Document:

exv10w1

 

Exhibit 10.1

AGREEMENT

     AGREEMENT
(this “Agreement”) made this 19th day of April, 2005 among Westin Hotels Limited
Partnership, a Delaware limited partnership (“WHLP”), Westin Chicago Limited Partnership, a
Delaware limited partnership (“WCLP”), St. Francis Limited Partnership, a Delaware limited
partnership (“St. Francis LP” and, together with WHLP and WCLP, the “Partnerships”), Westin Realty
Corp., a Delaware corporation and the general partner of WHLP (“Westin Realty”), 909 North Michigan
Avenue Corporation, a Delaware corporation and the general partner of WCLP (“909 Corporation”), St.
Francis Hotel Corporation, a Delaware corporation and the general partner of St. Francis LP (“St.
Francis Corporation” and, together with Westin Realty and 909 Corporation, the “General Partners”),
and Starwood Hotels & Resorts Worldwide, Inc., a Maryland corporation and the parent of Westin
Realty, 909 Corporation and St. Francis Corporation (“Starwood”).

     WHEREAS, the Amended and Restated Agreement of Limited Partnership of Westin Hotels Limited
Partnership, dated February 18, 1987 (the “WHLP Partnership Agreement”), the Amended and Restated
Agreement of Limited Partnership of the Westin Chicago Limited Partnership, dated February 18, 1987
(the “WCLP Partnership Agreement”) and the Amended and Restated Agreement of Limited Partnership of
the Westin St. Francis Limited Partnership, dated February 18, 1987 (the “St. Francis Partnership
Agreement” and, together with the WHLP Partnership Agreement and the WCLP Partnership Agreement,
the “Partnership Agreements”) require that each of the Partnerships, to the fullest extent
permitted by law, indemnify and hold harmless any Person (as defined below) who was or is a party
or is threatened to be made a party to any threatened, pending or completed action, suit or
proceeding (including any action by or in the right of such partnership), by reason of any act or
omission or alleged act or omission arising out of such Person’s activities as a general partner of
such partnership or as an officer, director, shareholder or Affiliate (as defined below) of the
general partner of such partnership if such activities were performed in good faith either on
behalf of such partnership or in furtherance of the interests of such partnership, and in a manner
reasonably believed by such Person to be within the scope of the authority conferred by the
applicable Partnership Agreement or by law or by the consent of the limited partners in accordance
with the provisions of the applicable Partnership Agreement, against losses, damages or expenses
for which such Person has not otherwise been reimbursed (including attorneys’ fees, judgments,
fines and amounts paid in settlement) actually and reasonably incurred by such Person in connection
with such action, suit or proceeding so long as such person was not guilty of negligence,
misconduct or any other breach of fiduciary duty with respect to such acts or omissions,
provided that satisfaction of any indemnification and any holding harmless will be
from and limited to partnership assets and no limited partner shall have any personal liability on
account thereof, and provided that such an indemnification of an Affiliate will be
limited to losses, damages or expenses to which the Affiliate is subject because it has performed a
fiduciary obligation of the general partner on behalf of the general partner.

     WHEREAS, WHLP and Westin Realty currently are involved in an arbitration proceeding with
Kalmia Investors LLC (“Kalmia”), a limited partner of WHLP;

 

 

     WHEREAS, in the arbitration Kalmia has asserted certain counterclaims against WHLP and Westin
Realty and third-party claims against Starwood, 909 Corporation, WCLP, St. Francis Corporation and
St. Francis LP;

     WHEREAS, the General Partners believe the advancement of expenses in accordance with this
Agreement is fair to the Partnerships and are not aware of any special circumstances indicating the
such advancement would be unfair to the Partnerships; and

     WHEREAS, the General Partners believe the advancement of expenses in accordance with this
Agreement is in the best interest of the Partnerships;

     NOW, THEREFORE, the parties hereto hereby agree as follows:

     1. Definitions. The following terms, as used herein, shall have the following
respective meanings:

     (a) An Affiliate: of a specified Person means (i) any Person directly or indirectly
owning, controlling or holding with power to vote 10% or more of the outstanding voting securities
of the specified Person; (ii) any Person 10% or more of whose outstanding voting securities are
directly or indirectly owned, controlled or held with power to vote by the specified Person; (iii)
any Person directly or indirectly controlling, controlled by or under common control with the
specified Person; (iv) any officer, director or partner of the specified Person; and (v) any Person
of which the specified Person is an officer, director or partner.

     (b) Claim: means the pending arbitration proceeding among Kalmia, WHLP, Westin
Realty, Starwood, 909 Corporation, WCLP, St. Francis Corporation and St. Francis LP as well as any
other action, suit or proceeding which may be brought by Kalmia or its Affiliates related to any of
the Partnerships.

     (c) Expenses: means any reasonable expenses incurred by any Indemnitee as a result of
a Claim or Claims made against any Indemnitee for Indemnifiable Events, including, without
limitation, attorneys’ fees and all other costs, expenses and obligations paid or incurred in
connection with investigating, defending, being a witness in or participating in (including on
appeal), or preparing to defend, be a witness in or participate in any Claim.

     (d) Fines: means any fine or penalty.

     (e) Indemnifiable Event: means any event or occurrence, occurring prior to or after
the date of this Agreement, for which any of the Partnerships is required to indemnify any of the
Indemnitees under any of the Partnership Agreements or applicable law.

     (f) Indemnitees: means the General Partners, Starwood and any other Persons entitled
to indemnification under any of the Partnership Agreements.

     (g) Losses: means any amounts or sums which Indemnitee is legally obligated to pay as
a result of a Claim or Claims made against Indemnitee for Indemnifiable Events including, without
limitation, damages, judgments and sums or amounts paid in settlement of a Claim or Claims, and
Fines.

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     (h) Person: means any individual, corporation, partnership, trust or other entity.

     2. Advancement.

     (a) The Partnerships shall be obligated to pay the Expenses of any Claim in advance of the
final disposition thereof.

     (b) All payments on account of the Partnerships’ indemnification obligations under this
Agreement shall be made promptly after Indemnitees’ written request therefore, but in no event
later than 10 days after such written request.

     3. Reimbursement. Each Indemnitee hereby expressly undertakes and agrees to reimburse
the Partnerships for all Losses and Expenses paid by the Partnerships in connection with any Claim
against such Indemnitee in the event and only to the extent that a determination shall have been
made by a court or arbitration panel in a final decision from which there is no further right to
appeal that such Indemnitee is not entitled to be indemnified by the Partnerships for such Losses
and Expenses pursuant to the terms of the Partnership Agreements or applicable law.

     4. Non-exclusivity, Etc. The rights of any Indemnitee hereunder shall be in addition
to any other rights such Indemnitee may have under any of the Partnership Agreements or applicable
law.

     5. Severability. In the event that any provision of this Agreement is determined by a
court or arbitration panel to require any Partnership to do or to fail to do an act which is in
violation of applicable law, such provision (including any provision within a single section,
paragraph or sentence) shall be limited or modified in its application to the minimum extent
necessary to avoid a violation of law, and, as so limited or modified, such provision and the
balance of this Agreement shall be enforceable in accordance with their terms to the fullest extent
permitted by law.

     6. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware applicable to agreements made and to be performed entirely
within such State.

     7. Counterparts. This Agreement may be signed in counterparts, each of which shall be
an original and all of which, when taken together, shall constitute one and the same instrument.

     8. Amendment; Waiver. No amendment, modification, termination or cancellation of this
Agreement shall be effective unless made in a writing signed by each of the parties hereto. No
waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

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

	 	 	 	 	 
	 	WESTIN HOTELS LIMITED PARTNERSHIP

 	 
	 	By:  	Westin Realty Corp., its General Partner
 	 
	 

	 	 	 	 	 
	 	By:  	/s/ Alan M. Schnaid
 	 
	 	 	Name:  	Alan M. Schnaid 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	WESTIN CHICAGO LIMITED PARTNERSHIP

 	 
	 	By:  	909 North Michigan Avenue Corporation, its General Partner
 	 
	 

	 	 	 	 	 
	 	By:  	/s/ Alan M. Schnaid
 	 
	 	 	Name:  	Alan M. Schnaid 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	ST. FRANCIS LIMITED PARTNERSHIP

 	 
	 	By:  	St. Francis Hotel Corporation., its General Partner
 	 
	 

	 	 	 	 	 
	 	By:  	/s/ Alan M. Schnaid
 	 
	 	 	Name:  	Alan M. Schnaid 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	WESTIN REALTY CORP.

 	 
	 	By:  	/s/ Alan M. Schnaid
 	 
	 	 	Name:  	Alan M. Schnaid 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	909 NORTH MICHIGAN AVENUE CORPORATION

 	 
	 	By:  	/s/ Alan M. Schnaid
 	 
	 	 	Name:  	Alan M. Schnaid 	 
	 	 	Title:  	Vice President 	 

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	 	ST. FRANCIS HOTEL CORPORATION

 	 
	 	By:  	/s/ Alan M. Schnaid
 	 
	 	 	Name:  	Alan M. Schnaid 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

 	 
	 	By:  	/s/ Alan M. Schnaid
 	 
	 	 	Name:  	Alan M. Schnaid 	 
	 	 	Title:  	Senior Vice President 	 
	 

5<PAGE>

                                                                    EXHIBIT 10.4

                                 ACKNOWLEDGMENT

      1. Dennis H. Nelson, currently employed by The Buckle, Inc. ("Company") of
Kearney, Nebraska, will be paid an annual salary of $785,000 for so long as the
employee is employed by the Company during the fiscal year ending January 28,
2006.

      2. In addition to the salary outlined in paragraph 1, above, a "Cash
Award" for the above fiscal year will be paid to you provided you are employed
by the Company on the last day of such fiscal year. The "Cash Award" will be
paid as part of the Incentive Plan which includes a Bonus Pool as Cash Incentive
for executives. This Bonus Pool will be calculated for the fiscal year based
upon dollars of growth in key performance categories compared to the Base Year
amounts, multiplied by the applicable percentage amounts as outlined in the Plan
and multiplied by the net income factor outlined in the plan (see Exhibit A to
the Company's 2005 Proxy Statement). The applicable percentage amounts per the
2005 Executive Incentive Plan include 8.5% of the increase in Same Store Sales,
5.0% of the increase in Gross Profit and 15.0% of the increase in Pre-bonus Net
Income. The Base Year amounts are determined using the immediately preceding
fiscal year for Same Store Sales and the prior three-year rolling average, with
the immediately preceding year receiving a 4:1 weighting over the other two
years included in the calculation, for both Gross Profit and Pre-Bonus Net
Income. Your percentage of the bonus pool has been pre-set for fiscal 2005 by
the compensation committee of the Board of Directors.

      No payment of a Cash Award for the year may be made until the Company's
key performance categories for the year are certified by the Compensation
Committee. You shall not be entitled to receive payment of a Cash Award unless
you are still in the employ of (and shall not have delivered notice of
resignation to) the Company on the last day of the fiscal year for which the
Cash Award is earned.

      The Cash Award will be paid on or before April 15 following the close of
the fiscal year. For calculating this Cash Award, "Pre-Bonus Net Income" shall
be defined as the Company's net income from operations after the deduction of
all expenses, excluding administrative and store manager percentage bonuses and
excluding income taxes, but including draws against such bonuses. Net income
from operations does not include earnings on cash investments. For this purpose,
net income shall be computed by the Company in accordance with the Company's
normal accounting practices, and the Company's calculations will be final and
conclusive.

      3. You were awarded 21,200 shares of restricted stock in The Buckle, Inc.
common stock pursuant to the 2005 Restricted Stock Plan as of February 22, 2005.
Restricted stock granted under the Plan will vest according to the terms of the
2005 Restricted Stock Plan and the terms of the separate Restricted Stock
Agreement dated as of February 10, 2005 between you and the Company, to which
Agreement reference is hereby made. Those terms include a performance feature
whereby the shares granted will vest over four years if an 8% increase in
Pre-Bonus Net Income is achieved. If the performance goal is met, the shares
will vest 20% upon certification by the compensation committee that such goal
was met, and then 20% at January 31, 2007, 30% on January 31, 2008 and 30% on
January 31, 2009. Those terms also provide that in the event that the foregoing
performance target is not met, the shares of Restricted Stock may still become
vested upon the attainment of a second performance feature which is based on the
Fair Market Value (as defined in the Restricted Stock Agreement) of the
Company's common stock. Shares may vest at the rate of 20% per year if the Fair
Market Value of the Company's Common Stock increases over the next 5 years at a
cumulative rate of 7.2% per year, commencing on the last day of the first fiscal
quarter of the current fiscal year. You must continue to be employed by the
Company on the date of vesting. The foregoing description of the vesting
features of the Restricted Stock granted to you is qualified in its entirety by
reference to the terms of the 2005 Restricted Stock Plan and the separate
Restricted Stock Agreement between you and the Company.

      4. You will be given a vehicle allowance of $17,000 to be paid quarterly
throughout the fiscal year. You are also allowed personal use of a corporate
owned aircraft for up to 30 hours this fiscal year.

      5. A credit limit of $3,500 has been established on your The Buckle charge
account, subject to annual change as determined by management. Please make sure
your charge account balance does not exceed this limit. You may have payments
made to your charge account via payroll withholding during the year.

                                        1
<PAGE>

      Management is committed to reviewing its policies continually.
Accordingly, the statements outlined above are subject to review and change at
any time, with or without notice.

      I understand I have the right to terminate my employment with the Company
at any time, with or without notice, and the Company retains the same right,
with or without cause or notice. I recognize, therefore, that I am an "at will"
employee.

      This acknowledgment supersedes any prior acknowledgment or agreement with
the Company. This acknowledgment does not constitute an agreement of employment
with the Company.

April 18, 2005
The Buckle, Inc.

Acknowledged by: /s/ DENNIS H. NELSON
                 -----------------------------
                     Dennis H. Nelson

                                        2

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