Document:

Exhibit 10.3

 

MCBC HOLDINGS, INC.

 

MANAGEMENT INCENTIVE PLAN

 

ARTICLE 1.

INTRODUCTION

 

1.1          Establishment. MCBC Holdings, Inc. (the “Company”) hereby establishes a plan of long-term compensation incentives for certain Qualified Executives which plan is known as the MCBC Holdings, Inc. Management Incentive Plan (the “Plan”).

 

1.2          Purpose. The purpose of the Plan is to advance the interests of the Company by allowing the Company and its Subsidiaries to attract, retain and motivate Qualified Executives by providing them with an opportunity to participate in the potential growth of the Company at the time of the Sale of the Company that is consistent with the long-term economic objectives of the Company and its shareholders.

 

1.3          Effective Date. This Plan is effective April 25, 2013 (the “Effective Date”) and will terminate on April 25, 2023 (the “Termination Date”) unless terminated earlier under Section 6.1.

 

1.4          ERISA Status. This Plan is intended to be an unfunded plan maintained primarily for the purpose of providing deferred compensation to the Participants. It is intended that, with respect to participation by Qualified Directors, ERISA will not apply to the Plan and that, with respect to participation by Qualified Employees, the Plan will be a “top-hat” pension exempt from certain provisions of ERISA as provided in Section 201(2), 301(a)(3) and 401(a)(1) of ERISA. The Plan shall be interpreted and administered in a manner that is consistent with and gives effect to the foregoing.

 

1.5          IRC Status. This Plan is intended to be a non-qualified deferred compensation arrangement that will comply in form and operation with the requirements of Section 409A of the Code. The Plan will be construed and administered in a manner that is consistent with and gives effect to such intention.

 

1.6         Definitions. As used in this Plan, the following terms shall have the meanings set forth below:

 

(A)         Account. “Account” means a schedule maintained in the Company’s books and records with respect to each Participant which records: (i) the Incentive Shares awarded to the Participant; (ii) the vested or unvested status of such Incentive Shares; and (iii) the amount of Notional Outstanding Shares from time to time. The Account is intended to have no monetary value.

 

(B)         Award Value. “Award Value” means the value, if any, of the vested Incentive Shares recorded in the Account as determined by the Board of Directors in its sole discretion at the time of the Sale of the Company by multiplying (i) the Participant’s vested Incentive Shares divided by the Notional Outstanding Shares by (ii) Plan Value.

 

 

(C)         Board of Directors. “Board of Directors” means the Board of Directors of the Company or, at the Board of Directors’ sole discretion, any committee established by the Board of Directors with authority over the Plan.

 

(D)         Code. “Code” means the Internal Revenue Code of 1986, as amended (including, when the context requires, all regulations, interpretations and rulings issued thereunder). Any reference to a specific provision of the Code includes a reference to that provision as it may be amended from time to time and any successor provision.

 

(E)         Company. “Company” means MCBC Holdings, Inc., a Delaware corporation.

 

(F)          Confidential Information. “Confidential Information” means all nonpublic knowledge, information or property relating to, or used or possessed by, the Company, and includes, without limitation, Trade Secrets, Inventions and innovations, patents, copyrights and works of authorship, all material representations, data, designs, ideas, concepts, drawings, plans, proposals, directions, renderings, models, likenesses, mock-ups, prototypes, and/or all derivations thereof, which are contained within, on or in the documents or things, created or owned by the Company or licensed to the Company by third parties; as well as all non-public information relating to the business methods, products, services, techniques, technical data, designs, processes, formulae, specifications, policies, procedures, financial data, technical know-how, business secrets, methods and procedures of manufacturing and/or operation, product specifications and designs, laminate schedules, research or development projects or the results thereof, business or technical plans and proposals, customer lists, contractual terms, client preferences, affairs and requirements, any information relating to past, present or prospective dealers, customers or clients of the Company, marketing information, and any other proprietary or confidential financial, business or technical information relating to the business operations or activities of the Company, including notes, extracts, memoranda prepared or directed to be prepared by the Participant based on any Confidential Information, regardless of whether such information is owned by the Company or licensed by the Company from third parties; all of which is deemed to be “Confidential Information” regardless of the form of media on or in which such Confidential Information is contained. Notwithstanding the preceding provisions, Confidential Information does not include any information that: (a) is or becomes publicly available through no fault of the Participant; (b) is rightfully known by the Participant without restriction at the time of its receipt from the Company; (c) is received from a third party who did not acquire or disclose such information by a wrongful or tortuous act; or (d) is or has been independently developed by the Participant without reference to any Confidential Information.

 

(G)         Credit Agreement. “Credit Agreement” means that certain Amended and Restated Credit Agreement among MCBC Holdings, Inc., the several banks and other financial institutions or entities from time to time parties thereto, and Wayzata Investment Partners LLC, as agent, dated as of June 30, 2009 (as the same may be further amended, supplemented, amended and restated or otherwise modified from time to time).

 

(H)         EBITDA. “EBITDA” shall have the meaning given to such term in the Credit Agreement.

 

2

 

(I)           ERISA. “ERISA” means the Employee Retirement Income Security Act of 1974, as amended (including, when the context requires, all regulations, ruling and authoritative interpretations issued thereunder).

 

(J)          Holder. “Holder” shall have the meaning given to such term in the Indenture.

 

(K)         Incentive Shares. “Incentive Shares” means the award, if any, of Incentive Shares granted to a Participant pursuant to Section 2.2.

 

(L)         Indenture. “Indenture” means that certain Indenture dated as of June 30, 2009, among MCBC Holdings, Inc., the several guarantors parties thereto, and Wells Fargo Bank, N.A., as agent (as the same may be amended, supplemented, amended and restated or otherwise modified from time to time).

 

(M)        Invention. “Invention” means any new or useful discovery or improvement relating to any technology, article, product, composition of matter, process, information system, computer hardware and software, computer application, or computer code in source or object form, design, device, biological material, or machinery, and all technical or business innovations, whether or not patentable or copyrightable, and all related know how, and any trademark or service mark, made or conceived by the Participant alone or with others: (a) during the period of the Participant’s employment with the Company which directly or indirectly relates to the past, present or anticipated business affairs of the Company at the time of the conception or which results from or is suggested by any work which the Participant has done or may do for the Company; or (b) within one (1) year after termination of the Participant’s employment with the Company which is derived from any Confidential Information.

 

(N)         LTM EBITDA. “LTM EBITDA” means EBITDA for the twelve (12) consecutive calendar months preceding the month in which the Sale of the Company occurs.

 

(O)         Notional Outstanding Shares. “Notional Outstanding Shares” means one hundred thousand (100,000) shares. The amount of Notional Outstanding Shares may be revised if the Board of Directors determines such revision is necessary or desirable for the proper administration of the Plan.

 

(P)          Participant. “Participant” means a Qualified Employee or Qualified Director designated by the Board of Directors from time to time during the term of the Plan to receive one (1) or more Incentive Shares granted under the Plan.

 

(Q)         Person. “Person” means any individual, corporation, partnership, limited liability company, limited liability partnership, joint stock company, joint venture, estate, association, trust, unincorporated organization or association, business trust, tenancy in common, governmental body or political subdivision thereof, or other entity or group.

 

(R)         Plan. “Plan” means this MCBC Holdings, Inc. Management Incentive Plan as it may be amended from time to time.

 

(S)          Plan Value. “Plan Value” shall be calculated by the Board of Directors in its sole discretion at the time of the Sale of the Company by reference to: (i) amounts received by the

 

3

 

Term Lenders under the Credit Agreement subsequent to the Effective Date and to be received by the Term Lenders in connection with the Sale of the Company; plus (ii) amounts received by the Holders under the Indenture subsequent to the Effective Date and to be received by the Holders in connection with the Sale of the Company; plus (iii) amounts received by the owners of the Company’s common stock subsequent to the Effective Date and to be received by the owners of the Company in connection with the Sale of the Company; less (iv) $35,000,000. Plan Value may be revised if the Board of Directors determines in its sole discretion that such revision is necessary or desirable for the proper administration of the Plan.

 

(T)         Qualified Director. “Qualified Director” means an individual who is a member of the Board of Directors of the Company, is not an officer or employee of the Company, and is identified by the Board of Directors as eligible to participate in the Plan.

 

(U)         Qualified Employee. “Qualified Employee” means an individual classified by the Company as a full-time, salaried employee (including, without limitation, officers who are also employees) of the Company or one or more Subsidiaries determined to be a member of a select group of key management or highly compensated employees of the Company or one or more Subsidiaries and identified by the Board of Directors, in its sole discretion, as eligible to participate in the Plan.

 

(V)         Qualified Executive. “Qualified Executive” means a Qualified Director or a Qualified Employee.

 

(W)        Sale of the Company. “Sale of the Company” means the sale or transfer, whether by merger or otherwise, in a single transaction, of (i) all, or substantially all, of the common stock of the Company, or (ii) all, or substantially all, of the assets of the Company and all of its Subsidiaries, provided that such sale or transfer under clauses (i) or (ii) is not to an affiliate or Subsidiary of the Company or an affiliate or subsidiary of the Company’s shareholders, and is a change in ownership or effective control within the meaning of Section 409A of the Code provided, however, that a Sale of the Company shall not include a dividend or other distribution of cash or other assets of the Company to the Company’s shareholders made with the proceeds of borrowed money, regardless of whether the borrowing incurred to finance such dividend or distribution was incurred prior to or after such dividend or distribution.

 

(X)         Subsidiary. “Subsidiary” means any corporation, partnership, limited liability company or similar business entity directly or indirectly owned by the Company.

 

(Y)         Termination of Employment. “Termination of Employment” with respect to a Participant who is a Qualified Employee means a termination of the employment relationship between the Qualified Employee and the Company or any Subsidiary (whether voluntary or involuntary) as determined in accordance with generally applicable corporate policies as in effect from time to time, including, without limitation, termination as a result of the Qualified Employee’s death, expiration or non-renewal of a Qualified Employee’s employment agreement, if any, with the Company or any Subsidiary, or otherwise, provided that such Termination of Employment must also constitute a “separation from service” within the meaning of Section 409A of the Code. A “Termination of Employment” also includes any other change in the Qualified Employee’s working relationship with the Company or any Subsidiary that constitutes

 

4

 

a “separation from service” under Section 409A of the Code. The Qualified Employee’s employment relationship will be treated as remaining intact while he or she is on military leave, sick leave, disability leave or other bona fide leave of absence (pursuant to which there is a reasonable expectation that the Qualified Employee will return to perform services) if the period of such leave does not exceed six (6) months, or if longer, so long as the Qualified Employee retains a right to reemployment with the Company or any of its Subsidiaries under applicable statutes or by contract. “Termination of Employment” with respect to a Participant who is a Qualified Director means a termination of a Qualified Director’s service with the Company as a member of the Board of Directors (by resignation or otherwise).

 

(Z)         Term Lender. “Term Lender” shall have the meaning given to such term in the Credit Agreement.

 

(AA) Trade Secret. “Trade Secret” means any information, including, without limitation, any formula, pattern, drawing, compilation, program, device, method, technique, computer security information, process, cost data, supplier lists or product or related information, or any Invention, directly or indirectly related to the past, present or anticipated business affairs of the Company, that derives value, actual or potential, from not being generally known to be public or to other persons who can obtain value from its disclosure or use and which is the subject of efforts that are reasonable under the circumstances to maintain such secrecy.

 

ARTICLE 2. 
  BENEFITS

 

2.1          Account. The Company will establish and maintain an Account for each Participant to record Incentive Shares granted pursuant to Section 2.2 and the vesting of such Incentive Shares.

 

2.2          Grant of Incentive Shares. Participants will be eligible to receive grants of Incentive Shares under the Plan. Subject to the Board of Directors’ ability to increase or reduce such amount from time to time, a total of fifteen thousand (15,000) Incentive Shares may be granted under the Plan. A grant shall be effective as of the date specified by the Board of Directors. Any Incentive Shares that are forfeited, surrendered or reclaimed shall be available for reissuance by the Company. All awards of Incentive Shares will be made in the sole discretion of the Board of Directors. A new award of Incentive Shares will be cumulative with previously granted Incentive Shares. The Board of Directors will provide the Participant with an Incentive Shares Award Notice And Acknowledgment Agreement (that must be acknowledged by the Participant) in a form substantially similar to Exhibit A hereto (an “Award Notice”) indicating the amount of such Participant’s award of Incentive Shares, including any vesting conditions of such Incentive Shares. The Award Notice may also contain restrictive covenants, a Participant’s agreement to which shall be a condition precedent to the award of Incentive Shares. Participants will be required to acknowledge that they have received, read and reviewed this Plan and been given an opportunity to ask questions regarding the terms and conditions of the Plan.

 

2.3          Vesting of Incentive Shares. All of a Participant’s unvested Incentive Shares will become vested according to the vesting schedule set forth in such Participant’s Award Notice upon a Sale of the Company which occurs while the Participant is continuously employed

 

5

 

by (or providing services to) the Company or any applicable Subsidiary provided that the Participant is in good standing with the Company or any applicable Subsidiary. Any fractional Incentive Share will be rounded up to the nearest whole Incentive Share, with total Incentive Shares vesting hereunder not exceeding the amount awarded as a result of such rounding convention. If a Sale of the Company has not occurred by the Termination Date, the Award Value will be reduced to zero, the Plan will terminate, and all rights under the Incentive Shares will cease.

 

2.4          Forfeiture of Incentive Shares and Award Value. In the event of a Termination of Employment (including due to a Participant’s resignation), the Participant shall immediately forfeit any and all rights and interests under the Plan with respect to vested and unvested Incentive Shares.

 

2.5          Adjustment. The Board of Directors, in its sole discretion, may adjust a Participant’s Incentive Shares or Award Value in the event of any capital contributions, distributions or dividends, or in the event of a liquidation, dissolution, sale, transfer, exchange, or other disposition of assets that affects Plan Value if the Board of Directors determines, in its sole discretion, that such adjustment is appropriate to prevent dilution or enlargement of the potential benefits made available under the Plan or with respect to any Incentive Shares.

 

ARTICLE 3.

DISTRIBUTION

 

3.1          Time of Distribution. Distribution of a Participant’s Award Value will be made following the Sale of the Company that occurs prior to the Termination Date; such distribution will be paid in a single lump sum payment within sixty (60) days of the date of the closing of a Sale of the Company (subject to applicable withholding pursuant to Section 6.3). Notwithstanding the foregoing, if multiple payments are scheduled to be made in connection with the Sale of the Company subsequent to the date of closing, then for so long as the Participant remains in good standing with the Company or any applicable Subsidiary, then the distribution of a Participant’s Award Value will be made on the same schedule and under the same terms and conditions as such payments are received (not to exceed a five-year period after the Sale of the Company).

 

ARTICLE 4.

SOURCE OF PAYMENTS; NATURE OF INTEREST

 

4.1          Source of Payments. Any amounts payable by the Company under this Plan constitute a general unsecured obligation of the Company and any such amounts will be paid by the Company from its general assets.

 

4.2          Nature of Participant’s Interest. Nothing contained in this Plan is to be construed as providing for assets to be held for the benefit of the Participants or any other Person or Persons to whom benefits are to be paid pursuant to the terms of this Plan, a Participant’s only interest under the Plan being the right to receive the benefits set forth herein. To the extent the Participant or any other Person acquires a right to receive benefits under this Plan, such right is no greater than the right of any unsecured general creditor of the Company.

 

6

 

4.3          Non-Assignability of Incentive Shares and Benefits. The Incentive Shares issued under this Plan and the benefits payable under this Plan (together with the right to receive future benefits) may not be anticipated, alienated, sold, transferred, assigned, pledged, encumbered or subjected to any charge or legal process.

 

ARTICLE 5.

ADMINISTRATION

 

5.1          Administration by Board of Directors. The Board of Directors has discretionary power and authority to interpret, construe, apply, enforce and otherwise administer this Plan and to act on behalf of the Company. Any determinations by the Board of Directors in connection with this Plan, including determinations of Award Value or Plan Value, shall be final and binding with respect to all Participants and beneficiaries. Any action taken by the Board of Directors in good faith is binding and conclusive upon all parties in interest and the Board of Directors will not be liable to any Person for any action taken or omitted to be taken in connection with the interpretation, construction, application, enforcement or other administration of this Plan, so long as such action or omission to act be made in good faith.

 

5.2          Claim Procedures.

 

(A)      Claim for Benefits. A claim for unpaid benefits under the Plan shall be made in writing to the Board of Directors. If the claim is denied in whole or in part, the Board of Directors shall notify the claimant of the adverse benefit determination within ninety (90) days after receipt of the claim. The ninety (90) day period for making the claim determination may be extended for ninety (90) days if the Board of Directors determines that special circumstances require an extension of time for determination of the claim, provided that the Board of Directors notifies the claimant, prior to the expiration of the initial ninety (90) day period, of the special circumstances requiring an extension and the date by which a claim determination is expected to be made. A denial shall be in writing and shall contain: (1) the specific reasons for the denial; (2) references to the specific provisions of the Plan (or other applicable Plan document) on which the denial is based; (3) a description of any additional material or information necessary to determine the allowance of the claim and an explanation of why such material or information is necessary; (4) an explanation of the Plan’s review procedure; and (5) a statement of the claimant’s right to bring a civil action under ERISA section 502(a) following a denial on review.

 

(B)       Request for Review. Within sixty (60) days after receipt of a written notice of denial of the claim, the claimant may file with the Board of Directors a written request for a review of the denial and may submit written comments, documents, records and other information relating to the claimed benefits. Any request for review must be filed within sixty (60) days after receipt of the denial.

 

(C)       Decision on Review. The Board of Directors shall render a decision on the claim review within sixty (60) days after receipt of a request for review. The sixty (60) day period for deciding the claim on review may be extended for sixty (60) days if the Board of Directors determines that special circumstances require an extension of time for determination of the claim, provided that the Board of Directors notifies the claimant, prior to the expiration of the initial sixty (60) day period, of the special circumstances requiring an extension and the date by

 

7

 

which a claim determination is expected to be made. The Board of Directors’ review of a denied claim shall take into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. A denial of a claim on review shall set forth in a manner calculated to be understood by the claimant: (1) the specific reasons for the denial; (2) references to the specific provisions of the Plan (or other applicable Plan document) on which the denial is based; (3) a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits; and (4) a statement of the claimant’s right to bring an action under ERISA section 502(a).

 

(D)       Limitations and Exhaustion. No claim shall be considered under this Section 5.2 unless it is filed with the Board of Directors within one (1) year after the date that the Participant knew (or reasonably should have known) of the general nature of the dispute giving rise to the claim. Every untimely claim shall be denied by the Board of Directors without regard to the merits of the claim. No suit may be brought by or on behalf of any Participant on any matter pertaining to this Plan unless the action is commenced in the proper forum within one (1) year from the earlier of (i) the date the claim is determined to first accrue, that is, Participant knew (or reasonably should have known) of the general nature of the dispute giving rise to the action, or (ii) the date the claim was denied. These administrative procedures are the exclusive means for resolving any dispute arising under this Plan. As to such matters, no Participant shall be permitted to litigate any such matter unless a timely claim has been filed under these administrative procedures and these administrative procedures have been exhausted, and determinations by the Board of Directors (including determinations as to whether the claim was timely filed) shall be afforded the maximum deference permitted by law.

 

8

 

5.3          Indemnification. The Company agrees to indemnify and hold harmless, to the extent permitted by law, each director, officer and employee of the Company and any Subsidiary against any and all liabilities, losses, costs and expenses (including legal fees) of every kind and nature that may be imposed on, incurred by, or asserted against such person at any time by reason of such person’s services in connection with the Plan, but only if such person did not act dishonestly or in bad faith or in willful violation of the law or regulations under which such liability, loss, cost or expense arises. The Company may make advance indemnification payments to such persons as costs are incurred. The Company has the right, but not the obligation, to select counsel and control the defense and settlement of any action for which a person may be entitled to indemnification under this provision.

 

ARTICLE 6.

MISCELLANEOUS

 

6.1          Amendment or Termination. The Company reserves the right to amend or terminate this Plan in its entirety at any time. No amendment or termination of the Plan will directly or indirectly reduce a Participant’s Award Value as of the effective date of such amendment or termination. The Plan will terminate in its entirety as of the date specified by the Company in a written instrument approved in advance or ratified by the Board of Directors and executed in the name of the Company. In no event will an amendment or termination of this Plan create an acceleration of payment of Participant’s Award Value.

 

6.2          Inurement; Assignment by Participant. This Agreement is binding upon and inures to the benefit of the Company and its successors and assigns, and the Participants, and their successors, heirs, executors and beneficiaries. Any assignment by a Participant of any rights hereunder shall be made only with the prior written consent of the Board of Directors, which consent may be withheld in the sole discretion of the Board of Directors.

 

6.3          Withholding. The Company retains the right to withhold from any benefit payment under this Plan and from any other wages payable to a Participant, any and all income, employment, excise and other taxes as the Company deems necessary.

 

6.4          No Employment or Shareholder Rights. Nothing in this Plan or the written notice of the grant of an Incentive Share, including any vesting requirement, (a) confers on a Qualified Employee any right to continued employment with the Company or any Subsidiary or employment with the Company or any Subsidiary in any particular position, (b) limits the Company’s or Subsidiary’s lawful right to change the terms and conditions of a Qualified Employee’s employment with the Company or Subsidiary, (c) provides any other Participant with any right to continue to provide services to the Company or any Subsidiary, including without limitation as a member of the Board of Directors, or (d) confers on any Participant any rights as a member of or shareholder in the Company or any Subsidiary.

 

6.5          No Waiver. The waiver by the Company, express or implied, of any right under this Plan or any failure to perform under this Plan does not constitute a waiver of any other right under this Plan or of any other failure to perform under this Plan by the other party.

 

9

 

6.6          Other Benefits. Except to the extent otherwise expressly provided under a specific benefit plan, practice, policy or procedure of the Company, neither amounts awarded pursuant to Article 2 nor amounts paid to a Participant pursuant to Article 3 constitute salary or compensation to a Participant for the purpose of computing benefits to which he or she may be entitled under any employee benefit plan, arrangement or policy. Furthermore, the provisions of this Plan supersede any rights a Participant may have under any similar plan or policy with respect to long-term or incentive compensation offered by the Company, including but not limited to the Company’s 2010 Equity Incentive Compensation Plan.

 

6.7          No Warranties Regarding Tax Treatment. The Company makes no warranties regarding the tax treatment to the Participant of any awards or payments made pursuant to the Plan, including, without limitation, any potential additional income tax, payroll tax or excise tax that may be owed by a Participant pursuant to Code Sections 409A or 280G, and the Participant will hold the Company and its shareholders, officers, directors, employees, agents and advisors harmless from any liability resulting from any taxes or tax position taken by the Company in good faith in connection with this Plan.

 

6.8          Notice. All notices, requests, elections, demands and all other communications required or permitted under this Plan must be in writing and will be deemed to have been duly given when delivered personally or received by certified or registered mail, return receipt requested, postage prepaid.

 

6.9          Severability. If any term or provision of this Plan or the application hereof to any Person or circumstance is to any extent invalid or unenforceable, the remainder of this Plan or the application of such term or provision to the Persons or circumstances other than those as to which it is held invalid or unenforceable will not be affected thereby, and each term and provision of this Plan will be valid and enforceable to the fullest extent permitted by law.

 

6.10        Governing Law. To the extent that state law is not preempted by the provisions of ERISA, or any other laws of the United States, all questions arising in connection with this Plan, including, without limitation, those pertaining to construction, validity, effect, enforcement and remedies, will be determined in accordance with the internal, substantive laws of the State of Tennessee without regard to the conflict of laws rules.

 

6.11        Confidentiality. Each Participant agrees to hold the terms of this Plan in strict confidence and agrees not to disclose the terms of this Plan, or the awarding of any Incentive Shares under the Plan, to any Person other than such Participant’s immediate family, attorney or tax professional. Any violation of this provision by a Participant shall result in the immediate forfeiture of any Incentive Shares held by such Participant whether vested or unvested.

 

6.12        Headings. The headings of articles and sections are included solely for convenience of reference; if there is a conflict between the heading and the text of this Plan, the text will control.

 

10

 

The Company hereby certifies that this Plan was duly adopted effective as of the Effective Date by the Company and approved by the Board of Directors the Company.

 

	
 
    	
MCBC HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Chris Keenan
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Chris Keenan
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Management Incentive Plan]

 

11

 

Exhibit A

 

 

MCBC HOLDINGS, INC.

 

MANAGEMENT INCENTIVE PLAN

 

INCENTIVE SHARES AWARD NOTICE AND ACKNOWLEDGEMENT AGREEMENT

 

	
To:
    	
Participant’s
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Participant’s
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
From:
    	
 
    	
The Board of Directors   of MCBC Holdings, Inc.
    
	
 
    	
 
    	
 
    
	
Date   of Grant:
    	
April 25, 2013
    
	
 
    	
 
    	
 
    
	
Re:
    	
 
    	
Grant of Incentive   Shares
    

 

1.                                      Grant of Incentive Shares. Pursuant to Section 2.2 of the MCBC Holdings, Inc. Management Incentive Plan (the “Plan”), the Board of Directors hereby notifies you that you have been selected to be a Participant in the Plan. Capitalized terms used in this Incentive Shares Award Notice And Acknowledgment Agreement (the “Award Notice”) that are not defined herein have the meaning set forth in the Plan.

 

2.                                      Grant Date. The Incentive Shares awarded to you hereunder are issued effective as of April 25, 2013 (the “Grant Date”).

 

3.                                      Number of Shares. Pursuant to Section 2.2 of the Plan, the number of Incentive Shares (as defined in the Plan) being granted to you hereunder is XXX Incentive Shares.

 

4.                                      Vesting. The Incentive Shares awarded hereunder will vest according to the below, non-cumulative vesting schedule in accordance with Section 2.3 of the Plan:

 

A.            a total of 25% of the Incentive Shares will vest if LTM EBITDA is below $12,500,000;

 

B.            a total of 50% of the Incentive Shares shall vest if LTM EBITDA is between $12,500,000 and $14,999,999;

 

C.            a total of 75% of the Incentive Shares shall vest if LTM EBITDA is between $15,000,000 and $17,499,999; and

 

A-1

 

D. 100% of the Incentive Shares shall vest if LTM EBITDA exceeds $17,500,000.(1)

 

5.                                      Reference to Plan. This Award Notice and the rights and obligations of the Participant hereunder are subject to the terms and conditions of the Plan. The terms and conditions of the Plan are incorporated herein by reference to the same extent as if fully set forth herein.

 

6.                                      No Interest as Owner or Employment Agreement. Pursuant to Section 6.4 of the Plan, the Participant acknowledges that this Award Notice creates no equity ownership rights in the Company or any Subsidiary and no rights to employment with the Company or any Subsidiary.

 

7.                                      Conflict with Plan. This Award Notice shall be construed consistent with the terms of the Plan but, in the event of ambiguities or inconsistencies, the terms and conditions of the Plan shall control. The provisions of this Award Notice shall be binding upon and inure to the benefit of the Company, the Participant and their respective successors-in-interest, permitted assigns and legal representatives. Furthermore, the Participant acknowledges that the provisions of the Plan and this Award Notice supersede any rights the Participant may have under any other similar plan or policy with respect to long-term incentive compensation offered by the Company, including but not limited to the Company’s 2010 Equity Incentive Compensation Plan.

 

8.                                      Restrictive Covenants. By executing this Award Notice, and as a condition to not only participating in the Plan and the receipt of Incentive Shares, but also the Participant’s continued employment with the Company, the Participant agrees to comply with the following provisions:

 

a.              Covenant Not To Compete. The Participant agrees that, during the term of the Participant’s employment with the Company and for a period of one (1) year from the date of termination of the Participant’s employment with the Company (whether such termination is with or without cause or results from the Participant’s resignation) (the “Restricted Period”), the Participant shall not, directly or indirectly engage in or with any person, entity, business or activity (whether as an owner, operator, manager, employee, officer, director consultant, advisor, representative or otherwise) in any geographic area where the Company has conducted business within the past twelve (12) months or plans to be doing business within the next eighteen (18) months, which directly or indirectly competes with the business of the Company as now conducted or as conducted as of the date of termination (a “Competing Business”). For purposes of this Award Notice, the term “Competing Business” for purposes of whether a person or entity “directly or indirectly competes with the business of the

 

(1) For example, if a Participant receives 1,000 Incentive Shares and LTM EBITDA at the time of the Sale of the Company is: (A) $10,000,000, 250 Incentive Shares (or 25% of the Incentive Shares granted) will vest; (B) $13,000,000, 500 Incentive Shares (or 50% of the Incentive Shares) will vest; (C) $17,000,000, 750 Incentive Shares (or 75% of the Incentive Shares) will vest; or (D) $18,000,000, 1,000 Incentive Shares (or 100% of the Incentive Shares) will vest. These examples are for illustrative purposes only.

 

A-2

 

Company as now conducted” shall mean a person or entity which manufactures, sells and/or distributes inboard boats which are primarily designed for towed water sports.

 

b.              Covenant Not To Solicit. The Participant shall not, directly or indirectly, during the Restricted Period: (a) take any action to solicit, canvass or divert any business (or potential business) or clients or customers (or potential clients or potential customers) away from the Company or accept any business from any of the Company’s current or former customers on behalf of any Competing Business; (b) solicit, induce or attempt to induce any customers, potential customers, clients, potential clients, suppliers, agents or other persons under contract or otherwise having a business relationship with the Company, to discontinue, reduce or alter any such association or business with or from the Company; and/or (c) solicit, induce or attempt to induce any person in the employment of the Company or any consultant to the Company, or who were employees or consultants of the Company during the six (6) month period preceding the date of the Participant’s termination, to (i) terminate such employment, or consulting arrangement, (ii) accept employment, or enter into any consulting arrangement (whether as an employee, consultant, agent, independent contractor or otherwise), with anyone other than the Company, and/or (iii) interfere with any of the customers, suppliers, or clients of the Company in any manner, or which would adversely affect the business of the Company in any manner. For purposes of this paragraph, a “potential client” or a “potential customer” shall mean a person or entity that the Company: (a) is soliciting or has targeted for solicitation in the reasonably foreseeable future as of the termination date of the Participant’s employment with the Company; and/or (b) has, at any time within the six (6) month period prior to the termination date of the Participant’s employment with the Company, been soliciting for any current or contemplated product lines or services offered by the Company. “Potential business” shall mean any current or reasonably foreseeable commercial activity or any current or reasonably foreseeable commercial opportunities associated in any way with the products of the Company.

 

c.               Covenant To Maintain Confidential Information. During the period of the Participant’s employment with the Company, and after the termination thereof for any reason, the Participant agrees that, because of the valuable nature of the Confidential Information, the Participant shall use the Participant’s best efforts to maintain and protect the secrecy and confidentiality of the Confidential Information. Without in any manner limiting the generality of the foregoing obligation, the Participant agrees that the Participant shall not, directly or indirectly, undertake or attempt to undertake any of the following activities: (i) the disclosure of any Confidential Information to any other person or entity; (ii) the use of any Confidential Information for the Participant’s own purposes; (iii) making any copies, duplicates or reproductions of any Confidential Information; (iv) authorizing or permitting any other person or entity to use, copy, disclose, publish or distribute any Confidential Information; or (v) any activity the Company is prohibited from undertaking or attempting to undertake by any of its present or future clients, customers, suppliers, vendors, consultants, agents or contractors.

 

A-3

 

d.              Record Keeping; Return of Confidential Information. The Participant further agrees to keep adequate written records of all Inventions made by the Participant, including notebooks, sketches, program listings and the like, which are the property of the Company. The Participant also agrees not to retain or remove from the Company’s premises any records, files or other documents or copies thereof or any other Confidential Information whatsoever, and the Participant agrees to surrender same to the Company, wherever such Confidential Information is located, upon three (3) days’ request from the Company, or immediately upon termination of the Participant’s employment with the Company for any reason.

 

e.               Covenant Not To Disparage. The Participant agrees not to disparage the Company, any of its products or practices, or any of its directors, officers, employees, agents, representatives, equity holders or affiliates, either orally or in writing, at any time; provided that the Participant may confer in confidence with the Participant’s legal representatives and make truthful statements as required by law.

 

f.                Interpretation; Severability. The various covenants and provisions of this Section 8 are intended to be severable and to constitute independent and distinct binding obligations. In the event the terms of this Section 8 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action. To the extent a court of competent jurisdiction determines that any provision of this Section 8 shall be deemed severed in its entirety or shall otherwise be modified, such determination shall not impair the validity of any other covenant or provision or part thereof and shall not impact or otherwise prevent the forfeiture of any and all rights under this Award Notice by the Participant pursuant to the Plan. Any breach or violation by the Participant of the provisions of this Section 8 shall toll the running of any time periods set forth in this Section 8 for the duration of any such breach or violation.

 

g.               Entire Agreement. To the extent the Participant is not subject to more restrictive covenants with the Company, the provisions of this Section 8 constitute the entire agreement between the Company and the Participant with respect to restrictive covenants, and supersede all prior agreements, both oral and written, between the parties with respect to such restrictive covenants. In the event that the Participant is subject to more restrictive covenants with the Company, the more restrictive provisions shall control, to the extent enforceable, and shall be treated as if fully restated herein. The Participant expressly acknowledges that, as used in this Section 8, the term “Company” shall include the Company, its parent and related entities, and any of its direct or indirect subsidiaries.

 

9.                                      Injunctive Relief. The Participant agrees that the Company has a legitimate business interest to protect justifying the restrictive covenants set forth in Section 8. Such

 

A-4

 

legitimate business interests include: (i) trade secrets; (ii) valuable confidential business information that does not otherwise qualify as a trade secret; (iii) substantial relationships with prospective or existing customers; and (iv) customer goodwill. The Participant recognizes and acknowledges that a breach of the covenants contained in Section 8 will cause irreparable damage to the Company and its goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the remedies at law for any such breach will be inadequate. The Participant further acknowledges that the enforcement of the covenants set forth above will not in any manner preclude the Participant, in the event of termination, from becoming gainfully employed in such manner and to such extent as to provide a standard of living for the Participant, and Participant’s dependents, of at least the sort and fashion to which the Participant has become accustomed and may expect. Accordingly, the Participant agrees that in the event of a breach or an alleged or threatened breach of any of the covenants contained in Section 8, in addition to any other remedy which may be available at law or in equity, the Company will be entitled to specific performance and injunctive relief in order to enforce or prevent any violations of the provisions hereof. Participant hereby waives any right to require the Company to post a bond, cash or other surety for such injunctive relief, and further agrees that he/she will not oppose the Company’s petition for injunctive relief on grounds that monetary damages are sufficient and that equitable relief is therefore not warranted, and Participant hereby waives any such defense.

 

10.                          Survival. The provisions of this Award Notice shall survive the expiration or termination of the award of Incentive Units, in each case for the periods set forth above.

 

11.                          Miscellaneous.

 

a.              Applicable Law. This Agreement and any conflicts arising hereunder or related hereto shall be governed by, and construed under, the laws of the State of Tennessee, all rights and remedies being governed by said laws, regardless of the laws that might otherwise govern under applicable principles, to the fullest extent permitted by law, of conflicts of laws.

 

b.              Jurisdiction. THE PARTICIPANT HEREBY SUBMITS TO THE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TENNESSEE, NORTHERN DIVISION, SITTING IN KNOXFILLE, TENNESSEE AND OF ANY TENNESSEE STATE COURT IN KNOX COUNTY AND BY THE EXECUTION AND DELIVERY OF THIS AGREEMENT, THE PARTICIPANT ACCEPTS FOR HIMSELF OR HERSELF THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND IRREVOCABLY CONSENTS TO THE JURISDICTION OF SUCH COURTS (AND THE APPROPRIATE APPELLATE COURTS) IN ANY SUCH PROCEEDINGS, AND WAIVES ANY OBJECTION TO VENUE LAID THEREIN.

 

c.               Waiver of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY LAW, THE PARTICIPANT WAIVES ANY AND ALL RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY MATTERS HEREUNDER.

 

A-5

 

12.                               Acknowledgement. By executing this Award Notice, the Participant acknowledges that the covenants set forth above are of special importance to the Company and are a substantial inducement to the Company to (i) provide for Participant’s participation in the Plan, (ii) grant Incentive Units under this Award Notice, and (iii) continue Participant’s employment by (or service to) the Company. Further, by executing this Award Notice, the Participant acknowledges he or she has received a copy of the Plan, has read the terms and provisions of the Plan, has had an opportunity to consult with his or her legal advisor, and has been given an opportunity to ask questions of or request additional information from the Company or the Board of Directors.

 

 

	
 
    	
MCBC HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
A Member of the Board of Directors
    
	
 
    	
 
    	
 
    

 

	
Acknowledged and   accepted by:
    	
 
    
	
 
    	
 
    
	
PARTICIPANT
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    

 

A-6Exhibit 10.9

 

INDEMNITY AGREEMENT

 

This Indemnification Agreement (“Agreement”) is made as of [·], 2015 by and between MCBC Holdings, Inc., a Delaware corporation (the “Company”), and                (“Indemnitee”).

 

RECITALS

 

WHEREAS, highly competent persons have become more reluctant to serve corporations as directors or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;

 

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified individuals, the Company will provide certain indemnification protections to protect persons serving the Company and its subsidiaries from certain liabilities.  Indemnitee may be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (“DGCL”).  The DGCL expressly provides that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification;

 

WHEREAS, the uncertainties relating to indemnification have increased the difficulty of attracting and retaining such persons;

 

WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

 

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified;

 

WHEREAS, Indemnitee may not be willing to serve as a director without adequate protection, and the Company desires Indemnitee to serve in such capacity.  Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that he be so indemnified; and

 

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

 

Section 1.                                           Services to the Company.  Indemnitee agrees to serve as a director of the Company.  Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in such position.  This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee.  Indemnitee specifically acknowledges that Indemnitee’s employment with the Company (or any of its subsidiaries or any Enterprise), if any, is at will, and the Indemnitee may be discharged at any time for any reason, with or without cause, except as may be otherwise provided in any written employment contract between Indemnitee and the Company (or any of its subsidiaries or any Enterprise), other applicable formal severance policies duly adopted by the Board, or, with respect to service as a director or officer of the Company, by the Company’s Certificate of Incorporation, the amended and restated bylaws of the Company (the “Bylaws”), and the DGCL.  The foregoing notwithstanding, this Agreement shall continue in force after Indemnitee has ceased to serve as director of the Company.

 

Section 2.                                           Definitions.  As used in this Agreement:

 

(a)                                 “Corporate Status” describes the status of a person who is or was a director, officer, employee or agent of the Company or of any other corporation, partnership or joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the request of the Company.

 

(b)                                 “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

 

(c)                                  “Enterprise” shall mean the Company and any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, employee, agent or fiduciary.

 

(d)                                 “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding.  Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent.  Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

(e)                                  “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent:  (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing,

 

 

the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.  The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

 

(f)                                   The term “Proceeding” shall include any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative or investigative nature, in which Indemnitee was, is or will be involved as a party or otherwise by reason of the fact that Indemnitee is or was a director or officer of the Company, by reason of any action taken by him or of any action on his part while acting as director or officer of the Company, or by reason of the fact that he is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, in each case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement of expenses can be provided under this Agreement; except one initiated by a Indemnitee to enforce his rights under this Agreement.

 

(g)                                  Reference to “other enterprise” shall include employee benefit plans; references to “fines” shall include any excise tax assessed with respect to any employee benefit plan; references to “serving at the request of the Company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in manner “not opposed to the best interests of the Company” as referred to in this Agreement.

 

Section 3.                                           Indemnity in Third-Party Proceedings.  The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 3, Indemnitee shall be indemnified against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal proceeding had no reasonable cause to believe that his conduct was unlawful.

 

 

Section 4.                                           Indemnity in Proceedings by or in the Right of the Company.  The Company shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 4, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company.  No indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that the Delaware Court of Chancery or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.

 

Section 5.                                           Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provisions of this Agreement, to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him in connection therewith.  If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter.  If the Indemnitee is not wholly successful in such Proceeding, the Company also shall indemnify Indemnitee against all Expenses reasonably incurred in connection with a claim, issue or matter related to any claim, issue, or matter on which the Indemnitee was successful.  For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

Section 6.                                           Indemnification For Expenses of a Witness.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.

 

Section 7.                                           Additional Indemnification.

 

(a)                                 Notwithstanding any limitation in Sections 3, 4, or 5, the Company shall indemnify Indemnitee to the fullest extent permitted by law if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee in connection with the Proceeding.

 

(b)                                 For purposes of Section 7(a), the meaning of the phrase “to the fullest extent permitted by law” shall include, but not be limited to:

 

 

i.                                          to the fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL, and

 

ii.                                       to the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

 

Section 8.                                           Exclusions.  Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in connection with any claim made against Indemnitee:

 

(a)                                 for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or

 

(b)                                 for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory law or common law; or

 

(c)                                  in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board of Directors of the Company authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

 

 

Section 9.                                           Advances of Expenses.  Notwithstanding any provision of this Agreement to the contrary, and except as provided herein, the Company shall advance the Expenses incurred by Indemnitee in connection with any Proceeding within 30 days after the receipt by the Company of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding.  Advances shall be unsecured and interest free.  Advances shall be made without regard to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement.  Advances shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed.  The Indemnitee shall qualify for advances upon the execution and delivery to the Company of this Agreement which shall constitute an undertaking providing that the Indemnitee undertakes to repay the advance to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company.  This Section 9 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 8. In addition, and notwithstanding the foregoing, to the extent the Indemnitee is an officer of the Company and the Disinterested Directors, by majority vote, determine that the Indemnitee has acted in bad faith or engaged in any activity which is inimical, contrary or harmful to the interests of the Company, advancement of Expenses shall not be mandatory but rather shall be at the discretion of the Company and on such terms and conditions as the Company may require.

 

Section 10.                                    Procedure for Notification and Defense of Claim.

 

(a)                                 To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification, not later than thirty (30) days after receipt by Indemnitee of notice of the commencement of any Proceeding.  The omission to notify the Company will not relieve the Company from any liability which it may have to Indemnitee otherwise than under this Agreement.  The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.

 

(b)                                 The Company will be entitled to participate in the Proceeding at its own expense.

 

Section 11.                                    Procedure Upon Application for Indemnification.

 

(a)                                 Upon written request by Indemnitee for indemnification pursuant to the first sentence of Section 10(a), a determination, if required by applicable law, with respect to Indemnitee’s entitlement to indemnification shall be made in the specific case: (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee or (D) if so directed by the Board, by the stockholders of the Company; and, if it is so determined that Indemnitee is

 

 

entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination.  Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.  Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

 

(b)                                 In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 11(a) hereof, the Independent Counsel shall be selected as provided in this Section 11(b).  The Independent Counsel shall be selected by the Board of Directors, and the Company shall give written notice to Indemnitee advising him of the identity of the Independent Counsel so selected.  Indemnitee may, within 10 days after such written notice of selection shall have been given, deliver to the Company a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit.  If, within 20 days after submission by Indemnitee of a written request for indemnification pursuant to Section 10(a) hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Indemnitee to the Company’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the Court or by such other person as the Court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 11(a) hereof.  Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 13(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

 

Section 12.                                    Presumptions and Effect of Certain Proceedings.

 

(a)                                 In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption.  Neither the failure of the Company (including by its directors or independent legal counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable

 

 

standard of conduct, nor an actual determination by the Company (including by its directors or independent legal counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

 

(b)                                 If the person, persons or entity empowered or selected under Section 11 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 12(b) shall not apply (i) if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 11(a) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination the Board of Directors has resolved to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 11(a) of this Agreement.

 

(c)                                  The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.

 

(d)                                 Reliance as Safe Harbor.  For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with the reasonable care by the Enterprise.  The provisions of this Section 12(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

 

 

(e)                                  Actions of Others.  The knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

 

Section 13.                                    Remedies of Indemnitee.

 

(a)                                 In the event that (i) a determination is made pursuant to Section 11 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 9 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 11(a) of this Agreement within 45 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 5 or 6 or the last sentence of Section 11(a) of this Agreement within ten (10) days after receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant to Section 3, 4 or 7 of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication by a court of his entitlement to such indemnification or advancement of Expenses.  Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association.  Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 13(a); provided, however, that the foregoing clause shall not apply in respect of a proceeding brought by Indemnitee to enforce his rights under Section 5 of this Agreement.  The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

 

(b)                                 In the event that a determination shall have been made pursuant to Section 11(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 13 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.  In any judicial proceeding or arbitration commenced pursuant to this Section 13 the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

 

(c)                                  If a determination shall have been made pursuant to Section 11(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 13, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

 

(d)                                 The Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 13 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.  The Company shall indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request

 

 

therefore) advance such expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advance of Expenses from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of Expenses or insurance recovery, as the case may be.

 

Section 14.                                    Non-exclusivity; Survival of Rights; Insurance; Subrogation.

 

(a)                                 The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise.  No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.  To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

 

(b)                                 To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies.  If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

 

(c)                                  In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

(d)                                 The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable (or for which advancement is provided hereunder)

 

 

hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

 

(e)                                  The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise.

 

Section 15.                                    Duration of Agreement.  This Agreement shall continue until and terminate upon the later of: (a) 10 years after the date that Indemnitee shall have ceased to serve as a director of the Company or (b) 1 year after the final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 13 of this Agreement relating thereto.  This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his heirs, executors and administrators.

 

Section 16.                                    Severability.  If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

 

Section 17.                                    Enforcement.

 

(a)                                 The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company.

 

(b)                                 This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof.

 

 

Section 18.                                    Modification and Waiver.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by the parties thereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver.

 

Section 19.                                    Notice by Indemnitee.  Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder.  The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise.

 

Section 20.                                    Notices.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given (a) if delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:

 

(a)                                 If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide to the Company.

 

(b)                                 If to the Company to

 

MCBC Holdings, Inc.

100 Cherokee Cove Drive

Vonore, Tennessee 37885

 

or to any other address as may have been furnished to Indemnitee by the Company.

 

Section 21.                                    Contribution.  To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

 

Section 22.                                    Applicable Law and Consent to Jurisdiction.  This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 10(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the “Delaware Court”), and not in any other state or federal court in the United States of America or any court in any other country, (ii)

 

 

consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) appoint, to the extent such party is not otherwise subject to service of process in the State of Delaware, irrevocably Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808 as its agent in the State of Delaware as such party’s agent for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

 

Section 23.                                    Identical Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.  Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

 

Section 24.                                    Miscellaneous.  Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.  The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written.

 

 

	
MCBC   Holdings, Inc.
    	
INDEMNITEE
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
Name:
    
	
Officer:
    	
Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}]]