delivery charges, all inventory of such Product held by Retailer, including floor samples.

f.                In the event that Retailer reasonably determines Products fail to conform to Vendor’s limited written warranty or Vendor’s warranty specified in Section 14.b, Retailer shall notify Vendor in writing of such defects or failures.  Promptly following such written notice, Vendor shall take back, at Vendor’s expense, all Products of the same line as the defective or non-conforming Products that

 

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remain in Retailer’s inventory, and Retailer shall not be obligated to take any further delivery of such Product line.

 

15.       Brand Standards; Minimum Advertised Price.

 

a.              By Retailer’s execution of this Agreement, receipt of email confirmation, ordering and/or by purchasing Tempur-Pedic® products, Retailer agrees to abide by this Agreement, the Advertising, Website and Digital Marketing Requirements and the Tempur-Pedic® Brand Standards Manual, incorporated herein by reference, as may be revised by Vendor from time to time.

b.              Retailer will keep all displayed floor samples well-maintained and clean.

c.               Retailer will use the most current displays and point-of-sale materials provided by Vendor.

d.              Retailer acknowledges that Vendor has a Unilateral Pricing Policy in place, and, Vendor has provided Retailer with a current copy of such Policy, and undertakes to provide Retailer an updated copy of such Unilateral Pricing Policy if it is revised in the future.

 

16.       Product Details; Trademark License.

 

In connection with Products purchased from Vendor during the term of this Agreement:

 

a.              For each Product, Vendor shall provide to Retailer a full description of the features and benefits of each such Product, a complete list of such Product’s specifications and a picture for display of such Product.  Retailer shall incorporate such descriptions and pictures on the website(s) in connection with each Product offered online and, as applicable, into any print advertisement.  Retailer shall not materially alter any such description without Vendor’s prior written consent.

b.              Vendor may, from time to time, reasonably request changes or revisions to a website or any pages of a website that is controlled by Retailer and which references, depicts or describes the Products or Retailer’s relationship to Vendor, which requested changes or revisions shall be considered by Retailer in good faith and, unless unreasonable, incorporated promptly in the applicable website.

c.               Vendor hereby grants to Retailer a non-exclusive, royalty-free license to use such descriptions and pictures in connection with the authorized sale and promotion of Products during the term of this Agreement.  Additionally, Vendor grants to Retailer a non-exclusive, royalty-free license to use Vendor’s trademarks, trade names, images and Vendor-provided promotional materials in connection with the authorized sale and promotion of Products during the term of this Agreement and, in the limited capacity specified in Section 8.d., from time to time.

 

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17.       Store Support.  From time to time, at Vendor’s cost, Vendor may provide Retailer with the store support identified in an applicable Business Development Program.

 

18.       Training.  Vendor shall provide Product training to Retailer’s sales associates prior to the roll-out of any new Products, as well as from time to time, as reasonably requested by Retailer.

 

19.       Indemnification.

 

a.              Vendor shall indemnify and hold harmless Retailer and its officers, directors, shareholders, members, partners and employees from and against any and all claims, actions, proceedings, judgments and other liabilities and expenses (including reasonable attorneys’ fees and costs) of any nature arising out of or relating to:

 

i.                  the authorized use by Retailer of Vendor’s trademarks, trade names, images and Vendor-provided promotional materials in connection with the authorized sale and promotion of Products;

ii.               any claims of infringement of a third party’s intellectual property rights by Products or technology or materials contained therein;

iii.            the use of promotional materials and other information provided by Vendor, including in training sessions;

iv.           any material breach of this Agreement by Vendor; or

v.              Product liability claims.

 

Retailer will notify Vendor as soon as practicable of any claim brought against Retailer.  If Retailer declines Vendor’s tender of a reasonably competent defense and Retailer elects to proceed with its own counsel, Retailer shall be responsible for its own costs of defense, including costs and attorney’s fees.

 

b.              Retailer shall indemnify and hold harmless Vendor and its officers, directors, shareholders, members, partners and employees from and against any and all claims, actions, proceedings, judgments and other liabilities and expenses (including reasonable attorneys’ fees and costs) of any nature arising out of or relating to:

 

i.                  Retailer’s unauthorized use of Vendor’s trademarks, trade names, images and Vendor-provided promotional materials in connection with the authorized sale and promotion of Products;

ii.               negligent acts or omissions by Retailer, its employees, subcontractors and/or representatives relating to the Products including, without limitation, the marketing and sale, handling, display, storage or delivery thereof; and/or

iii.            customer warranty claims for comfort exchanges; or

iv.           negligent acts or omissions including those resulting in a breach of any material or essential provision of this Agreement by Retailer.

 

Vendor will notify Retailer as soon as practicable of any claim brought against Vendor.  If Vendor declines Retailer’s tender of a reasonably competent defense and Vendor

 

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elects to proceed with its own counsel, Vendor shall be responsible for its own costs of defense, including costs and attorney’s fees.

 

20.       Expenses.  Except as otherwise expressly agreed herein, each party will each bear their own costs and expenses (including legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby.

 

21.       Relationship of the Parties.  Vendor and Retailer are independent contractors and neither shall represent itself as having any power to bind the other or to assume or to create any obligation or responsibility, express or implied, on behalf of the other party to this agreement. Nothing contained in this Agreement shall be deemed to establish a relationship of principal and agent between Vendor and Retailer, nor any of their agents or employees for any purpose whatsoever. This Agreement shall not be construed as constituting Vendor and Retailer as partners, or to create any other form of legal association or arrangement which would impose liability upon one party for the act or failure to act of any other party.

 

22.       Certain Undertakings.

 

a.              Retailer is not an agent, franchisee or partner of Vendor and agrees not to hold itself out as such.  Retailer further agrees that it will not lead the public or its customers to conclude through its acts, omissions, store décor, employee uniforms, use of the Tempur-Pedic® products, trade dress or trademarks, etc., that Retailer is affiliated with or is, in fact, Vendor or that its retail locations are owned by Vendor. Retailer has not received or paid any fee for the right to become an authorized Tempur-Pedic® Retailer. Although Vendor may, on occasion, refer to retailers in the spirit of cooperation as its “retail partners,” Retailer acknowledges it has no legal partnership or fiduciary relationship with Vendor.

b.              In the event Retailer closes a store or stores, it will immediately remove all interior/exterior Tempur-Pedic® signage, point of purchase materials and any other Tempur-Pedic® trade dress or trademarks from the closed stores.

c.               Retailer will not issue a press release regarding or referring to Vendor or its relationship with Vendor without Vendor’s consent and prior review and input.

d.

 

23.       Representations and Warranties.  Each party hereby represents and warrants to the other party as follows:

 

a.              Such party is duly organized, validly exists and is in good standing under the laws of its jurisdiction of organization.

b.              Such party is authorized to execute and perform this Agreement and any applicable Business Development Program established hereunder from time to time.

 

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c.               Such party has had the opportunity to retain independent counsel regarding its obligations and commitments hereunder.

d.              The performance of this Agreement or any Business Development Program established hereunder by such party will not conflict with or violate any material agreement, arrangement or commitment, whether written or oral, with any third party.

 

24.       Confidentiality.  During the term of this Agreement and for a period of five years after its expiration or termination, each party agrees to keep confidential and not to use or to disclose to any third party the terms of this Agreement and any Business Development Program established hereunder, any sales information, documents, files, trademarks, contracts, drawings, data, computer programs, specifications, processes, designs, formulas, techniques, methods, creative ideas, inventions, confidential information, proprietary information and trade secrets concerning the products or services of the other party, and any other information which if not otherwise described above, is of such a nature that a reasonable person would believe it to be confidential.  Notwithstanding the foregoing, a party may disclose confidential information to the extent required by applicable law, securities regulation or subpoena.

 

25.       Non-Solicitation.  Each party hereby covenants and agrees that during the term of this Agreement, and for a period of one year thereafter, the parties shall not directly or indirectly solicit, hire or otherwise retain or engage, whether as an employee, independent contractor or otherwise, any employee or other personnel of the other party without first gaining permission from the other party. If either party hires an employee from the other, the hiring party shall pay a fee of $10,000 to the other party.  Provided, however, this prohibition shall not apply to any offers of employment which result from a general solicitation for employment, including without limitation, through the Internet, newspapers, magazines and radio.

 

26.       Notices.  All notices and other communications under this Agreement must be delivered in writing and shall be deemed to have been given when (i) delivered by hand or (ii) one (1) day after deposit thereof for overnight delivery with a nationally recognized overnight delivery service (receipt requested) to the appropriate address as set forth below (or to such other address as a party may designate by notice to the other parties):

 

Retailer:                                                  Mattress Firm, Inc.

5815 Gulf Freeway

Houston, Texas 77023

 

Vendor:                                                    Tempur-Pedic North America LLC

1000 Tempur Way

Lexington, KY  40511

 

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27.       Governing Law.  This Agreement shall be governed by the laws of the state of Delaware without giving effect to the conflicts of laws principles thereof.  Any and all disputes between Retailer and Vendor arising out of or relating to this Agreement, excluding any claim alleging misuse, passing off, misappropriation, or infringement of any trade name, trade mark or other intellectual property or for breach of confidentiality, will first be submitted to mediation for resolution prior to filing a lawsuit.  Any other dispute (or disputes continuing after good faith efforts at mediation) shall be litigated in the state or federal courts located in the State of Texas to whose exclusive jurisdiction the parties hereby consent. For purposes of establishing jurisdiction in Texas under this Agreement, each party hereby waives, to the fullest extent permitted by applicable law, any claim that:  (i) it is not personally subject to the jurisdiction of such court; (ii) it is immune from any legal process with respect to it or its property; and (iii) any such suit, action or proceeding is brought in an inconvenient forum.

 

28.       Amendment; Assignment.  Except as expressly set forth herein, this Agreement may be amended or modified only by written agreement signed by both parties.  Neither party may assign this Agreement without the prior written consent of the other party, except that either party may assign this Agreement to an affiliate without the other party’s prior written consent.  The merger or change of control of either party shall not constitute an assignment of this Agreement to the surviving entity or successor in violation of this Section 28.

 

29.       Counterparts.  This Agreement may be executed in counterparts, each of which is deemed an original, but all of which together shall constitute one and the same agreement. This Agreement may be executed or delivered by electronic or facsimile means, and electronic or facsimile copies of executed signature pages shall be binding as originals.

 

30.       Waiver.  No waiver of any term or condition of this Agreement shall be effective or binding unless such waiver is in writing and is signed by the waiving party, nor shall this Agreement be changed, modified, discharged or terminated other than in accordance with its terms, in whole or in part, except by a writing signed by both parties. Waiver by any party of any term, provision or condition of this Agreement shall not be construed to be a waiver of any other term, provision or condition nor shall such waiver be deemed a subsequent waiver of the same term, provision or condition.

 

31.       Severability.  The provisions of this Agreement are fully severable and the invalidity or unenforceability of any provision of this Agreement shall in no way affect the validity or enforceability of any other provision hereof.

 

32.       Entire Agreement.  This Agreement, any applicable Business Development Program(s) then in effect, if any, and any other policies or terms and conditions referenced in any such document constitute the entire agreement between the parties and sets forth all of the representations, warranties, promises, covenants, agreements, conditions, and

 

10

 

undertakings between the parties hereto with respect to the subject matter hereof, and supersede all prior and contemporaneous agreements and understandings, inducements or conditions, express or implied, oral or written, including, without limitation, that certain Retailer Agreement dated March 5, 2012 between the parties.

 

[Remainder of Page Intentionally Left Blank.]

 

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IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first set forth above.

 

 

	
Tempur-Pedic North   America, LLC
    	
 
    	
Mattress Firm, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Richard Anderson
    	
 
    	
By: 
    	
/s/ Craig McAndrews
    
	
Name:
    	
Richard Anderson
    	
 
    	
Name: 
    	
Craig McAndrews
    
	
Title:
    	
President
    	
 
    	
Title: 
    	
EVP of Merchandising
    
	
Date:
    	
November 18, 2014
    	
 
    	
Date: 
    	
November 24, 2014
    

 

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