Document:

a10aamendmentno4toablcre

                                                                EXECUTION VERSION                                                                                                                                                                                                       AMENDMENT NO. 4 TO CREDIT AGREEMENT                              THIS AMENDMENT NO. 4 TO CREDIT AGREEMENT (this “Amendment”), dated as  of September 21, 2018, is entered into by and among Winnebago Industries, Inc., an Iowa corporation  (the  “Company”),  Winnebago  of  Indiana,  LLC,  an  Iowa  limited  liability  company  (“Winnebago  of  Indiana”), Grand Design RV, LLC, an Indiana limited liability company (“Grand Design”; the Company,  Winnebago of Indiana and Grand Design are collectively referred to herein as the “Borrowers”), the other  Loan Parties party hereto, the financial institutions party hereto as Lenders, and JPMorgan Chase Bank,  N.A., as Administrative Agent (the “Administrative Agent”).  Capitalized terms used but not otherwise  defined herein shall have the meanings given to them in the Credit Agreement referenced below.                                        WITNESSETH                WHEREAS, the Borrowers, the other Loan Parties, the financial institutions from time to  time party thereto as Lenders (collectively, the “Lenders”) and the Administrative Agent are parties to a  Credit  Agreement,  dated  as  of  November  8,  2016  (as  previously  amended,  supplemented  or  otherwise  modified, the “Credit Agreement”);                WHEREAS,  the  Borrowers  have  requested  that  the  Lenders  and  the Administrative  Agent agree to certain amendments to the Credit Agreement; and                WHEREAS, the Lenders party hereto and the Administrative Agent have agreed to such  amendments on the terms and conditions set forth herein;                 NOW,  THEREFORE,  in  consideration  of  the  premises  set  forth  above, the terms and  conditions  contained  herein,  and  other  good  and  valuable  consideration,  the  receipt  and  sufficiency  of  which are hereby acknowledged, the Borrowers, the other Loan Parties party hereto, the Lenders party  hereto and the Administrative Agent hereby agree as follows:                 Section 1.   Amendments  to  Credit  Agreement.  Effective  as  of  the  date  of  satisfaction of the conditions precedent set forth in Section 2 of this Amendment, the parties hereto agree  that the Credit Agreement is amended as follows:          (a)   Each  Lender  hereby  agrees  that,  subject  to  the  other  terms  set forth  in  the  Loan  Documents  (including,  without  limitation,  Sections  2.09  and  9.04  of  the  Credit  Agreement),  its  Commitment shall be increased to the amount set forth opposite its name in the following table:                                      Lender                      Commitment                JPMorgan Chase Bank, N.A.               $165,000,000.00          (b)   Section  1.01  of  the  Credit  Agreement  is  hereby  amended  to  add  the  following  new  definition thereto in the appropriate alphabetical order:                       “Amendment No. 4 Effective Date” means September 21, 2018.                               (c)    The  definition  of  “Aggregate  Commitment”  set  forth  in  Section  1.01  of  the  Credit  Agreement is hereby amended to amend and restate the final sentence thereof in its entirety to read as  follows:                                              1 US-DOCS\102227289.4  

 

                   Subject  to  the  other  terms  set  forth  herein,  as  of  the  Amendment  No.  4              Effective Date, the Aggregate Commitment is $165,000,000.          (d)    The definition of “FCCR Test Period” set forth in Section 1.01 of the Credit Agreement  is  hereby  amended  to  replace  the  figure  “$12,500,000”  with  the figure  “$16,500,000”  each  time  such  figure appears therein.            (e)   The  definition  of  “Monthly  Reporting  Period”  set  forth  in  Section  1.01  of  the  Credit  Agreement is hereby amended to replace the figure “$40,000,000” with the figure “$50,000,000”.          (f)   The definition of “Payment Condition” set forth in Section 1.01 of the Credit Agreement  is hereby amended to (i) replace the figure “$25,000,000” set forth therein with the figure “$33,000,000”  and (ii) replace the figure “$18,750,000” set forth therein with the figure “$24,750,000.”            (g)   The  definition  of  “Weekly  Reporting  Period”  set  forth  in  Section  1.01  of  the  Credit  Agreement is hereby amended to replace the figure “$12,500,000” with the figure “$16,500,000” each  time such figure appears therein.           (h)   Section 2.14(b) of the Credit Agreement is hereby amended and restated as follows:                      (b)    If at any time the Administrative Agent determines (which determination               shall  be  conclusive  absent  manifest  error)  that  (i)  the  circumstances  set  forth  in  clause               (a)(i)  have  arisen  and  such  circumstances  are  unlikely  to  be  temporary  or  (ii)  the               circumstances set forth in clause (a)(i) have not arisen but either (w) the supervisor for               the  administrator  of  the  LIBO  Screen  Rate  has  made  a  public  statement  that  the               administrator  of  the  LIBO  Screen  Rate  is  insolvent  (and  there  is  no  successor               administrator  that  will  continue  publication  of  the  LIBO  Screen  Rate),  (x)  the               administrator of the LIBO Screen Rate has made a public statement identifying a specific               date  after  which  the  LIBO  Screen  Rate  will  permanently  or  indefinitely  cease  to  be               published by it (and there is no successor administrator that will continue publication of               the LIBO Screen Rate), (y) the supervisor for the administrator of the LIBO Screen Rate               has made a public statement identifying a specific date after which the LIBO Screen Rate               will  permanently  or  indefinitely  cease  to  be  published  or  (z)  the  supervisor  for  the               administrator of the LIBO Screen Rate or a Governmental Authority having jurisdiction               over  the  Administrative  Agent  has  made  a  public  statement  identifying  a  specific  date               after which the LIBO Screen Rate may no longer be used for determining interest rates               for loans, then the Administrative Agent and the Borrower Representative shall endeavor               to establish an alternate rate of interest to the LIBO Rate that gives due consideration to               the  then  prevailing  market  convention  for  determining  a  rate  of  interest  for  syndicated               loans  in  the  United  States  at  such  time,  and  shall  enter  into  an  amendment  to  this               Agreement to reflect such alternate rate of interest and such other related changes to this               Agreement as may be applicable (but for the avoidance of doubt, such related changes               shall not include a reduction of the Applicable Rate).  Notwithstanding anything to the               contrary  in  Section  9.02,  such  amendment  shall  become  effective  without  any  further               action  or  consent  of  any  other  party  to  this  Agreement  so  long as  the  Administrative               Agent shall not have received, within five (5) Business Days of the date notice of such               alternate rate of interest is provided to the Lenders, a written notice from the Required               Lenders stating that such Required Lenders object to such amendment.  Until an alternate               rate of interest shall be determined in accordance with this clause (b) (but, in the case of               the  circumstances  described  in  clause  (ii)  of  the  first  sentence  of  this  Section  2.14(b),               only  to  the  extent  the  LIBO  Screen  Rate  for  such  Interest  Period  is  not  available  or               published at such time on a current basis), (x) any Interest Election Request that requests                                             2    

 

             the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar               Borrowing  shall  be  ineffective  and  any  such  Eurodollar  Borrowing  shall  be  repaid  or               converted  into  an  ABR  Borrowing  on  the  last  day  of  the  then  current  Interest  Period               applicable thereto, and (y) if any Borrowing Request requests a Eurodollar Borrowing,               such Borrowing shall be made as an ABR Borrowing; provided that, if such alternate rate               of interest shall be less than zero, such rate shall be deemed to be zero for the purposes of               this Agreement.                              (i)   Section 3.15 of the Credit Agreement is hereby amended to replace the reference to the  “Effective Date” contained therein with a reference to the “Amendment No. 4 Effective Date.”          (j)   Section 3.18 of the Credit Agreement is hereby amended to replace each reference to the  “Effective Date” contained therein with a reference to the “Amendment No. 4 Effective Date.”          (k)   Section 5.11 of the Credit Agreement is hereby amended to: (x) amend and restate clause  (i) of the proviso set forth in the final sentence therein as follows:                        (i) an Inventory appraisal may be conducted during any calendar year at the sole         expense of the Loan Parties if the Aggregate Availability is less than $50,000,000 at any time         during such calendar year,          and (y) replace the figure “$12,500,000” set forth therein with the figure “$16,500,000.”          (l)   Section  5.12  of  the  Credit  Agreement  is  hereby  amended  to  replace  the  figure  “$12,500,000” set forth therein with the figure “$16,500,000.”          (m)   Article VIII of the Credit Agreement is hereby amended to add the following provisions  to the end of such Article:                          Each  Lender  (x)  represents  and  warrants,  as  of  the  date  such  Person  became  a                  Lender  party  hereto,  to,  and  (y) covenants,  from  the  date  such Person  became  a                  Lender party hereto to the date such Person ceases being a Lender party hereto, for                  the benefit of, the Administrative Agent and its Affiliates, and not, for the avoidance                  of doubt, to or for the benefit of any Borrower or any other Loan Party, that at least                  one of the following is and will be true:                           (a) such Lender is not using “plan assets” (within the  meaning of the Plan                   Asset Regulations) of one or more Benefit Plans in connection with the Loans, the                   Letters of Credit or the Commitments,                                                  (b) the transaction exemption set forth in one or more PTEs, such as PTE 84-                  14 (a class exemption for certain transactions determined by independent qualified                   professional asset managers), PTE 95-60 (a class exemption for certain transactions                   involving  insurance  company  general  accounts),  PTE  90-1  (a  class  exemption  for                   certain  transactions  involving  insurance  company  pooled  separate  accounts),  PTE                   91-38  (a  class  exemption  for  certain  transactions  involving  bank  collective                   investment  funds)  or  PTE  96-23  (a  class  exemption  for  certain  transactions                   determined by in-house asset managers), is applicable with respect to such Lender’s                   entrance into, participation in, administration of and performance of the Loans, the                   Letters  of  Credit,  the  Commitments  and  this  Agreement,  and  the conditions  for                                              3    

 

    exemptive  relief  thereunder  are and  will  continue  to  be  satisfied  in  connection      therewith,                        (c)  (i)  such  Lender  is  an  investment  fund  managed  by  a  “Qualified      Professional  Asset  Manager”  (within  the  meaning  of  Part  VI  of  PTE  84-14),  (ii)      such Qualified Professional Asset Manager made the investment decision on behalf      of such Lender to enter into, participate in, administer and perform the Loans, the      Letters  of  Credit,  the  Commitments  and  this  Agreement,  (iii)  the  entrance  into,      participation  in,  administration of  and  performance  of  the  Loans, the Letters of      Credit,  the  Commitments  and  this  Agreement  satisfies  the  requirements  of  sub-     sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of      such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied      with respect to such Lender’s entrance into, participation in, administration of and      performance  of  the  Loans,  the  Letters of Credit, the Commitments  and  this      Agreement, or                        (d)  such  other  representation,  warranty  and  covenant  as  may  be agreed  in      writing between the Administrative Agent, in its sole discretion, and such Lender.        In  addition,  unless  the  immediately  preceding  clause  (a)  is  true  with  respect  to  a  Lender or such Lender has not provided another representation, warranty and covenant as  provided in the immediately preceding clause (d), such Lender further (x) represents and  warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants,  from the date such Person became a Lender party hereto to the date such Person ceases  being  a  Lender  party  hereto,  for  the  benefit  of,  the  Administrative  Agent  and  its  Affiliates, and not, for the avoidance of doubt, to or for the benefit of any Borrower or  any other Loan Party, that:                           (a) none of the Administrative Agent or any of its Affiliates is a fiduciary with      respect to the assets of such Lender (including in connection with the reservation or      exercise of any rights by the Administrative Agent under this Agreement, any Loan      Document or any documents related to hereto or thereto),                      (b) the Person making the investment decision on behalf of such Lender with      respect to the entrance into, participation in, administration of and performance of      the  Loans,  the  Letters  of  Credit,  the  Commitments  and  this  Agreement  is      independent (within the meaning of 29 CFR § 2510.3-21, as amended from time to      time) and is a bank, an insurance carrier, an investment adviser, a broker-dealer or      other person that holds, or has under management or control, total assets of at least      $50 million, in each case as described in 29 CFR §2510.3-21(c)(1)(i)(A)-(E),                      (c) the Person making the investment decision on behalf of such Lender with      respect to the entrance into, participation in, administration of and performance of      the Loans, the Letters of Credit, the Commitments and this Agreement is capable of      evaluating  investment  risks  independently,  both  in  general  and with  regard  to      particular  transactions  and  investment  strategies  (including  in  respect  of  the      Obligations),                      (d) the Person making the investment decision on behalf of such Lender with      respect to the entrance into, participation in, administration of and performance of      the Loans, the Letters of Credit, the Commitments and this Agreement is a fiduciary                                 4                  

 

                 under ERISA or the Code, or both, with respect to the Loans, the Letters of Credit,                   the Commitments and this Agreement and is responsible for exercising independent                   judgment in evaluating the transactions hereunder, and                                                (e) no fee or other compensation is being paid directly to the Administrative                   Agent or any of its Affiliates for investment advice (as opposed to other services) in                   connection  with  the  Loans,  the  Letters  of  Credit,  the  Commitments  or  this                   Agreement.                                            The Administrative Agent hereby informs the Lenders that it is not undertaking               to  provide  impartial  investment  advice,  or  to  give  advice  in  a fiduciary  capacity,  in               connection with the transactions contemplated hereby, and that it has a financial interest               in  the  transactions  contemplated  hereby  in  that  it  or  an  Affiliate  of  it  (i)  may  receive               interest  or  other  payments  with  respect  to  the  Loans,  the  Letters  of  Credit,  the               Commitments and this Agreement, (ii) may recognize a gain if it extended the Loans, the               Letters of Credit or the Commitments for an amount less than the amount being paid for               an interest in the Loans, the Letters of Credit or the Commitments by such Lender or (iii)               may  receive  fees  or  other  payments  in  connection  with  the  transactions  contemplated               hereby, the Loan Documents or otherwise, including structuring fees, commitment fees,               arrangement fees, facility fees, upfront fees, underwriting fees, ticking fees, agency fees,               administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter               of  credit  fees,  fronting  fees,  deal-away  or  alternate  transaction  fees,  amendment  fees,               processing  fees,  term  out  premiums,  banker’s  acceptance  fees,  breakage  or  other  early               termination fees or fees similar to the foregoing.                              (n)   Schedules  3.15  and  3.18  to  the  Credit  Agreement  are  hereby  amended  and  restated  in  their entirety to read as set forth on Exhibit A hereto.                                      Section 2.   Conditions  of  Effectiveness.   The  effectiveness  of  this  Amendment  is  subject to the conditions precedent that the Administrative Agent shall have received:                         (a)   counterparts to this Amendment, duly executed by each of the Borrowers, the other Loan  Parties, the Lenders and the Administrative Agent;           (b)   payment  and  reimbursement  of  the  Administrative  Agent’s  and  its  affiliates’  fees  and  expenses  (including,  to  the  extent  invoiced,  reasonable  fees  and  expenses  of  counsel  for  the  Administrative Agent) in connection with this Amendment and the other Loan Documents; and           (c)   such  other  opinions,  instruments  and  documents  as  are  reasonably  requested  by  the  Administrative Agent.                               Section 3.   Representations  and  Warranties  of  the  Loan  Parties.  Each Loan  Party hereby represents and warrants as follows:                (a)    This Amendment has been duly executed  and  delivered  by  it  and  constitutes  its  legal,  valid  and  binding  obligations,  enforceable  in  accordance  with  its  terms,  subject  to  applicable  bankruptcy,  insolvency,  reorganization,  moratorium  or  other  laws  affecting  creditors’  rights  generally  and  subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.                                              5    

 

                            (b)    Immediately  after  giving  effect  to  this  Amendment,  the  representations  and  warranties of the Loan Parties set forth in the Loan Documents shall be true and correct in all material  respects (provided that any representation or warranty that is qualified by materiality, Material Adverse  Effect or similar language shall be true and correct in all respects) on and as of the date hereof, except to  the extent that such representations and warranties specifically refer to an earlier date, in which case they  shall  be  true  and  correct  in  all  material  respects  (provided  that  any  representation  or  warranty  that  is  qualified  by  materiality,  Material  Adverse  Effect  or  similar  language  shall  be  true  and  correct  in  all  respects) as of such earlier date.                              (c)    Immediately after giving effect to this Amendment, no Default or Event of Default  shall have occurred and be continuing.                               Section 4.    Reaffirmation.  Except as specifically set forth in this Amendment, the  Loan Documents shall remain in full force and effect and are hereby reaffirmed, ratified and confirmed.   To the extent that any provision of this Amendment conflicts with any terms or conditions set forth in the  Loan  Documents,  the  provisions  of  this  Amendment  shall  supersede  and  control.   Except as  expressly  provided  herein,  the  execution  and  delivery  of  this  Amendment  shall  not:  (i)  constitute  an  extension,  modification,  or  waiver  of  any  aspect  of  the  Loan  Documents  or any  right  or  remedy  thereunder;  (ii)  extend the terms of the Loan Documents or the due date of any of the loans set forth therein; (iii) establish  a course of dealing between the Administrative Agent, the Issuing Bank and/or the Lenders and the Loan  Parties or give rise to any obligation on the part of the Administrative Agent, the Issuing Bank and/or any  Lender to extend, modify or waive any term or condition of the Loan Documents; or (iv) give rise to any  defenses or counterclaims to the Administrative Agent’s, the Issuing Bank’s and/or any Lender’s right to  compel payment of any loan or to otherwise enforce its rights and remedies under the Loan Documents.   Each of the Loan Parties restates, acknowledges and agrees that the Secured Obligations are outstanding  without  claim,  offset,  counterclaim,  defense  or  affirmative  defense  of  any  kind  and  the  Secured  Obligations remain the continuing and individual obligations of the Loan Parties, until the termination of  all  Commitments,  payment  and  satisfaction  in  full  in  cash  of  all  Secured  Obligations  (other  than  Unliquidated   Obligations),  and  the  cash  collateralization  of  all  Unliquidated  Obligations  in  a  manner  satisfactory to the Administrative Agent.                              Section 5.   Effect on Credit Agreement.  Upon  the  effectiveness  of  this  Amendment, on and after the date hereof, each reference in the Credit Agreement to “this Agreement,”  “hereunder,”  “hereof,”  “herein”  or  words  of  like  import  shall  mean  and  be  a  reference  to  the  Credit  Agreement, as amended and modified hereby.                              Section 6.   GOVERNING  LAW.   THIS  AMENDMENT  SHALL  BE  GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE  OF NEW YORK.                              Section 7.   Headings.  Section headings in this Amendment are included herein for  convenience of reference only and shall not constitute a part of this Amendment for any other purpose.                              Section 8.   Counterparts.  This Amendment may be executed by one or more of the  parties  to  this  Amendment  on  any  number  of  separate  counterparts  and  all  of  said  counterparts  taken  together  shall  be  deemed  to  constitute  one  and  the  same  instrument.  A  facsimile  or  PDF  copy  of  any  signature hereto shall have the same effect as the original thereof.                                       [The remainder of this page is intentionally blank.]                                              6    

 

 

 

 

 

 

 

 

 

 

 

                                                    Exhibit A         [see attached]                           

 

                                                                                                                                                                                     Schedule 3.15                                                Capitalizations and Subsidiaries                                                                                                   Entity               Owner(s)       Class of Equity   Type of Entity                                                                        Interests                       Winnebago of Indiana, LLC   Winnebago        Membership       Iowa limited                                                   Industries, Inc. Interests        liability company                                                                           Octavius Corporation        Winnebago        Common Stock     Delaware                                                   Industries, Inc.                  corporation                                                                                                             Grand Design RV, LLC        Octavius         Membership       Indiana limited                                                   Corporation      Interests        liability company                                                                                                                                              Chris Craft Limited         Winnebago        Ordinary Shares  Jersey Channel                                                   Industries, Inc.                  Islands private                                                                                     company limited                                                                                     by shares                       Chris Craft USA, Inc.*      Chris Craft      Common Stock     Delaware                                                   Limited                           corporation                                                                                                             Chris-Craft Corporation*    Chris Craft USA, Common Stock     Delaware                                                   Inc.                              corporation                       CC Marine Brand Acquisition, Chris Craft USA, Membership      Delaware LLC                       LLC*                        Inc.             Interests                       CC Property Acquisition,    Chris-Craft      Membership       Delaware LLC                       LLC*                        Corporation      Interests  * This entity is a subsidiary, but not a Loan Party.                                                                     

 

                                                          Schedule 3.18      Coverage Type            Policy #        Policy     Carrier           Limits                               Retention                                               Term  1   Property                 1027183         6/1/18-19  FM Global         TIV $1,1137,870,449                  $1M PD/TE                                                                             All Risk Company Form                subject to exceptions  2   Automobile               41 CSE S57602   6/1/18-19  The Hartford      $2M Each Accident Third-Party Liability $100,000 Liability                                                                                                                 Deductible                                                                            Physical Damage:                                                                            -Self-Insured for Fleet Autos        Phys Damage/Garage:                                                                            -Actual Cash Value                   $1,000 Comprehensive                                                                                                                 Deductible                                                                            Garage Keepers:                      $1,000 Collision                                                                            $1.5M - IA, OR, IN                   Deductible  3   General Liability        41 CSE S57601   6/1/18-19  The Hartford      $1M Each Occurrence                  $250,000 Liability      (Excluding                                                            $1M Personal/Advertising Injury      Deductible      Products/Completed                                                    $300K Damage to Premises Rented to You      Operations)                                                           $10K Medical Expense                                                                            $2M General Aggregate                                                                             Employee Benefits Injury Liability                                                                            $1M Each 'claim' limit                                                                            $1M Aggregate - Subject to General                                                                            Aggregate  4   Retained Risk Protection PL1744429-01    6/1/18-19  Great American    $1M Each Occurrence                  BI/PD Liab Combined      Policy                                              E&S Insurance     $2M Aggregate                         $2.5M Each occurrence      Products/Completed                                  Company                                                  ONLY IF APPLICABLE      Operations Liability                                                                                        $6M    Aggregate                                                                                                                  $50,000 Each                                                                                                                  Occurrence                                                                                                                  (Continuing Self-Insured                                                                                                                 Retention)  5   Excess Liability         XS1744430-01    6/1/2018-  Great American    $10M Each Occurrence       (10 M Lead Excess)                      19         E&S Insurance     $10M Aggregate (where applicable)                                                          Company           $10M Aggregate Products Completed                                                                            Operations  6   Excess Liability         EXS 2000692 01  6/1/18-19  Swiss Re Group    $25M Each Occurrence                 Subject to Great       ($25M xs $10M)                                     North American    $25M Aggregate Limit                 American $10M                                                          Capacity Insurance $25M Aggregate for Products-Completed                                                          Company           Operations  

 

7   Excess Liability         AR3461969       6/1/18-19  Colony Insurance  $15M Each Occurrence                 Subject to Underlying       ($15M xs $35M)                                     Co.               $15M Aggregate                       Policies  8   Foreign Package          7315-69-83 MIN  6/1/18-19  Chubb and Son,    $100,000 International Property-Personal $1,000 ded                                                          Inc.              Property                                                                                                                                                                                                                          General Liability                                                                                                $1M Each Occurrence                                                                                              $1M General Aggregate                                                                                            $1M Personal/Advertising Aggregate                                                                               $1M Dame to Premises Rented to You                                                                               $10,000 Medical Expense Limit                                                                                                                                                                                                     Employee Benefit Programs Errors or                                                                              Omissions                                                                                                        $250K Each Claim/Aggregate                                                                                                                                                                                                        Commercial Auto Liability                                                                                        $1M BI/PD                                                                                                        $10,000 Medical Payments                                                                                                                                                                                                          Workers' Compensation                                                                                            Statutory State of Hire                                                                                                                                                                                                           Repatriation Expense:                                                                                            $250K Each Employee                                                                                              $500K Aggregate                                                                                                                                                                                                                   Employers Liability                                                                                              $1M Limit                                                                                                                                                                                                                         Crime                                $1,000 Deductible Crime                                                                            $5,000 EE Theft                                                                            $5,000 Credit Card Forgery                                                                                                                                                        Blanket Accident                                                                            $300K Principal Sum (Employees)                                                                            $1.5M Per Accident Maximum                                                                              

 

                                                                          Kidnap/Ranson and Extortion                                                                            $100,000 Limit    9   Crime                    106747087       6/1/18-19  Travelers         $5M Each Occurrence                  $100,000 Retention                                                                                                                 Each Loss  10  Commercial Liquor        CPS2827467      6/1/18-19  Scottsdale        $1M Each Common Cause Limit                                                                     Insurance         $2M Aggregate                                                           Company  11  Directors & Officers     106535745       6/1/18-19  Travelers         $10M Aggregate                       $750,000 all Securities       Primary                                                                                                   Retention                                                                                                                 $500,000 All Other                                                                                                                 Claims Retention  

 

12  1st Excess Directors &   DOX1001313010   6/1/18-19  Sompo             $10M xs $10M                         Subject to Underlying      Officers                 0                          International                                          Policies  13  2nd Excess Directors &   BPRO8032444     6/1/18-19  Berkley Insurance $10M xs $20M                         Subject to Underlying      Officers                                            Company                                                Policies  14  3rd Excess Directors &   USF00105818     6/1/18-19  Allianz           $10M xs ADIC D&O                     Subject to Underlying      Officers                                                                                                   Policies  15  Workers Compensation -   41 WNS57600     6/1/18-19  The Hartford      Statutory                            $250,000 Large      AOS                                                                                                        Deductible  16  Workers Compensation -   EWC009401       6/1/18-19  Midwest           Statutory                            $1.1 M Self-Insured      IA                                                  Employers Casualty                                     Retention                                                          Company  17  Workers Compensation     154583-00       Continuo   Washington L&I    Statutory                            n/a       - Monopolistic WA State                 us  18  Property - CC - Florida  AMR-40988-03    3/1/18-19  Amrisc (Lloyds of TIV $23,544,090                      $25,000 PD/Per Occ                                                          London)                                                $5% ($100,000 min)                                                                                                                 Named storm ded                                                                                                                 $50,000 all other                                                                                                                 wind/hail ded  19  Marine General           ZOL-21N32909-   3/1/18-19  Travelers Property $2M Gen Aggregate                   $10,000 Per Occurrence      Liability/Marina Operators 18-ND                    Casualty of       $2M Prod-Comp Ops Aggregate          Ded      Legal Liability Coverage                            America           $1M Pers Inj - Advertising Inj      Marine Manufacturers                                                  $1M Each Occurence      Legal Liability - CC Florida                                          $300,000 Title E&O Annual Aggregate                                                                            Limit  20  Boat Dealers & Protection Z0H-21P07877-  3/1/18-19  Travelers Property Estimated Monthly Ave Inv $1,250,000 $10,000 ded - All other      & Indemnity - CC Florida 18-ND                      Casualty of       $500,000 Any One Vessel              perid ded (per                                                          America           $1M at any unscheduled premises      occurrence)                                                                            $1M while in course of transit by land, air 2.5%  of total insured                                                                            and water                            value any one                                                                            $1M any one trade, exhibition or boat occurrence - Named                                                                            show                                 Storm or Numbered                                                                            $50,000 per occurrence for           Storm                                                                            accessories/supplies/inventory at sched.                                                                            premises  

 

21  Hull Builders Risk - CC  ZOH-15S64329-   3/1/18-19  Travelers Property $500,000 Any one vessel             $50,000 ded (per      Florida                  18-ND                      Casualty of       $9,000,000 Any one accident or       occurrence)                                                          America           occurrence (Yard Limit)              $5,000 ded Protection &                                                                            $1,000,000 Any one Occurrence-       Indemnity ded                                                                            Protection & Indemnity               2.5% of total Ins value                                                                            $3,500,000 Molds (per schedule)      (per occurrence) -                                                                             Coinsurance Molds n/a               Named or Numbered                                                                                                                 Storm                                                                                                                 Molds are included in                                                                                                                 ded  22  Transportation &         H-660-3F23200A- 3/1/18-19  Travelers Property $500,000 Motor Carrier Limit        $10,000 ded  - All other      Equipment - CC Florida   TIL-18                     Casualty of       $500,000 Railroad Limit              perils                                                          America           $500,000 Land Vehicles Limit         All Other Peril Ded -                                                                                                                 Named Storm                                                                            $150,000 Leased or Rented Equipment  Deductible                                                                                                                                                                                             $250,000 Newly acquired equipment    $2,500 ded - Leased or                                                                                                                 Rented Equip  23  Commercial Automobile -  BA-3F215420-18- 3/1/18-19  Phoenix Ins. Co.  $1M CSL Each Accident                All but 2012      CC/Florida               0CN                                          Third Party Liability                $1,000 Collision Ded                                                                                                                  $1,000 Comp Ded                                                                            Physical Damage:                     2012 vehicle                                                                            ACV All Autos                        $5,000 Collision Ded                                                                                                                 $5,000 Comp Ded   24  Primary Bumbershoot - CC ZOB-21N32910-   3/1/18-19  Travelers         $10,000,000 Limit of Liability       $25,000 Retentions      Florida                  18-ND  25  Excess Bumbershoot - CC  NY18LIA1513960  3/1/18-19  Navigators        $15M Excess $10M                           Florida                  1                          Insurance                                                          Company  

 

26  Management Liability - CC 8234-3720      3/1/18-19  Federal Ins Co    D&O                                  D&O      Florida                                             (Chubb)           $1M Each Occurrence/Aggregate        $10,000 Per claim Corp.                                                                            Employment Practices                 Ret.                                                                            $1M Each Occurrence/Aggregate        Employment Practice                                                                            Fiduciary Liability                  $25,000 Retention                                                                            $1,000,000 Each Occurrence/Aggregate Fiduciary                                                                            Crime                                $0 Retention                                                                            $1M Employee Theft Limit             Crime                                                                            $1M Premises Limit                   $5,000 Retention each                                                                            $1M In Transit Limit                 coverage above except                                                                            $1M Forgery Limit                    below                                                                            $1M Computer Fraud Limit             $0 Claims Expense Limit                                                                            $1M Funds Transfer Fraud Limit       Retention                                                                            $1M Money Orders & Counterfeit       $10,000  Social                                                                            Currency Limit                       Engineering Retention                                                                            $1M Credit Card Fraud Limit                                                                            $1M Client Limit                                                                            $250,000 Claims Expense Limit                                                                            $50,000 Social Engineering Fraud   27  Equipment Breakdown      R5099741274     3/1/18-19  Continental       $16,044,090 Limit Per Breakdown      $5,000 Property                                                          Casualty Company  $11,544,090 Property Damage          Damage ded                                                                            $100,000 Expediting Expense          $5,000 Ammonia                                                                            $4,500,000 Business Income/Extra     Contamination ded                                                                            Expense                                                                            $100,000 Ammonia ContaminationExhibit

Exhibit 10b.

WINNEBAGO INDUSTRIES, INC.
2014 OMNIBUS EQUITY, PERFORMANCE AWARD, AND 
INCENTIVE COMPENSATION PLAN
Non-Qualified Stock Option Agreement 
Winnebago Industries, Inc. (the “Company”), pursuant to its 2014 Omnibus Equity, Performance Award, and Incentive Compensation Plan (the “Plan”), hereby grants a stock option award (the “Option”) to you, the Participant named below (the “Participant”).  The terms and conditions of this Option Award are set forth in this Agreement (the “Agreement”), consisting of this cover page, the Option Terms and Conditions on the following pages, and in the Plan document, a copy of which has been provided to you.  Any capitalized term that is used but not defined in this Agreement shall have the meaning assigned to it in the Plan as it currently exists or as it is amended in the future.
	
		
	Name of Participant:_______________________

	No. of Shares Covered:   _______
	Grant Date:       October 15, 2018

	Exercise Price Per Share:$   ______
	Expiration Date:       October 15, 2028

	Vesting and Exercise Schedule:

	

Dates
October 15, 2019
October 15, 2020
October 15, 2021
	 

By signing below or otherwise evidencing your acceptance of this Agreement in a manner approved by the Company, you agree to all of the terms and conditions contained in this Agreement and in the Plan document.  You acknowledge that you have received and reviewed these documents and that they set forth the entire agreement between you and the Company regarding your right to purchase shares of the Company’s common stock pursuant to this Option.
	
			
	PARTICIPANT:
	 
	WINNEBAGO INDUSTRIES, INC.

	 
	 
	By:

	 
	 
	Title:

Exhibit 10b-1

WINNEBAGO INDUSTRIES, INC. 
2014 OMNIBUS EQUITY, PERFORMANCE AWARD, AND 
INCENTIVE COMPENSATION PLAN

Non-Qualified Stock Option Agreement 
Terms and Conditions

1.    DEFINITIONS.  For purposes of this Agreement, the definitions of terms contained in the Plan hereby are incorporated by reference, except to the extent that any such term is specifically defined in this Agreement.  
“Cause” means, unless otherwise defined in a then-effective written agreement (including an Agreement) between a Participant and the Company or any Affiliate, a Participant’s (i) material failure to perform satisfactorily the duties reasonably required of the Participant by the Company (other than by reason of Disability); (ii) material violation of any law, rule, regulation, court order or regulatory directive (other than traffic violations, misdemeanors or other minor offenses); (iii) material breach of the Company's business conduct or ethics code or of any fiduciary duty or nondisclosure, non-solicitation, non-competition or similar obligation owed to the Company or any Affiliate; (iv) engaging in any act or practice that involves personal dishonesty on the part of the Participant or demonstrates a willful and continuing disregard for the best interests of the Company and its Affiliates; or (v) engaging in dishonorable or disruptive behavior, practices or acts which would be reasonably expected to harm or bring disrepute to the Company or any of its Affiliates, their business or any of their customers, employees or vendors.
“Change in Control” means one of the following: 
(1)    An Exchange Act Person becomes the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding Voting Securities, except that the following will not constitute a Change in Control:
(A)    any acquisition of securities of the Company by an Exchange Act Person from the Company for the purpose of providing financing to the Company;
(B)    any formation of a Group consisting solely of beneficial owners of the Company's Voting Securities as of the effective date of the Plan; or
(C)    any repurchase or other acquisition by the Company of its Voting Securities that causes any Exchange Act Person to become the beneficial owner of 30% or more of the Company’s Voting Securities.
If, however, an Exchange Act Person or Group referenced in clause (A), (B) or (C) above acquires beneficial ownership of additional Company Voting Securities after initially becoming the beneficial owner of 30% or more of the combined voting power of the Company’s Voting Securities by one of the means described in those clauses, then a Change in Control will be deemed to have occurred.  
(2)    Individuals who are Continuing Directors cease for any reason to constitute a majority of the members of the Board. 
(3)    A Corporate Transaction is consummated, unless, immediately following such Corporate Transaction, all or substantially all of the individuals and entities who were the beneficial owners of the Company's Voting Securities immediately prior to such Corporate Transaction beneficially own, directly or indirectly, more than 50% of the combined voting power of the then outstanding Voting Securities of the surviving or acquiring entity resulting from such Corporate Transaction (including beneficial ownership through any parent of such entity) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Company's Voting Securities. 
“Continuing Director” means an individual (i) who is, as of the effective date of the Plan, a director of the Company, or (ii) who becomes a director of the Company after the effective date hereof and whose initial election, or nomination for election by the Company’s stockholders, was approved by at least a majority of the then Continuing Directors but excluding, for purposes of this clause (ii), an individual whose initial assumption of office occurs as the result of an actual or threatened proxy contest involving the solicitation of proxies or consents by a person or Group other than the Board, or by reason of an agreement intended to avoid or settle an actual or threatened proxy contest.
“Corporate Transaction” means (i) a sale or other disposition of all or substantially all of the assets of the Company, or (ii) a merger, consolidation, share exchange or similar transaction involving the Company, regardless of whether the Company is the surviving entity.  
“Exchange Act Person” means any natural person, entity or Group other than (i) the Company or any Affiliate; (ii) any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate; (iii) an underwriter temporarily 

Exhibit 10b-2

holding securities in connection with a registered public offering of such securities; or (iv) an entity whose voting securities are beneficially owned by the beneficial owners of the Company’s voting securities in substantially the same proportions as their beneficial ownership of the Company’s voting securities.  
“Good Reason” shall have the meaning set forth in the Participant’s change in control agreement, if applicable.
“Group” means two or more persons who act, or agree to act together, as a partnership, limited partnership, syndicate or other group for the purpose of acquiring, holding, voting or disposing of securities of the Company.
“Service” means provision of services to the Company or any Affiliate in any Service Provider capacity.  The Participant’s Service shall be deemed to have terminated either upon an actual cessation of providing services to the Company or any Affiliate or upon the entity to which the Participant provides services ceasing to be an Affiliate.  Service shall not be deemed terminated in the case of (i) any approved leave of absence; (ii) the Participant’s transfer among the Company and any Affiliates in any Service Provider capacity; or (iii) any change in the Participant’s status so long as the Participant remains in the service of the Company or any Affiliate in any Service Provider capacity.  
“Service Provider” means an Employee, a non-employee director, or any natural person who is a consultant or advisor, or is employed by a consultant or advisor retained by the Company or any Affiliate, and who provides services (other than in connection with (i) a capital-raising transaction or (ii) promoting or maintaining a market in Company securities) to the Company or any Affiliate.
“Voting Securities” of an entity means the outstanding equity securities (or comparable equity interests) entitled to vote generally in the election of directors of such entity.
2.    Vesting and Exercisability of Option.  

(a)    Scheduled Vesting. This Option will vest and become exercisable as to the number of Shares and on the dates specified in the Vesting and Exercise Schedule on the cover page to this Agreement, so long as the Participant’s Service to the Company does not end.  The Vesting and Exercise Schedule is cumulative, meaning that to the extent the Option has not already been exercised and has not expired or been terminated or cancelled, the Participant or the person otherwise entitled to exercise the Option as provided in this Agreement may at any time purchase all or any portion of the Shares subject to the vested portion of the Option.  This Option shall not be exercisable under any circumstances after the expiration of ten (10) years from the date this option is granted.
(b)    Accelerated Vesting. Vesting and exercisability of this Option will be accelerated during the term of the Option under the circumstances described in Section 11 of the Plan.  If the Participant’s Service terminates prior to the final scheduled vesting date specified in the Vesting and Exercise Schedule on the cover page to this Agreement due to the Participant’s death or Disability, then any unvested portion of the Option subject to this Agreement shall vest as of such termination date.
3.    Intentionally Omitted.
4.    Expiration.  This vested and exercisable portions of this Option will expire and will no longer be exercisable at 5:00 p.m. Central Time on the earliest of:
		
	(a)
	The ten (10) year anniversary of the date this option is granted;

		
	(b)
	Upon the Participant’s termination of employment for Cause;

		
	(c)
	Upon the one year anniversary of the date of the Participant’s termination of  Service due to death or Disability;

		
	(d)
	Upon the three month anniversary of the date of the Participant’s termination of Service due to any reason other than Cause, death or Disability; or 

		
	(e)
	The date (if any) fixed for termination or cancellation of this Option pursuant to Section 11 of the Plan.

5.    METHOD OF EXERCISING THE OPTION.

(a)    Minimum Shares.  This Option may be exercised in whole or in part, but not for less than 100 shares at any one time, unless fewer than 100 Shares are then purchasable under the Option and the Option is then being exercised as to all such Shares.

(b)    Written Notice.  This Option may be exercised only by Participant or Participant’s legal representative as provided for in the Plan.  This Option may be exercised by giving written notice to the Company, addressed to the attention of the Secretary of the Company.  Such notice shall be in such form as may be approved by the Company and shall state, among other things, the number of shares of Common Stock to be purchased, and must be signed or otherwise authenticated by the Participant or Participant’s legal representative entitled to exercise the Option and, if being exercised by any person other than Participant, be accompanied by proof, satisfactory to counsel for the Company, of the right of such person to exercise the Option.  After the Participant has obtained approval from the Secretary of the Company to exercise some or all of the Option, he or she is required to deliver an 

Exhibit 10b-3

electronic notice of exercise to the third-party stock plan administrator retained by the Company (which electronic notice will be in such form as may be approved by the Company, including (but not limited to) the following information: the number of shares of Common Stock to be purchased, the person(s) in whose name the stock certificate for the Shares is to be registered together with other identifying information relating to such holder, and the manner in which the exercise price will be paid).  The electronic notice must be authenticated by the person exercising this Option.

(c)    Payment of Exercise Price.  The Exercise Price plus any applicable withholding or other compensation taxes, commissions and fees payable upon exercise of all or any portion of the Shares subject to this Option shall be payable to the Company in full through one or a combination of the following methods:

		
	i.
	“Cash Transfer” from the Participant’s stock brokerage account at least 2 days prior to event, the Participant shall submit payment of the aggregate amount of the Exercise Price as well as all applicable withholding or other compensation taxes, commissions and fees to his or her brokerage account to cover costs; and/or

		
	ii.
	“Share Withholding” whereby the Participant authorizes the Company to retain, from the total number of Shares as to which the Option is being exercised, that number of Shares having a Fair Market Value on the date of exercise equal to the aggregate exercise price and the amount of any compensation taxes, commissions and fees due relating to such exercise.

In the event the Participant does not elect a payment method, the “Share Withholding” method shall apply automatically. 
(d)    Withholding Taxes.  The Participant may not exercise this Option in whole or in part unless the Participant makes arrangements acceptable to the Company for payment of any federal, state, local or foreign withholding taxes that may be due as a result of the exercise of this Option.  Withholding taxes shall be payable by the Participant in accordance with the election(s) he or she makes pursuant to Section 5(c) above. Delivery of Shares upon exercise of this Option is subject to the satisfaction of applicable withholding tax obligations.

(e)Transfer of Shares.  As promptly as practicable after receipt of such written notice, required representations, and payment, the Company shall cause to be issued and delivered to the Participant or Participant’s legal representative, electronic transfer of such shares so purchased, registered in the name as specified in the written notice and endorsed with any appropriate restrictive legends in the Participant’s stock plan account.

6.    TRANSFERABILITY OF OPTION.  This Option may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.  In the event of the death of Participant, the Company shall deliver this Option and/or amounts payable to the executor or administrator of Participant’s estate or, if no executor or administrator has been appointed to the knowledge of the Company, the Company, it its sole discretion, may deliver this Option and/or amounts payable to the spouse or to any one or more dependents or relatives of Participant, or if no spouse, dependent may designate.  This Option shall not be subject to any levy, attachment execution or similar process.  In the event of any transfer or levy of process upon the rights or interests hereby conferred, the Company may terminate this Option by written notice to Participant and it shall thereupon become null and void.  This Agreement shall be binding upon the beneficiaries and legal representative of Participant.

7.    ADDITIONAL RESTRICTIONS ON EXERCISE.  This Option may not be exercised if the issuance of shares upon such exercise would constitute a violation of any applicable federal or state securities or other law or regulation, including, without limitation, the Internal Revenue Code of 1986, as amended, or regulations promulgated thereunder, or Section 16(b) of the Securities Exchange Act of 1934, as amended.  As a condition to the exercise of this Option, the Company may require the person exercising this Option to make any representation or warranty to the Company as may be required by applicable law or regulation or other restriction or agreement binding upon or otherwise affecting the Shares of the Company.

8.    CHANGE OF CONTROL.  Pursuant to the terms of the Plan, the provisions of Section 11 of the Plan are hereby superseded for purposes of this Agreement by the provisions set forth on Appendix A attached hereto. 

9.    NOTICE.  Every notice or other communication relating to this Agreement shall be in writing and shall be mailed to or delivered (including electronically) to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided.  Unless and until some other address is so designated, all notices or communications by the Participant to the Company shall be mailed or delivered to the Company, to the attention of its Vice President, General Counsel and Secretary, at its office at 13200 Pioneer Trail, Eden Prairie, MN 55347, slbogart@winnebagoind.com, and all notices or communications by the Company to the Participant may be given to the Participant personally or may be mailed or, if the Participant is still a Service Provider, emailed to the Participant at the address indicated in the Company's records as the Participant’s most recent mailing or email address.

10.    Additional Provisions.
(a)    No Right to Continued Service.  This Agreement does not give the Participant a right to continued Service with the Company or any Affiliate, and the Company or any such Affiliate may terminate the Participant’s Service at any time and otherwise deal with the Participant without regard to the effect it may have upon the Participant under this Agreement.

Exhibit 10b-4

(b)    Governing Plan Document.  This Agreement and the Award are subject to all the provisions of the Plan, and to all interpretations, rules and regulations which may, from time to time, be adopted and promulgated by the Committee pursuant to the Plan.  If there is any conflict between the provisions of this Agreement and the Plan, the provisions of the Plan will govern.
(c)    Governing Law.  This Agreement, the parties’ performance hereunder, and the relationship between them shall be governed by, construed, and enforced in accordance with the laws of the State of Iowa, without giving effect to the choice of law principles thereof.  
(d)    Severability.  The provisions of this Agreement shall be severable and if any provision of this Agreement is found by any court to be unenforceable, in whole or in part, the remainder of this Agreement shall nevertheless be enforceable and binding on the parties.  The Participant also agrees that any trier of fact may modify any invalid, overbroad or unenforceable provision of this Agreement so that such provision, as modified, is valid and enforceable under applicable law.
(e)    Binding Effect.  This Agreement will be binding in all respects on the Participant’s heirs, representatives, successors and assigns, and on the successors and assigns of the Company.
(f)    Electronic Delivery and Acceptance.  The Company may deliver any documents related to this Option by electronic means and request the Participant’s acceptance of this Agreement by electronic means.  The Participant hereby consents to receive all applicable documentation by electronic delivery and to participate in the Plan through an on-line (and/or voice activated) system established and maintained by the Company or the Company’s third-party stock plan administrator.

By signing the cover page of this Agreement or otherwise accepting this Agreement in a manner approved by the Company, you agree to all the terms and conditions described above and in the Plan document. 

Exhibit 10b-5

APPENDIX A

11.    Corporate Transactions; Change in Control.  The following provisions shall apply to outstanding Awards in the event of a Change in Control that involves a Corporate Transaction.  
(a)(1)    Continuation, Assumption or Replacement of Awards.  In the event of a Corporate Transaction, then the surviving or successor entity (or its parent) may continue, assume or replace Awards outstanding as of the date of the Corporate Transaction (with such adjustments as may be required or permitted by Section 17), and such Awards or replacements therefor shall remain outstanding and be governed by their respective terms, subject to Section 11(a)(4) below.  A surviving or successor entity may elect to continue, assume or replace only some Awards or portions of Awards.  For purposes of this Section 11(a)(1), an Award shall be considered assumed or replaced if, in connection with the Corporate Transaction and in a manner consistent with Code Section 409A (and Code Section 424 if the Award is an ISO), either (i) the contractual obligations represented by the Award are expressly assumed by the surviving or successor entity (or its Parent) with appropriate adjustments to the number and type of securities subject to the Award and the exercise price thereof that preserves the intrinsic value of the Award existing at the time of the Corporate Transaction, or (ii) the Participant has received a comparable equity-based award that preserves the intrinsic value of the Award existing at the time of the Corporate Transaction and contains terms and conditions that are substantially similar to those of the Award.  To the extent vesting of any Award continued, assumed or replaced under this Section 11(a)(1) is subject to satisfaction of specified performance goals, those goals shall be deemed to be achieved as of the date of the Corporate Transaction at the target level of performance, or, in the discretion of the Committee, at the actual level of performance (if determinable), and such Awards shall continue to be subject to any continuing service requirements.
(2)    Acceleration.  If and to the extent that outstanding Awards under the Plan are not continued, assumed or replaced in connection with a Corporate Transaction, then (i) all outstanding Option and SAR Awards shall become fully vested and exercisable for such period of time prior to the effective time of the Corporate Transaction as is deemed fair and equitable by the Committee, and shall terminate at the effective time of the Corporate Transaction, (ii) all outstanding Stock Awards shall fully vest immediately prior to the effective time of the Corporate Transaction, and (iii) to the extent vesting of any Award is subject to satisfaction of specified performance goals, such Award shall be deemed “fully vested” for purposes of this Section 11(a)(2) at the greater of target level of performance or actual level of performance (if determinable) and the vested portion of the Award at that level of performance is proportionate to the portion of the performance period that has elapsed as of the effective time of the Corporate Transaction.  The Committee shall provide written notice of the period of accelerated exercisability of Option and SAR Awards to all affected Participants.  The exercise of any Option or SAR Award whose exercisability is accelerated as provided in this Section 11(a)(2) shall be conditioned upon the consummation of the Corporate Transaction and shall be effective only immediately before such consummation.  
(3)    Payment for Awards.  If and to the extent that outstanding Awards under the Plan are not continued, assumed or replaced in connection with a Corporate Transaction, then the Committee may provide that some or all of such outstanding Awards shall be canceled at or immediately prior to the effective time of the Corporate Transaction in exchange for payments to the holders as provided in this Section 11(a)(3).  The Committee will not be required to treat all Awards similarly for purposes of this Section 11(a)(3).  The payment for any Award canceled shall be in an amount equal to the difference, if any, between (i) the fair market value (as determined in good faith by the Committee) of the consideration that would otherwise be received in the Corporate Transaction for the number of Shares subject to the Award, and (ii) the aggregate exercise price (if any) for the Shares subject to such Award.  If the amount determined pursuant to the preceding sentence is not a positive number with respect to any Award, such Award may be canceled pursuant to this Section 11(a)(3) without payment of any kind to the affected Participant.  With respect to an Award whose vesting is subject to the satisfaction of specified performance goals, the number of Shares subject to such an Award for purposes of this Section 11(a)(3) shall be the number of Shares as to which the Award would have been deemed “fully vested” for purposes of Section 11(a)(2).  Payment of any amount under this Section 11(a)(3) shall be made in such form, on such terms and subject to such conditions as the Committee determines in its discretion, which may or may not be the same as the form, terms and conditions applicable to payments to the Company’s stockholders in connection with the Corporate Transaction, and may, in the Committee’s discretion, include subjecting such payments to vesting conditions comparable to those of the Award canceled, subjecting such payments to escrow or holdback terms comparable to those imposed upon the Company’s stockholders under the Corporate Transaction, or calculating and paying the present value of payments that would otherwise be subject to escrow or holdback terms.  
(4)    Termination After a Corporate Transaction.  If and to the extent that Awards are continued, assumed or replaced under the circumstances described in Section 11(a)(1), and if within twenty-four (24) months after the Corporate Transaction a Participant experiences an involuntary termination of Service for reasons other than Cause, or terminates his or her Service for Good Reason, then (i) outstanding Option and SAR Awards issued to the Participant that are not yet fully exercisable shall immediately become exercisable in full and shall remain exercisable for one year following the Participant’s termination of employment, and (ii) any Stock Awards that are not yet fully vested shall immediately vest in full.
(b)    Other Change in Control.  In the event of a Change in Control that does not involve a Corporate Transaction, if within twenty-four (24) months after the Change in Control a Participant experiences an involuntary termination of Service for reasons other than Cause, or terminates his or her Service for Good Reason, then (i) outstanding Option and SAR Awards issued to the Participant that are not yet fully exercisable shall immediately become fully vested and exercisable and shall remain exercisable for one year following the Participant’s termination of employment, (ii) any Stock Awards that are not yet fully vested shall immediately 

Exhibit 10b-6

vest in full, and (iii) to the extent vesting of any Award is subject to satisfaction of specified performance goals, such Award shall be deemed “fully vested” for purposes of this Section 11(b) at the greater of target level of performance or actual level of performance (if determinable) and the vested portion of the Award at that level of performance is proportionate to the portion of the performance period that has occurred up to the date of such Participant’s termination of Service.
(c)    Dissolution or Liquidation.  Unless otherwise provided in an applicable Agreement, in the event of a proposed dissolution or liquidation of the Company, the Committee will notify each Participant as soon as practicable prior to the effective date of such proposed transaction.  An Award will terminate immediately prior to the consummation of such proposed action.  

Exhibit 10b-7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]