Document:

glgi_104.htm

Exhibit 10.4

 

BILL OF SALE AND ASSIGNMENT

THIS BILL OF SALE AND ASSIGNMENT (this “Assignment”), dated as of the 31st day of January, 2014, is entered into by and among Yorktown Management and Financial Services, L.L.C., an Oklahoma limited liability company (“Yorktown”), Greystone Manufacturing, L.L.C., an Oklahoma limited liability company (“Greystone Manufacturing”), Greystone Logistics, Inc., an Oklahoma corporation (“Greystone Logistics”), and Warren F. Kruger (“Kruger”).

RECITALS

A. Greystone Manufacturing is a wholly-owned subsidiary of Greystone Logistics.

B.  Kruger is the sole member of Yorktown.

C. Yorktown owes Greystone Manufacturing the aggregate amount of $3,750,084.53 (the “Greystone Accounts Receivable”).

D. Greystone Logistics owes Kruger the aggregate amount of $2,662,782.09, consisting of $794,710.86 in respect of compensation owed to Kruger and $1,868,071.23 in respect of a note payable owed to Kruger (collectively, the “Greystone Accounts Payable”).

E. The parties desire to offset the Greystone Accounts Receivable and the Greystone Accounts Payable on a dollar-for-dollar basis, in accordance with the terms and conditions of this Assignment, which results in a net balance owed by Yorktown of $1,087,302.44 (the “Offset Balance”).

F. Yorktown wishes to sell the Assets (as defined below) to Greystone Manufacturing, and Greystone Manufacturing wishes to purchase the Assets from Yorktown, in accordance with the terms and conditions of this Assignment.

AGREEMENT

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

1.  Transfer of Assets.  Yorktown hereby conveys, grants, sells, transfers, assigns, releases and delivers to Greystone Manufacturing all of Yorktown’s right, title and interest in and to the assets described on Schedule A attached hereto (collectively, the “Assets”).

2.  Offset and Purchase Price for the Assets.

(a) The parties agree that the Greystone Accounts Payable and the Greystone Accounts Receivable are hereby offset on a dollar-for-dollar basis, which results in a net balance owed by Yorktown in an amount equal to the Offset Balance.

(b)           The parties agree that the aggregate purchase price for the transfer of the Assets from Yorktown to Greystone Manufacturing pursuant to this Agreement shall be $2,400,000, which has been paid as follows:

(i) $1,000,000 has been paid in cash on the date hereof by Greystone Manufacturing to Yorktown for the Molding Machine (as defined on Schedule A);

(ii) $300,000 has been paid in cash on the date hereof by Greystone Manufacturing to Yorktown for the Crane (as defined on Schedule A); and

(iii) The purchase price for the Injection Molds (as defined on Schedule A) is that the Offset Balance is hereby deemed to be paid in full by Yorktown and an additional $12,697.56 has been paid in cash by Greystone Manufacturing to Yorktown on the date hereof.

  

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3.  Further Assurances.  Yorktown agrees from time to time, at the request of Greystone Manufacturing, and without further consideration, to execute, acknowledge and deliver such further instruments of transfer, bills of sale, assignments, transfers and conveyances and to take such other actions as Greystone Manufacturing may reasonably request in order more effectively to convey and transfer to and vest in Greystone Manufacturing the Assets hereby conveyed and assigned.

4.  Representations or Warranties.  Yorktown warrants to Greystone Manufacturing that Yorktown is the legal owner of the Assets and that the Assets are free of all liens, claims and other encumbrances. YORKTOWN HEREBY EXPRESSLY DISCLAIMS AND NEGATES ANY OTHER REPRESENTATION OR WARRANTY, WHETHER EXPRESSED OR IMPLIED, OF ANY KIND, INCLUDING WITHOUT LIMITATION RELATING TO THE CONDITION OF THE ASSETS (INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE), IT BEING THE INTENTION OF YORKTOWN AND GREYSTONE MANUFACTURING THAT THE ASSETS BE CONVEYED “AS IS, WHERE IS” IN THEIR PRESENT CONDITION AND STATE OF REPAIR EXCEPT AS EXPRESSLY PROVIDED OTHERWISE HEREIN.

5.   Governing Law.  This Assignment shall be governed by and construed in accordance with the substantive law of the State of Oklahoma without giving effect to the principles of conflicts of law thereof.

[Signatures appear on following page.]

 

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Assignment to be effective for all purposes as of the date first above written.

“Yorktown”

YORKTOWN MANAGEMENT AND

FINANCIAL SERVICES, L.L.C.

 

 By: /s/ Warren F. Kruger                                           

       Warren F. Kruger

       Manager

 

“Greystone Manufacturing”                                                      

GREYSTONE MANUFACTURING, L.L.C.

 

By: /s/ Warren F. Kruger                                           

      Warren F. Kruger

      Manager                                

 

“Greystone Logistics”

GREYSTONE LOGISTICS, INC.                                                                           

 

By: /s/ William W. Rahhal                                           

      William W. Rahhal

      Chief Financial Officer

 

“Kruger”

 

/s/ Warren F. Kruger                                           

Warren F. Kruger

  

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SCHEDULE A

ASSETS

The Assets are comprises of the items described below:

	
1.  

	
One Cincinnati Milacron Injection Molding Machine, model ML1760-1054, serial #H35A0300008 (the “Molding Machine”)

	
2.  

	
One Lift Systems heavy lift crane, model 45MBL, serial #MBL045001 (collectively, the “Crane”)

	
3.  

	
The following injection molds (collectively, the “Injection Molds”):

 

	
Serial #

	 	
Product ID

	 	
Description

	
N/A

	 	
RO.48.45

	 	
48X45 Monoblock Partial Lip/No Lip

	
3405

	 	
SPL.32.30.LEG

	 	
32X30 Bottom Mold

	
3333

	 	
TC.32X30

	 	
32X30 Top Cap Mold

	
3395

	 	
PF.36.36/PF.37.37.TOP

	 	
36X36 or 37X37 Top Pallet Mold

	
3390

	 	
PF.36.36/PF.37.37.LEG

	 	
36X36 or 37X37 Leg Pallet Mold

	
R10C6

	 	
LD.48.42

	 	
48X42 Monoblock with 4 rod configuration

	
N/A

	 	
GS.37.32.3r

	 	
37X32 Runner mold with 3 rod insertion points

	
N/A

	 	
GS.37.37.6r

	 	
37X37 Picture frame mold with 4 rod insertion points

	
7123

	 	
GS.44.30.KEG

	 	
44X30 Keg mold with 10 rod insertion points

	
6116

	 	
GS.48.40.6r

	 	
48X40 Picture frame rackable pallet with 5 rod insertion points

	
6114

	 	
GS.48.40.6r

	 	
48X40 Picture frame rackable pallet with 5 rod insertion points

	
6115

	 	
GS.48.40.6r

	 	
48X40 Picture frame rackable pallet with 5 rod insertion points

	
4007

	 	
GS.48.44.6r

	 	
48X44 Picture frame rackable mold

	
N/A

	 	
GS.48.40.NST.LD

	 	
48X40 Nestable Pallet (Greystone Nestable)

	
N/A

	 	
GS.48.40.NST.HD

	 	
48X40 Nestable Pallet (Greystone Grocery Nestable)

	
363248

	 	
GS.48.40.FDK.TP

	 	
48X40 Flat Deck top pallet mold

	
365362

	 	
GS.48.40.FDK.BT

	 	
48x40 Flat Deck 3 runner bottom mold

	
365332

	 	
GS.48.40.MDP.TP

	 	
48x40 Mid duty top pallet mold

	
364364

	 	
GS.48.40.MDP.TP

	 	
48x40 Mid duty pallet mold

	
365268

	 	
GS.48.40.MDP.TP

	 	
48x40 Mid duty pallet mold

	
364771

	 	
GS.48.40.MDP.TP

	 	
48x40 Mid duty pallet mold

	
363250

	 	
GS.48.40.MDP.BT

	 	
48X40 Mid Duty picture frame mold

 

 

 

4Exhibit 10.1 SMG 2014-02-05 8-K

Exhibit 10.1

THE SCOTTS COMPANY LLC
AMENDED AND RESTATED
EXECUTIVE INCENTIVE PLAN
(EFFECTIVE AS OF JANUARY 30, 2014)

TERMS AND CONDITIONS

		
	1.
	Objectives

1.1    Provide meaningful financial incentives consistent with and supportive of corporate strategies and objectives.

1.2    Encourage team effort toward achievement of corporate financial and strategic goals aligned with shareholders of The Scotts Miracle-Gro Company and our customers.

1.3    Contribute toward a competitive compensation program for all Participants.

		
	2.
	Definitions

2.1    “Administrator” means the Committee and, to the extent delegated by the Committee in accordance with Section 3.2, any delegate of the Committee.

2.2    “Affiliate” means all trades or businesses, whether or not incorporated, with which the Company would be considered a single employer under Code §§414(b) and (c).

2.3    “Board” means the Board of Directors of The Scotts Miracle-Gro Company.

2.4    “Committee” means the Compensation and Organization Committee of the Board.

2.5    “Company” means The Scotts Company LLC.

2.6    “Executive Officer” means an Executive Vice President or more senior level officer of The Scotts Miracle-Gro Company.

2.7    “Participant” means an associate of the Company or an Affiliate who is participating in the Plan for the applicable Plan Year.

2.8    “Performance Measure” means one or more of the Performance Measures listed in Section 5.2.

2.9    “Plan” means The Scotts Company LLC Amended and Restated Executive Incentive Plan as set forth herein, as it may be amended from time to time.

2.10    “Plan Year” means the fiscal year of the Company

		
	3.
	Administration

3.1    The Plan shall be administered by the Committee.  The Committee shall have complete authority to administer and interpret the Plan.  The Committee shall select the Performance Measures and the period during which performance will be measured.  The Committee shall prescribe any minimum, target and other performance objectives and, subject to Section 5.4, the potential payout at each level of performance and the actual incentive payment for each Participant.  The Committee’s determinations under the Plan (including, without limitation, the determination of the individuals to receive awards under the Plan, the amount of such awards and the terms and conditions of such awards) shall be final and need not be uniform among all Participants.  The express grant in the Plan of any specific power or authority of the Committee shall not be construed as limiting any power or authority of the Committee.  The members of the Committee shall not be liable for any act done in good faith with respect to the Plan.

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3.2    The Committee, in its discretion, may delegate to one or more of the Chief Executive Officer or the Executive Vice President, Global Human Resources of The Scotts Miracle-Gro Company or any other Executive Officers, all or part of the Committee’s authority and duties with respect to awards and the participation of eligible associates who are not Executive Officers.  The Committee may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the Committee’s delegate that were consistent with the terms of the Plan and the Committee’s prior delegation.  References in the Plan to the “Administrator” mean the Committee or its delegate; provided that the Committee cannot delegate its authority or duties with respect to Executive Officers.  References to the Committee refer only to the Committee, i.e., that specific authority or responsibility is not delegable.

3.3    The Committee shall approve the Performance Measures for Executive Officers within 90 days of the beginning of the performance period and before 25% of the performance period has passed.  No incentive payment may be paid to an Executive Officer unless the Committee certifies in writing that the Performance Measure objectives for the Plan Year have been achieved.

		
	4.
	Participation

4.1    Each Executive Officer is eligible to participate in the Plan.  Managers and more senior level associates of the Company and all Affiliates who are not Executive Officers are eligible to participate in the Plan if their participation is approved by the Administrator.

4.2    Except as otherwise determined by the Administrator, Participants must be actively employed in an eligible job/position for at least 13 consecutive weeks during the Plan Year.

4.3    Participant eligibility is based on active status during the Plan Year.  Periods of inactive status, such as short-term disability and other leaves of absence, will be reflected in the eligible earnings and payout calculation.

4.4    Except as otherwise determined by the Administrator, Participants must be employed on the last day of the Plan Year to be eligible for an incentive payment.

4.5    Except as otherwise determined by the Administrator, Participants whose employment terminates during the Plan Year, except in cases of retirement, will not be eligible for an incentive payment, prorated or otherwise.

4.6    Participants who retire during the Plan Year (as determined by the Administrator will be eligible for a prorated incentive payment.

4.7    Associates who hold an eligible position on a part-time basis are eligible to participate in the Plan.  All other terms and conditions of the Plan apply to such associates.

4.8    If a Participant moves to a different Plan-eligible position or otherwise becomes eligible for a different target percentage during the Plan Year, the Participant’s incentive payment will be prorated based on new metrics/target (if applicable) if the move is for an eligible period of at least 13 weeks in the Plan Year.

4.9    If a Participant moves to a position that is not Plan-eligible during the Plan Year, the Participant will be eligible for a prorated incentive payment (based on the Participant’s earnings during the Plan Year) provided other eligibility requirements are met.

4.10    Participants shall not have any right with respect to any award until an award shall, in fact, be paid to them.

4.11    The Plan confers no rights upon any associate to participate in the Plan or remain in the employ of the Company or any Affiliate.  Neither the adoption of the Plan nor its operation shall in any way affect the right of the associate or the Company or any Affiliate to terminate the employment relationship at any time.

		
	5.
	Plan Design, Performance Measures, and Payouts

5.1    The Plan is designed to recognize and reward performance against established financial targets.  The terms of awards for each Plan Year will be established by the Administrator and, among other things, may include:

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	(a)
	A corporate net income “funding trigger” below which no incentives will be paid to any Participant;

		
	(b)
	Up to five standard Performance Measures that will be used to measure performance during the Plan Year;

		
	(c)
	An earnings “multiplier” that will reinforce the importance of earnings by modifying the performance results against all of the other goals; and

		
	(d)
	Provisions that weight the Performance Measures for each particular group or unit to reflect the relative contribution that group or unit can make to those results.

5.2    The Performance Measures that may be used to measure performance during the period established by the Administrator shall be the following:

		
	(a)
	Net earnings or net income (before or after taxes);

		
	(b)
	Earnings per share (basic or diluted);

		
	(c)
	Net sales or revenue growth;

		
	(d)
	Net operating profit;

		
	(e)
	Return measures (including, but not limited to, return on assets, capital, invested capital, equity, sales, or revenue);

		
	(f)
	Cash flow (including, but not limited to, operating cash flow, free cash flow, cash flow return on equity, and cash flow return on investment);

		
	(g)
	Earnings before or after taxes, interest, depreciation, and/or amortization;

		
	(h)
	Gross or operating margins;

		
	(i)
	Productivity ratios;

		
	(j)
	Share price (including, but not limited to, growth measures and total shareholder return);

		
	(k)
	Expense targets;

		
	(l)
	Margins;

		
	(m)
	Operating efficiency;

		
	(n)
	Market share;

		
	(o)
	Customer satisfaction/service;

		
	(p)
	Product Fill Rate percent (% of orders filled on first delivery) or All-In Fill Rate percent (% calculated dollar fill based on potential) times Inventory Turns;

		
	(q)
	Working capital targets;

		
	(r)
	Economic value added or EVA® (net operating profit after tax minus the sum of capital multiplied by the cost of capital);

		
	(s)
	Developing new products and lines of revenue;

		
	(t)
	Reducing operating expenses;

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	(u)
	Developing new markets;

		
	(v)
	Meeting completion schedules;

		
	(w)
	Developing and managing relationships with regulatory and other governmental agencies;

		
	(x)
	Managing cash;

		
	(y)
	Managing claims against the Company, including litigation; and

		
	(z)
	Identifying and completing strategic acquisitions.

Any Performance Measure(s) may be used to measure the performance of the Company and/or an Affiliate as a whole or any business unit of the Company and/or an Affiliate or any combination thereof, as the Administrator may deem appropriate, or any of the above Performance Measures as compared to the performance of a group of comparator companies, or published or special index that the Administrator, in its sole discretion, deems appropriate.

5.3    Performance above and below target performance goals will be incrementally calculated so Participants will receive a payout calculated on a straight-line basis; provided, however, that the Administrator may determine, in its sole discretion, that no payouts will be made for performance below target performance goals.  Notwithstanding the foregoing or any other provision in the Plan to the contrary, the Administrator shall have the right, in its sole discretion, to reduce the amount otherwise payable to a Participant based on the Participant’s individual performance or any other factors that the Administrator deems appropriate.

5.4    The maximum amount of compensation that could be paid to any Participant in any Plan Year from this Plan is $6.0 million.

5.5    Unless a Participant has made a valid election under a deferred compensation plan maintained by the Company or an Affiliate no later than the date permitted under such plan, all awards under the Plan, including any prorated amounts described in Section 4.6, will be paid by the 15th day of the third month following the close of the applicable Plan Year.

		
	6.
	Employee Agreement and Forfeiture of Payment

6.1    Regardless of any other provision of this section and unless the Committee specifies otherwise, in order to participate in the Plan, a Participant must execute an Employee Confidentiality, Noncompetition, Nonsolicitation Agreement.

6.2    Furthermore, regardless of any other provision of this section and unless the Committee specifies otherwise, a Participant who breaches any part of that Employee Confidentiality, Noncompetition, Nonsolicitation Agreement will forfeit any future payment under the Plan and will also return to the Company or any Affiliate any monies paid out to the Participant under this Plan within the three years prior to said breach.  Any monies paid out to a Participant under this Plan also must be returned to the Company or any Affiliate if repayment is required under any recoupment or “clawback” policy adopted by the Company or an Affiliate.

6.3    By participating in this Plan, a Participant hereby consents to a deduction from any amount the Company or any Affiliate may owe the Participant (including amounts owed to the Participant as salary, wages or other compensation, fringe benefits, or vacation pay as well as any other amounts owed to the Participant by the Company or any Affiliate), to the extent of any amounts owed by the Participant to the Company or any Affiliate for any reason, including under this Section 6, whether or not it elects to make any set-off in whole or in part.  If the Company or any Affiliate does not recover the full amount the Participant owes it by means of set-off, calculated as set forth above in Section 6.2, the Participant agrees to pay immediately the unpaid balance to the Company, Affiliate or Subsidiary, as applicable.

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	7.
	Amendment and Termination

The Board reserves to itself the right to suspend the Plan, to terminate the Plan, and, to the extent allowed without shareholder approval, to amend the Plan.

		
	8.
	Code Section 409A

It is intended that this Plan comply with the short-term deferral exemption under Treasury Regulation §1.409A-1(a)(4), and this Plan will be interpreted, administered and operated in good faith accordingly.  Nothing herein shall be construed as an entitlement to or guarantee of any particular tax treatment to a Participant.

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