UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported) October 27, 2015
LINDBLAD EXPEDITIONS HOLDINGS, INC.
(Exact name of registrant as specified in
its charter)
Delaware |
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001-35898 |
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27-4749725 |
(State or other jurisdiction
of incorporation) |
|
(Commission
File Number) |
|
(IRS Employer
Identification No.) |
96 Morton Street, 9th Floor, New York, New York |
|
10014 |
(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number including
area code: (212) 261-9000
(Former name or former address, if changed
since last report)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230 .425) |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 5.02. Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On October 27, 2015, Lindblad
Expeditions Holdings, Inc. (the “Company”) appointed John T. McClain as the Company’s new Chief Financial Officer
effective November 10, 2015. In connection with the appointment of Mr. McClain, Ian Rogers, who had been serving as the Company’s
Chief Financial Officer, Chief Operating Officer and Vice President, will continue with the Company as Chief Operating Officer
and Vice President effective November 10, 2015.
Mr. McClain, age 54, previously
served as the chief financial officer of The Jones Group Inc., a leading global designer, marketer and wholesaler of over 25 brands,
from July 2007 until the sale of the company to Sycamore Partners in April 2014. From April 2014 to August 2014,
he continued to provide Senior Advisor services related to financial operations to The Jones Group Inc. Mr. McClain has served
on the board of Nine West Holdings since April 2014, the board and audit committee of Lands’ End since May 2014 and as a
trustee of Seritage Growth Properties since June 2015. Mr. McClain has also held a number of roles at Avis Budget Group, Inc.
formerly Cendant Corporation. He joined Cendant Corporation in September 1999, serving as the Senior Vice President, Finance &
Corporate Controller until 2006. From July 2006 to 2007, Mr. McClain served as the chief accounting officer of Avis and
chief operating officer of Cendant Finance Holdings. Mr. McClain previously held leadership roles at Sirius Satellite Radio
Inc. and ITT Corporation.
In connection with Mr.
McClain’s appointment, the Company entered into an employment agreement with Mr. McClain for an initial term of four years
pursuant to which he was provided with the following compensation arrangements: (i) an initial annual base salary of $425,000;
(ii) an annual bonus opportunity through an incentive bonus program established by the Company’s compensation committee,
with bonuses to be targeted at 75% of base salary; (iii) an annual equity incentive award to be targeted at 100% of base salary,
subject to the discretion of the Company’s compensation committee and (iv) a grant of stock options to purchase 300,000 shares
of the Company’s common stock vesting annually pro rata over a four-year period under the Company’s 2015 Long-Term
Incentive Plan.
If Mr. McClain’s
employment is terminated without “cause” or for “good reason” prior to the end of the employment period
he will be entitled to (i) cash, payable in equal installments over a twelve month period, equal to (A) his base salary (at the
highest level in effect during the term) and (B) the average annual bonus over the prior three years (which shall be an amount
equal to 75% of his base salary if such termination occurs prior to the receipt of an annual bonus or prior to the receipt of an
annual bonus for a full year of employment); (ii) reimbursement of COBRA premiums for a period of twelve months and (iii) all unvested
equity awards granted to him that would have vested in the twelve months following the termination of employment shall automatically
vest (provided that performance awards shall vest subject to the attainment of the performance metrics). If Mr. McClain’s
employment is terminated without “cause” or for “good reason” prior to the end of the employment period
within the one year period following a “change in control” he will be entitled to (i) cash, payable in equal installments
over a two year period, equal to two times the sum of (A) his base salary (at the highest level in effect during the term) and
(B) the average annual bonus over the prior three years (which shall be an amount equal to 75% of his base salary if such termination
occurs prior to the receipt of an annual bonus or prior to the receipt of an annual bonus for a full year of employment); (ii)
reimbursement of COBRA premiums for a period of two years and (iii) all unvested equity awards granted to him shall automatically
vest (provided that performance awards shall vest subject to the attainment of the performance metrics, to the extent such performance
metrics (which shall be reviewed and may be adjusted by the Company’s Board of Directors) continue to apply). To receive
these benefits, Mr. McClain must execute a general release of claims. Mr. McClain will also be prohibited from competing with the
Company or soliciting the Company’s employees, customers or suppliers for a period of two years following his termination
of employment.
The foregoing description
of the employment agreement is qualified in entirety by the full text of the employment agreement, a copy of which is attached
as Exhibit 10.1 hereto.
Item 7.01. Regulation FD Disclosure.
On October 28, 2015, the Company issued a press
release announcing the appointment described above in Item 5.02. The Company is furnishing a copy of such press release as Exhibit
99.1 hereto, which is incorporated by reference herein.
Item 9.01(d). Financial Statements and Exhibits.
Exhibit 10.1 Employment Agreement by and
between Lindblad Expeditions Holdings, Inc. and John T. McClain.
Exhibit 10.2 Form of Executive Officer Stock
Option Award Agreement
Exhibit 99.1 Press Release of Lindblad Expeditions
Holdings, Inc.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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LINDBLAD EXPEDITIONS HOLDINGS, INC.
(registrant) |
|
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October 30, 2015 |
By: |
/s/ Sven-Olof Lindblad |
|
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Sven-Olof Lindblad; President and CEO |
Exhibit
10.1
Employment
Agreement
This
Employment Agreement (this “Agreement”), dated as of October 27, 2015 (the “Effective Date”),
is made by and between Lindblad Expeditions Holdings, Inc., a Delaware corporation (together with any successor thereto, the “Company”)
and John T. McClain (“Executive”) (collectively Executive and the Company are referred to herein
as the “Parties”).
RECITALS
| A. | It
is the desire of the Company to assure itself of the services of Executive effective
as of the Effective Date (as defined below) and thereafter by entering into this Agreement. |
| B. | Executive
and the Company mutually desire that Executive provide services to the Company on the
terms herein provided. |
AGREEMENT
NOW,
THEREFORE, in consideration of the foregoing and of the respective covenants and agreements set forth below, the Parties hereto
agree as follows:
(a) General.
Effective as of the Effective Date, the Company shall employ Executive for the period and in the position set forth in this Section
1, and subject to the other terms and conditions herein provided.
(b) Employment
Term. The term of employment under this Agreement (the “Term”) shall be for the period beginning on the
Executive’s first day of active employment with the Company (the “Effective Date”), and ending on the fourth
anniversary thereof, subject to earlier termination as provided in Section 3. The Term shall automatically renew for additional
twelve (12) month periods unless no later than sixty (60) days prior to the end of the applicable Term either Party gives written
notice of non-renewal to the other, in which case Executive’s employment will terminate
at the end of the then-applicable Term, subject to earlier termination as provided in Section 3.
(c) Position
and Duties. Executive shall serve as the Chief Financial Officer of the Company, with such responsibilities, duties and authority
normally associated with such position and such additional responsibilities, duties and authority as may from time to time be
assigned to Executive by the Chief Executive Officer of the Company or by the Board of Directors of the Company or an authorized
committee thereof (in any case, the “Board”). Executive shall report directly to the Chief Executive Officer
of the Company. Executive shall devote substantially all of Executive’s working time and efforts to the business and affairs
of the Company (which shall include service to its subsidiaries) and shall not engage in outside business activities without the
consent of the Board, provided that Executive shall be permitted to (i) manage Executive’s personal, financial
and legal affairs, (ii) participate in charitable, religious, civic, community, industry or trade organizations or associations,
(iii) serve on the board of directors of not-for-profit or tax-exempt organizations and (iv) with the prior approval
of the Board (not to be unreasonably withheld), serve on the board of directors and the committees thereof of not more than two
(2) public corporations, provided that approval for Executive’s continued service on the boards of directors and committees
thereof of Lands’ End, Inc. and Seritage is deemed granted hereby, in each case, subject to compliance with this Agreement
and provided that such activities do not materially interfere with Executive’s performance of Executive’s duties
and responsibilities hereunder. Executive agrees to observe and comply with the rules and policies of the Company applicable to
executive officers as adopted by the Company from time to time, in each case as amended from time to time, as set forth in writing,
and as delivered or made available to Executive (each, a “Policy”).
2. |
Compensation and Related Matters. |
(a) Annual
Base Salary. During the Term, Executive shall receive a base salary at a rate of $425,000 per annum, which shall be paid in
accordance with the customary payroll practices of the Company and its subsidiaries (but in no event less frequently than semi-monthly)
and shall be pro-rated for partial years of employment. Such annual base salary shall be reviewed (and may be adjusted upwards)
from time to time by the Board or the Compensation Committee of the Board (the “Compensation Committee”) (such
annual base salary, as it may be adjusted upwards from time to time, the “Annual Base Salary”). All amounts
paid to Executive under this Agreement shall be in U.S. dollars.
(b) Bonus.
During the Term and beginning with calendar year 2015, Executive will be eligible to participate in an annual incentive program
established by the Board or the Compensation Committee. Executive’s annual compensation under such incentive program (the
“Annual Bonus”) shall be targeted at 75% of his Annual Base Salary (the “Target Bonus”).
The Annual Bonus will scale upward and downward based on individual and/or actual Company performance, as determined by the Board
or the Compensation Committee. The payment of any Annual Bonus pursuant to the incentive program shall be subject to any applicable
performance determinations as may be made annually by the Board or the Compensation Committee, and Executive’s continued
employment with the Company through the date of payment, except as otherwise provided in Section 4(b) or Section 4(c).
The Annual Bonus, if any, shall be paid to Executive no later than seventy five (75) days following the end of the calendar year
to which the Annual Bonus relates. Any Annual Bonus earned for calendar year 2015 shall be prorated to reflect the partial year
of service.
(c) Equity
Compensation. On the Effective Date, Executive will be granted an option (the “Option”) to purchase 300,000
shares of the Company’s common stock, pursuant to the terms of the Company’s 2015 Long-Term Incentive Plan (the “Plan”)
and a separate stock option agreement that will be entered into with Executive. The Option shall have a ten year term, vest in
equal installments on the first four anniversaries of the Effective Date, and shall not be subject to any performance-based or
other conditions (except as set forth in the Plan or the stock option agreement). The per share exercise price of the Option will
be equal to the closing price of the common stock on the NASDAQ Stock Market on the Effective Date. In addition, during the Term,
Executive will be eligible to participate in and may receive additional awards under any of the Company’s equity incentive
award plans and programs as in effect from time to time, with any new equity incentive grants made in the sole discretion of the
Board or Compensation Committee and with the expectation that Executive will receive an annual equity incentive grant under such
equity incentive award plans or programs of the Company. The grant date fair value of Executive’s annual equity incentive
grant shall be targeted at 100% of his Annual Base Salary, it being understood that all equity incentive grants are made in the
sole discretion of the Board or Compensation Committee and may vary year-to-year based on benchmarking, performance or other considerations
as may be determined by the Board or Compensation Committee in its discretion. In the event that the first annual equity incentive
grant for the Company’s executives generally occurs prior to the first anniversary of the Effective Date, the grant date
fair value of Executive’s equity incentive grant shall be prorated to reflect the partial year of service.
(d) Benefits.
During the Term, Executive shall be eligible to participate in employee benefit plans, programs and arrangements (including perquisite
and fringe benefit arrangements) maintained for senior executives of the Company (including, effective on the Effective Date,
medical, dental, life insurance, disability, paid time off and 401(k) plans), consistent with the terms thereof, on a basis consistent
with the participation of senior executives of the Company, and as such plans, programs and arrangements may be amended from time
to time. In no event shall Executive be eligible to participate in any severance plan or program of the Company, except as set
forth in Section 4 of this Agreement.
(e) Vacation.
During the Term, Executive shall be entitled to a minimum of twenty (20) days annually of paid vacation in accordance with the
Company’s Policies.
(f) Business
Expenses. The Company shall reimburse Executive for all reasonable travel and other business expenses incurred by Executive
in the performance of Executive’s duties to the Company in accordance with the Company’s expense reimbursement Policy
and in compliance with Section 12(m).
Executive’s
employment hereunder may be terminated by the Company or Executive, as applicable, without any breach of this Agreement under
the following circumstances:
(i) Death.
Executive’s employment hereunder shall terminate upon Executive’s death.
(ii) Disability.
If Executive has incurred a Disability, as defined below, the Company may terminate Executive’s employment.
(iii) Termination
for Cause. The Company may terminate Executive’s employment for Cause, as defined below.
(iv) Termination
without Cause. The Company may terminate Executive’s employment without Cause, which shall include a termination of
Executive as a result of the Company not renewing the Term pursuant to Section 1.
(v) Resignation
from the Company for Good Reason. Executive may resign Executive’s employment with the Company for Good Reason, as defined
below.
(vi) Resignation
from the Company Without Good Reason. Executive may resign Executive’s employment with the Company for any reason, other
than Good Reason, or for no reason, which shall include a termination of Executive as a result of Executive not renewing the Term
pursuant to Section 1.
(b) Notice
of Termination. Any termination of Executive’s employment by the Company or by Executive under this Section 3
(other than termination pursuant to Section 3(a)(i)) shall be communicated by a written notice to the other Party (i) indicating
the specific termination provision in this Agreement relied upon, (ii) setting forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive’s employment under the provision so indicated, if applicable, and
(iii) specifying a Date of Termination which, except in the case of a termination pursuant to Section 3(a)(iii), shall
be at least forty-five (45) days following the date of such notice (a “Notice of Termination”); provided
that the Company may, in its sole discretion, instruct Executive to remain off the Company’s premises and perform no
Company functions from the date of such Notice of Termination through the Date of Termination, but only to the extent that the
Company pays Executive full compensation and benefits during such period. The failure by the Company or Executive to set forth
in the Notice of Termination any fact or circumstance which contributes to a showing of Cause or Good Reason shall not waive any
right of such Party hereunder or preclude such Party from asserting such fact or circumstance in enforcing such Party’s
rights hereunder.
(c) Company
Obligations upon Termination. Upon termination of Executive’s employment pursuant to any of the circumstances listed
in Section 3, Executive (or Executive’s estate) shall be entitled to receive the sum of: (i) the portion of
Executive’s Annual Base Salary earned through the Date of Termination, but not yet paid to Executive; (ii) any vacation
time that has been accrued but unused in accordance with the Company’s Policies; (iii) any reimbursements owed to Executive
pursuant to Section 2(f); and (iv) any amount accrued and arising from Executive’s participation in, or benefits
accrued under, any employee benefit plans, programs or arrangements, which amounts shall be payable in accordance with the terms
and conditions of such employee benefit plans, programs or arrangements (collectively, the “Company Arrangements”).
Except as otherwise expressly required by law (e.g., COBRA), as specifically provided herein, or with respect to any of
Executive’s equity-related compensation (which, for the avoidance of doubt, shall be governed by the terms and conditions
of the applicable equity compensation plans and agreements), all of Executive’s rights to salary, severance, benefits, bonuses
and other compensatory amounts hereunder (if any) shall cease upon the termination of Executive’s employment hereunder.
In the event that Executive’s employment is terminated by the Company for any reason, Executive’s sole and exclusive
remedy shall be to receive the payments and benefits described in this Section 3(c) and Section 4, as applicable.
(d) Deemed
Resignation. Upon termination of Executive’s employment for any reason, Executive shall be deemed to have resigned from
all offices and directorships, if any, then held with the Company or any of its subsidiaries.
(a) Termination
for Cause, or Termination Upon Death, Disability or Resignation from the Company Without Good Reason. If Executive’s
employment shall terminate as a result of Executive’s death pursuant to Section 3(a)(i) or Disability pursuant to
Section 3(a)(ii), pursuant to Section 3(a)(iii) for Cause, or pursuant to Section 3(a)(vi) for Executive’s
resignation from the Company without Good Reason, then Executive shall not be entitled to any severance payments or benefits,
except as provided in Section 3(c).
(b) Termination
without Cause or Resignation for Good Reason. If Executive’s employment terminates without
Cause pursuant to Section 3(a)(iv), or pursuant to Section 3(a)(v) due to Executive’s resignation for
Good Reason, then, subject to Executive signing on or before the 21st day following the Date of Termination, and not
revoking during any subsequent revocation period contained therein, a release of claims substantially in the form attached as
Exhibit A to this Agreement (the “Release”), and Executive’s continued compliance with Sections
6 and 7, Executive shall receive, in addition to payments and benefits set forth in Section 3(c), the following:
(i) an
amount in cash equal to 1.0 times the sum of (A) Annual Base Salary (at the highest level in effect during the Term) plus
(B) the average Annual Bonus over the prior three years or such shorter period as Executive has been employed by the Company
(provided that, if Executive has not yet received an Annual Bonus or an Annual Bonus with respect to a full year of employment
under the Company’s annual incentive program on the Date of Termination, such amount will be equal to the Target Bonus),
payable in the form of salary continuation in regular installments over the 12-month period following the Date of Termination
in accordance with the Company’s normal payroll practices;
(ii) if
Executive timely elects continued medical, dental or vision coverage under one or more of the Company’s group medical, dental
or vision plans pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”),
then the Company shall directly pay, or reimburse Executive for, the COBRA premiums for Executive and Executive’s covered
dependents under such plans during the period commencing on the Date of Termination and ending 12-months following the Date of
Termination. Notwithstanding the foregoing, if the Company determines that it cannot provide the benefit required by this Section
4(b)(ii) without potentially violating applicable law (including Section 2716 of the Public Health Service Act) or incurring
an excise tax, the Company shall in lieu thereof provide to Executive a monthly payment in an after-tax amount equal to the monthly
COBRA premium that Executive would be required to pay to continue Executive’s and Executive’s covered dependents’
group health coverage in effect on the Date of Termination, which amount shall be based on the premium for the first month of
COBRA coverage; and
(iii) any
unvested equity or equity-based awards granted to Executive under any of the Company’s equity incentive award plans or programs
that would have vested during the 12-month period following the Date of Termination shall become vested, provided that,
unless a provision more favorable to Executive is included in an applicable award agreement, any such awards that are subject
to performance-based vesting conditions (“Performance Equity Awards”) shall only be payable subject to the
attainment of the performance measures for the applicable performance period as provided under the terms of the applicable award
agreement.
(c) Change
in Control. If Executive’s employment terminates without Cause pursuant to Section 3(a)(iv), or pursuant to Section
3(a)(v) due to Executive’s resignation for Good Reason, in either case, within one year following the date of a Change
in Control, then, subject to Executive signing on or before the 21st day following the Date of Termination, and not
revoking during any subsequent revocation period contained therein, the Release, and Executive’s continued compliance with
Sections 6 and 7, Executive shall receive, in addition to payments and benefits set forth in Section 3(c),
the following in lieu of the severance payments and benefits set forth in Section 4(b):
(i) an
amount in cash equal to 2.0 times the sum of (A) Annual Base Salary (at the highest level in effect during the Term) plus
(B) the average Annual Bonus over the prior three years or such shorter period as Executive has been employed by the Company
(provided that, if Executive has not yet received an Annual Bonus or an Annual Bonus with respect to a full year of employment
under the Company’s annual incentive program on the Date of Termination, such amount will be equal to the Target Bonus),
payable in the form of salary continuation in regular installments over the 24-month period following the Date of Termination
in accordance with the Company’s normal payroll practices;
(ii) if
Executive timely elects continued medical, dental or vision coverage under one or more of the Company’s or its successor’s
group medical, dental or vision plans pursuant to COBRA, then the Company shall directly pay, or reimburse Executive for, the
COBRA premiums for Executive and Executive’s covered dependents under such plans during the period commencing on the Date
of Termination and ending 24-months following the Date of Termination. Notwithstanding the foregoing, if the Company determines
that it cannot provide the benefit required by this Section 4(c)(ii) without potentially violating applicable law (including
Section 2716 of the Public Health Service Act) or incurring an excise tax, the Company shall in lieu thereof provide to Executive
a monthly payment in an after-tax amount equal to the monthly COBRA premium that Executive would be required to pay to continue
Executive’s and Executive’s covered dependents’ group health coverage in effect on the Date of Termination,
which amount shall be based on the premium for the first month of COBRA coverage; and
(iii) all
unvested equity or equity-based awards granted to Executive under any of the Company’s equity incentive award plans or programs
shall immediately become 100% vested, provided that, with respect to any Performance Equity Award, vesting of such award
may remain subject to attaining applicable performance goals to the extent the relevant performance goals (which performance goals
shall be reviewed and may be adjusted by the Board (as constituted prior to the Change in Control) as applicable to reflect the
Change in Control transaction) continue to apply following the Change in Control.
(d) Survival.
Notwithstanding anything to the contrary in this Agreement, the provisions of Sections 4 through 10 and Section
12 will survive the termination of Executive’s employment and the expiration or termination of the Term.
(a) It
is the objective of this Agreement to maximize Executive’s Net After-Tax Benefit (as defined herein) if payments or benefits
provided under this Agreement are subject to excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended, and
the regulations and guidance promulgated thereunder (the “Code”). Notwithstanding any other provisions of this
Agreement, in the event that any payment or benefit by the Company or otherwise to or for the benefit of Executive, whether paid
or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (all such payments and benefits,
including the payments and benefits under Section 4(b) and Section 4(c) hereof, being hereinafter referred to as
the “Total Payments”), would be subject (in whole or in part) to the excise tax imposed by Section 4999
of the Code (the “Excise Tax”), then the Total Payments shall be reduced to the extent necessary so that no
portion of the Total Payments shall be subject to the Excise Tax, but only if (i) the net amount of such Total Payments, as so
reduced (and after subtracting the net amount of federal, state and local income and employment taxes on such reduced Total Payments
and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total
Payments), is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting
the net amount of federal, state and local income and employment taxes on such Total Payments and the amount of Excise Tax to
which Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized
deductions and personal exemptions attributable to such unreduced Total Payments).
(b) The
Total Payments shall be reduced by the Company in the following order: (i) reduction of any cash severance payments otherwise
payable to Executive that are exempt from Section 409A of the Code (“Section 409A”), (ii) reduction of
any other cash payments or benefits otherwise payable to Executive that are exempt from Section 409A, but excluding any payments
attributable to the acceleration of vesting or payments with respect to any equity award with respect to the Company’s common
stock that is exempt from Section 409A, (iii) reduction of any other payments or benefits otherwise payable to Executive on a
pro-rata basis or such other manner that complies with Section 409A, but excluding any payments attributable to the acceleration
of vesting and payments with respect to any equity award with respect to the Company’s common stock that are exempt from
Section 409A, and (iv) reduction of any payments attributable to the acceleration of vesting or payments with respect
to any other equity award with respect to the Company’s common stock that are exempt from Section 409A.
(c) All
determinations regarding the application of this Section 5 shall be made by an accounting firm with experience in performing
calculations regarding the applicability of Section 280G of the Code and the Excise Tax selected by the Company and acceptable
to Executive (“Independent Advisors”), a copy of which report and all worksheets and background materials relating
thereto shall be provided to Executive. For purposes of determining whether and the extent to which the Total Payments will be
subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which Executive shall have waived
at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code
shall be taken into account; (ii) no portion of the Total Payments shall be taken into account which, in the opinion of the Independent
Advisors, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including
by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be
taken into account which, in the opinion of Independent Advisors, constitutes reasonable compensation for services actually rendered,
within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as defined in Section 280G(b)(3)
of the Code) allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or
benefit included in the Total Payments shall be determined by the Independent Advisors in accordance with the principles of Sections
280G(d)(3) and (4) of the Code. The costs of obtaining such determination and all related fees and expenses (including related
fees and expenses incurred in any later audit) shall be borne solely by the Company.
6. Competition;
Non-disparagement. Executive acknowledges that Executive has been provided with Confidential
Information (as defined below) and, during the Term, the Company from time to time will provide Executive with access to Confidential
Information. Ancillary to the rights provided to Executive as set forth in this Agreement and the Company’s provision of
Confidential Information, and Executive’s agreements regarding the use of same, in order to protect the value of any Confidential
Information, the Company and Executive agree to the following provisions against unfair competition, which Executive acknowledges
represent a fair balance of the Company’s rights to protect its business and Executive’s right to pursue employment:
(a) Executive
shall not, at any time during the Restriction Period (as defined below), directly or indirectly engage in, have any equity interest
in, interview for a potential employment or consulting relationship with or manage, provide services to or operate any person,
firm, corporation, partnership or business (whether as director, officer, employee, agent, representative, partner, security holder,
consultant or otherwise) that engages in any business which directly competes with any portion of the Business (as defined below)
anywhere in the world. Nothing herein shall prevent Executive from engaging in any activity with a non-competitive division of
an entity engaged in a business that competes with the Company; provided that none of Executive’s activities in respect
of such non-competitive division would reasonably be expected to cause Executive to otherwise breach his obligations under this
Section 6 in respect of the entity engaged in a business that competes with the Company. In addition, nothing herein shall
prohibit Executive from being a passive owner of not more than 5% of the outstanding equity interest in any entity that is publicly
traded, so long as Executive has no active participation in the business of such entity.
(b) Except
in furtherance of his duties hereunder during the Term, Executive shall not, at any time during the Restriction Period, directly
or indirectly, (i) solicit any customers, clients or suppliers of the Company or (ii) solicit, with respect to hiring, any employee
or independent contractor of the Company or any person employed or engaged by the Company at any time during the 12-month period
immediately preceding the Date of Termination.
(c) In
the event the terms of this Section 6 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.
(d) As
used in this Section 6, (i) the term “Company” shall include the Company and its direct and indirect
subsidiaries; (ii) the term “Business” shall mean the business of the Company, as such business is conducted
as of the Effective Date or may be expanded or altered by the Company during the Term, in any case that represents more than 10%
of the Company’s gross annual revenues, and shall include any type of marine-based expeditions; and (iii) the term “Restriction
Period” shall mean the period beginning on the Effective Date and ending on the date 24 months following the Date of
Termination.
(e) Each
Party to this Agreement (which, in the case of the Company, shall include its officers and the members of the Board) agrees, during
the Term and thereafter, to refrain from Disparaging (as defined below) the other Party and its affiliates. Nothing in this paragraph
shall preclude any Party from making truthful statements that are reasonably necessary to comply with applicable law, regulation
or legal process, or to defend or enforce a Party’s rights under this Agreement. For purposes of this Agreement, “Disparaging”
means making remarks, comments or statements, whether written or oral, that impugn the character, integrity, reputation or abilities
of the person or entity being disparaged.
7. |
Nondisclosure of Proprietary Information. |
(a) Except
in connection with the faithful performance of Executive’s duties hereunder or pursuant to Section 7(c) or (e), Executive
shall, in perpetuity, maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish,
or use for Executive’s benefit or the benefit of any person, firm, corporation or other entity (other than the Company)
any confidential or proprietary information or trade secrets of or relating to the Company (including business plans, business
strategies and methods, acquisition targets, intellectual property in the form of patents, trademarks and copyrights and applications
therefor, ideas, inventions, works, discoveries, improvements, information, documents, formulae, practices, processes, methods,
developments, source code, modifications, technology, techniques, data, programs, other know-how or materials, owned, developed
or possessed by the Company, whether in tangible or intangible form, information with respect to the Company’s operations,
processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers,
marketing methods, costs, prices, contractual relationships, regulatory status, prospects and compensation paid to employees or
other terms of employment) (collectively, the “Confidential Information”), or deliver to any person, firm,
corporation or other entity any document, record, notebook, computer program or similar repository of or containing any such Confidential
Information. The Parties hereby stipulate and agree that, as between them, any item of Confidential Information is important,
material and confidential and affects the successful conduct of the businesses of the Company (and any successor or assignee of
the Company). Notwithstanding the foregoing, Confidential Information shall not include any information that has been published
in a form generally available to the public or is publicly available or has become public knowledge prior to the date Executive
proposes to disclose or use such information, provided that such publishing or public availability or knowledge of the
Confidential Information shall not have resulted from Executive directly or indirectly breaching Executive’s obligations
under this Section 7(a) or any other similar provision by which Executive is bound, or from any third-party known by Executive
to be breaching a provision similar to that found under this Section 7(a). For the purposes of the previous sentence, Confidential
Information will not be deemed to have been published or otherwise disclosed merely because individual portions of the information
have been separately published, but only if material features comprising such information have been published or become publicly
available.
(b) Upon
termination of Executive’s employment with the Company for any reason, Executive will promptly deliver to the Company all
correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any
other documents or property concerning the Company’s customers, business plans, marketing strategies, products, property
or processes, provided that Executive may retain his compensation-related information, personal journal and rolodex, address
book, appointment book, calendar and/or contact list.
(c) Notwithstanding
Section 7(a), Executive may respond to a lawful and valid subpoena or other legal process but shall give the Company the
earliest practicable notice thereof, shall, as much in advance of the return date as practicable, make available to the Company
and its counsel the documents and other information sought and shall assist such counsel at Company’s sole expense in resisting
or otherwise responding to such process, in each case to the extent permitted by applicable laws or rules.
(d) As
used in this Section 7 and Section 8, the term “Company” shall include the Company and its direct
and indirect subsidiaries.
(e) Nothing
in this Agreement shall prohibit Executive from (i) disclosing information and documents when required by law, subpoena or court
order (subject to the requirements of Section 7(c) above), (ii) disclosing information and documents to Executive’s
attorney, financial or tax adviser for the purpose of securing legal, financial or tax advice, (iii) disclosing Executive’s
post-employment restrictions in this Agreement in confidence to any potential new employer, or (iv) retaining, at any time, Executive’s
personal correspondence, Executive’s personal contacts and documents related to Executive’s own personal benefits,
entitlements and obligations.
All
rights to discoveries, inventions, improvements and innovations (including all data and records pertaining thereto) related to
the business of the Company, whether or not patentable, copyrightable, registrable as a trademark, or reduced to writing, that
Executive may discover, invent or originate during Executive’s period of service with the Company or its subsidiaries or
its or their predecessors, either alone or with others and whether or not during working hours or by the use of the facilities
of the Company (“Inventions”), shall be the exclusive property of the Company. Executive shall promptly disclose
all Inventions to the Company, shall execute at the request of the Company any assignments or other documents the Company may
deem reasonably necessary to protect or perfect its rights therein, and shall assist the Company, upon reasonable request and
in all instances at the Company’s sole expense, in obtaining, defending and enforcing the Company’s rights therein.
Executive hereby appoints the Company as Executive’s attorney-in-fact to execute on Executive’s behalf any assignments
or other documents reasonably deemed necessary by the Company to protect or perfect its rights to any Inventions.
It
is recognized and acknowledged by Executive that a breach of the covenants contained in Sections 6, 7 and 8 could cause
irreparable damage to Company and its goodwill, the exact amount of which may be difficult or impossible to ascertain, and that
the remedies at law for any such breach may be inadequate. Accordingly, Executive agrees that in the event of a breach of any
of the covenants contained in Sections 6, 7 and 8, in addition to any other remedy which may be available at law or in
equity, the Company will be entitled to seek specific performance and injunctive relief without the requirement to post bond.
10. |
Assignment and Successors. |
None
of the Company’s rights or obligations may be assigned or transferred by the Company, except that the Company shall assign
its rights and obligations under this Agreement to any successor to all or substantially all of the business or the assets of
the Company (by merger or otherwise). This Agreement shall be binding upon and inure to the benefit of the Company, Executive
and their respective successors, assigns, legal representatives, executors, administrators, heirs, distributees, devisees, and
legatees, as applicable. None of Executive’s rights or obligations may be assigned or transferred by Executive, other than
Executive’s rights to payments hereunder, which may be transferred only by will or operation of law. Notwithstanding the
foregoing, Executive shall be entitled, to the extent permitted under applicable law and applicable Company Arrangements, to select
and change a beneficiary or beneficiaries to receive compensation hereunder following Executive’s death by giving written
notice thereof to the Company.
(a) Cause.
The Company shall have “Cause” to terminate Executive’s employment hereunder upon Executive’s:
(i) willful
misconduct and mismanagement by Executive that is materially injurious to the Company;
(ii) refusal
in any material respect to carry out or comply with any lawful and reasonable written directive of the Board consistent with the
terms of this Agreement;
(iii) conviction,
plea of no contest, or plea of nolo contendere for any felony;
(iv) unlawful
use (including being under the influence) or possession of illegal drugs on the Company’s (or any of its subsidiaries’)
premises while performing Executive’s duties and responsibilities under this Agreement;
(v) commission
of an act of fraud, embezzlement, willful misappropriation, willful misconduct, or breach of fiduciary duty, in any case that
results in material harm to the Company or any of its affiliates;
(vi) material
violation of any provision of this Agreement or a material Policy; or
(vii) willful
or prolonged, and unexcused, absence from work (other than by reason of Executive’s Disability).
For
purposes of this definition, an action or inaction is only “willful” if it is done or omitted by Executive without
a good faith belief that such action or inaction is in the best interests of the Company.
Notwithstanding
the foregoing, no termination for Cause will have occurred unless and until the Company has: (a) provided Executive, within thirty
(30) days of the Company first becoming aware of the facts or circumstances constituting Cause, written-notice stating with specificity
the applicable facts and circumstances underlying such finding of Cause; and (b) provided Executive with an opportunity to
cure the same within thirty (30) days after the receipt of such notice. Any termination for Cause must occur within ninety (90)
days of the Company first becoming aware of the facts or circumstances constituting Cause.
(b) Change
in Control. “Change in Control” shall have the meaning set forth in the version of the Company’s
2015 Long-Term Incentive Plan in effect on the Effective Date.
(c) Date
of Termination. “Date of Termination” shall mean (i) if Executive’s employment is terminated by Executive’s
death, the date of Executive’s death; and (ii) if Executive’s employment is terminated pursuant to Section 3(a)(ii)
– (vi), the date indicated in the Notice of Termination.
(d) Disability.
“Disability” shall mean Executive’s inability to perform, with or without reasonable accommodation, the
essential functions of Executive’s position hereunder for a total of one hundred and eighty (180) days during any three
hundred and sixty five (365) day period as a result of incapacity due to mental or physical illness as determined by a physician
selected by the Company or its insurers, and acceptable to Executive or Executive’s legal representative, with such agreement
as to acceptability not to be unreasonably withheld, delayed or conditioned. Any refusal by Executive to submit to a reasonable
medical examination at the Company’s sole expense for the purpose of determining Disability shall be deemed to constitute
conclusive evidence of Executive’s Disability.
(e) Good
Reason. Executive’s resignation will be for “Good Reason” if Executive resigns following the occurrence
of any of the following events: (i) a decrease in Executive’s Annual Base Salary (from the highest level in effect
during the Term); (ii) a material diminution in Executive’s authority, duties or responsibilities; (iii) a requirement
that Executive report to other than the Chief Executive Officer of the Company and the Board; (iv) a relocation of the location
at which Executive is required primarily to perform his services for the Company outside the Borough of Manhattan within the City
of New York; or (v) any other action or inaction that constitutes a material breach by the Company of this Agreement. Notwithstanding
the foregoing, no Good Reason will have occurred unless and until Executive has: (a) provided the Company, within ninety (90)
days of Executive’s first knowledge of the occurrence of the facts and circumstances underlying the Good Reason event, written-notice
stating with specificity the applicable facts and circumstances underlying such finding of Good Reason; and (b) provided
the Company with an opportunity to cure the same within thirty (30) days after the receipt of such notice.
12. |
Miscellaneous Provisions. |
(a) Governing
Law. This Agreement shall be governed, construed, interpreted and enforced in accordance with its express terms, and otherwise
in accordance with the substantive laws of the State of New York without reference to the principles of conflicts of law of the
State of New York or any other jurisdiction, and where applicable, the laws of the United States. Any suit brought hereon shall
be brought in the state or federal courts sitting in the Borough of Manhattan within the City of New York, the Parties hereby
waiving any claim or defense that such forum is not convenient or proper. Each Party hereby agrees that any such court shall have
in personam jurisdiction over it and consents to service of process in any manner authorized by New York law.
(b) Validity.
The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, which shall remain in full force and effect.
(c) Notices.
Any notice, request, claim, demand, document and other communication hereunder to any Party shall be effective upon receipt (or
refusal of receipt) and shall be in writing and delivered personally or sent by facsimile or certified or registered mail, postage
prepaid, as follows:
| (i) | If
to the Company, the Chief Executive Officer or the General Counsel at its headquarters, |
and
copies to:
Latham
& Watkins LLP
555
Eleventh Street, N.W.
Washington,
DC 20004
Attention:
Paul Sheridan and Adam Kestenbaum
(ii) If
to Executive, at the last address that the Company has in its personnel records for Executive.
(iii) At
any other address as any Party shall have specified by notice in writing to the other Party.
(d) Counterparts.
This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together
will constitute one and the same Agreement. Signatures delivered by facsimile or email shall be deemed effective for all purposes.
(e) Entire
Agreement. The terms of this Agreement are intended by the Parties to be the final expression of their agreement with respect
to the subject matter hereof and supersede all prior understandings and agreements, whether written or oral. The Parties further
intend that this Agreement shall constitute the complete and exclusive statement of their terms and that no extrinsic evidence
whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement.
(f) Certain
Indemnity Rights; D&O Coverage. During and after the Term, the Company shall (i) provide Executive with directors’
and officers’ liability insurance coverage at least as favorable as that applicable to any then-current chief executive
officer of the Company, and (ii) indemnify Executive and his legal representatives to the fullest extent permitted by the
laws of the State of Delaware against all damages, costs, expenses and other liabilities reasonably incurred or sustained by Executive
or his legal representatives in connection with any suit, action or proceeding to which Executive or his legal representatives
may be made a party by reason of Executive being or having been a director or officer of the Company or any of its subsidiaries,
or having served in any other capacity or taken any other action purportedly on behalf of or at the request of the Company or
any of its subsidiaries.
(g) Amendments;
Waivers. This Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by Executive
and a duly authorized representative of the Company. By an instrument in writing similarly executed, Executive or a duly authorized
representative of the Company may waive compliance by the other Party with any specifically identified provision of this Agreement
that such other Party was or is obligated to comply with or perform; provided that such waiver shall not operate as a waiver
of, or estoppel with respect to, any other or subsequent failure. No failure to exercise and no delay in exercising any right,
remedy, or power hereunder shall preclude any other or further exercise of any other right, remedy, or power provided herein or
by law or in equity.
(h) No
Inconsistent Actions. The Parties hereto shall not voluntarily undertake or fail to undertake any action or course of action
inconsistent with the provisions or essential intent of this Agreement. Furthermore, it is the intent of the Parties hereto to
act in a fair and reasonable manner with respect to the interpretation and application of the provisions of this Agreement.
(i) Construction.
This Agreement shall be deemed drafted equally by both Parties. Its language shall be construed as a whole and according to its
fair meaning. Any presumption or principle that the language is to be construed against any Party shall not apply. The headings
in this Agreement are only for convenience and are not intended to affect construction or interpretation. Any references to paragraphs,
subparagraphs, sections or subsections are to those parts of this Agreement, unless the context clearly indicates to the contrary.
Also, unless the context clearly indicates to the contrary, (a) the plural includes the singular and the singular includes the
plural; (b) “any,” “all,” “each,” or “every” means “any and all,”
and “each and every”; (c) “includes” and “including” are each “without limitation”;
(d) “herein,” “hereof,” “hereunder” and other similar compounds of the word “here”
refer to the entire Agreement and not to any particular paragraph, subparagraph, section or subsection; and (e) all pronouns and
any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the
entities or persons referred to may require.
(j) Arbitration.
Any controversy, claim or dispute arising out of or relating to this Agreement shall be settled solely and exclusively by a binding
arbitration process administered by JAMS/Endispute in New York, New York. Such arbitration shall be conducted in accordance with
the then-existing JAMS/Endispute Rules of Practice and Procedure, with the following exceptions if in conflict: (a) one arbitrator
who is a retired judge shall be chosen by JAMS/Endispute; (b) the Company will pay the expenses and fees of the arbitrator, together
with other expenses of the arbitration incurred or approved by the arbitrator; and (c) arbitration may proceed in the absence
of any Party if written notice (pursuant to the JAMS/Endispute rules and regulations) of the proceedings has been given to such
Party. Each Party shall bear its own attorney’s fees and expenses. The arbitrator may assess the prevailing Party’s
fees and costs against the non-prevailing Party as part of the arbitrator’s award and shall in all events award Executive
his reasonable fees and costs (including the reasonable fees and expenses of his counsel) if Executive prevails on one or more
substantive issues in the arbitration. The Parties agree to abide by all decisions and awards rendered in such proceedings. Such
decisions and awards rendered by the arbitrator shall be final and conclusive. All such controversies, claims or disputes shall
be settled in this manner in lieu of any action at law or equity; provided that nothing in this subsection shall be construed
as precluding the bringing an action for injunctive relief or specific performance as provided in this Agreement. This dispute
resolution process and any arbitration hereunder shall be confidential and neither any Party nor the neutral arbitrator shall
disclose the existence, contents or results of such process without the prior written consent of all Parties, except where necessary
or compelled in a court to enforce this arbitration provision or an award from such arbitration or otherwise in a legal proceeding.
If JAMS/Endispute no longer exists or is otherwise unavailable, the Parties agree that the American Arbitration Association (“AAA”)
shall administer the arbitration in accordance with its then-existing rules as modified by this subsection. In such event, all
references herein to JAMS/Endispute shall mean AAA. Notwithstanding the foregoing, Executive and the Company each have the right
to resolve any issue or dispute over intellectual property rights by court action instead of arbitration.
(k) Enforcement.
If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during
the Term, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid
or unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of this Agreement shall
remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance
from this Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be added automatically
as part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible
and be legal, valid and enforceable, provided that the economic benefit to any Party is not diminished by such replacement.
(l) Withholding.
The Company shall be entitled to withhold from any amounts payable under this Agreement any federal, state, local or foreign withholding
or other taxes or charges which the Company is required to withhold.
(i) General.
The intent of the Parties is that the payments and benefits under this Agreement comply with or be exempt from Section 409A
and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.
(ii) Separation
from Service. Notwithstanding anything in this Agreement to the contrary, any compensation or benefits payable under this
Agreement that is considered nonqualified deferred compensation under Section 409A and is designated under this Agreement as payable
upon Executive’s termination of employment shall be payable only upon Executive’s “separation from service”
with the Company within the meaning of Section 409A (a “Separation from Service”) and, except as provided below,
any such compensation or benefits described in Section 4(b) and Section 4(c) shall not be paid, or, in the case
of installments, shall not commence payment, until the thirtieth (30th) day following Executive’s Separation from Service
(the “First Payment Date”). Any installment payments that would have been made to Executive during the thirty
(30) day period immediately following Executive’s Separation from Service but for the preceding sentence shall be paid to
Executive on the First Payment Date and the remaining payments shall be made as provided in this Agreement.
(iii) Specified
Employee. Notwithstanding anything in this Agreement to the contrary, if Executive is deemed by the Company at the time of
Executive’s Separation from Service to be a “specified employee” for purposes of Section 409A, to the extent
delayed commencement of any portion of the benefits to which Executive is entitled under this Agreement is required in order to
avoid a prohibited distribution under Section 409A, such portion of Executive’s benefits shall not be provided to Executive
prior to the earlier of (A) the expiration of the six-month period measured from the date of Executive’s Separation
from Service with the Company or (B) the date of Executive’s death. Upon the first business day following the expiration
of the applicable Section 409A delay period, all payments deferred pursuant to the preceding sentence shall be paid in a lump
sum to Executive (or Executive’s estate or beneficiaries), and any remaining payments due to Executive under this Agreement
shall be paid as otherwise provided herein.
(iv) Expense
Reimbursements. To the extent that any reimbursements under this Agreement are subject to Section 409A, (A) any such reimbursements
payable to Executive shall be paid to Executive no later than December 31 of the year following the year in which the expense
was incurred, provided that Executive submits Executive’s reimbursement request promptly following the date the expense
is incurred, (B) the amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent
year, other than medical expenses referred to in Section 105(b) of the Code, and (C) Executive’s right to reimbursement
under this Agreement will not be subject to liquidation or exchange for another benefit.
(v) Installments.
Executive’s right to receive any installment payments under this Agreement, including any salary continuation payments
that are payable on Company payroll dates, shall be treated as a right to receive a series of separate payments and, accordingly,
each such installment payment shall at all times be considered a separate and distinct payment as permitted under Section 409A.
Except as otherwise permitted under Section 409A, no payment hereunder shall be accelerated or deferred unless such acceleration
or deferral would not result in additional tax, interest or penalties pursuant to Section 409A.
13. |
Executive Acknowledgement. |
Executive
acknowledges that Executive has read and understands this Agreement, is fully aware of its legal effect, has not acted in reliance
upon any representations or promises made by the Company other than those contained in writing herein, and has entered into this
Agreement freely based on Executive’s own judgment.
[Signature
Page Follows]
IN
WITNESS WHEREOF, the Parties have executed this Agreement on the date and year first above written.
|
COMPANY |
|
|
|
|
By: |
/s/
Sven-Olof Lindblad |
|
|
Sven-Olof
Lindblad |
|
|
President
and CEO |
|
|
|
|
EXECUTIVE |
|
|
|
|
By: |
/s/
John T. McClain |
|
|
John
T. McClain |
[Signature Page to Employment Agreement]
EXHIBIT
A
Separation
Agreement and Release
This
Separation Agreement and Release (this “Agreement”) is made by and between John T. McClain (“Executive”)
and Lindblad Expeditions Holdings, Inc. (the “Company”) (collectively, referred to as the “Parties”
or individually referred to as a “Party”). Capitalized terms used but not defined in this Agreement shall have
the meanings set forth in the Employment Agreement (as defined below).
WHEREAS,
the Parties have previously entered into that certain Employment Agreement, dated as of October 27, 2015 (the “Employment
Agreement”); and
WHEREAS,
in connection with Executive’s termination of employment with the Company effective ________, 20__, the Parties wish to
resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that Executive may have
against the Company and any of the Releasees, as defined below, including, but not limited to, any and all claims arising out
of or in any way related to Executive’s employment with or separation from the Company or its subsidiaries or affiliates,
but, for the avoidance of doubt, nothing herein will be deemed to release any rights or remedies in connection with (i) Executive’s
ownership of vested equity securities, (ii) Executive’s right to indemnification or directors’ and officers’
liability insurance pursuant to contract or applicable law or, (iii) Executive’s rights under this Agreement or under the
Employment Agreement that expressly survive by its terms ((i) through (iii), collectively, the “Retained Claims”).
NOW,
THEREFORE, in consideration of the severance payments and benefits described in Section 4(b) and Section 4(c) of the Employment
Agreement, which, pursuant to the Employment Agreement, are conditioned on Executive’s execution and non-revocation of this
Agreement, and in consideration of the mutual promises made herein, the Company and Executive hereby agree as follows:
1. Severance
Payments; Salary and Benefits. The Company agrees to provide Executive with the severance payments and benefits described
in Section 4(b) or Section 4(c), as applicable, of the Employment Agreement, payable at the times set forth in, and subject to
the terms and conditions of, the Employment Agreement. In addition, to the extent not already paid, and subject to the terms and
conditions of the Employment Agreement, the Company shall pay or provide to Executive all other payments or benefits described
in Section 3(c) of the Employment Agreement, subject to and in accordance with the terms thereof.
2. Release
of Claims. Executive agrees that, other than with respect to the Retained Claims, the foregoing consideration represents settlement
in full of all outstanding obligations owed to Executive by the Company, any of its direct or indirect subsidiaries and any of
their current and former officers, directors, equity holders, managers, employees, agents, investors, attorneys, shareholders,
administrators, benefit plans, plan administrators, insurers, trustees, divisions, and subsidiaries and predecessor and successor
corporations and assigns (collectively, the “Releasees”). Executive, on his own behalf and on behalf of any
of Executive’s heirs, family members, executors, agents, and assigns, other than with respect to the Retained Claims, hereby
and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue,
any claim, complaint, charge, duty, obligation, or cause of action relating to any matters of any kind, whether presently known
or unknown, suspected or unsuspected, that Executive may possess against any of the Releasees arising from any omissions, acts,
facts, or damages that have occurred up until and including the date Executive signs this Agreement, including, without limitation:
(a) any
and all claims relating to or arising from Executive’s employment or service relationship with the Company or any of its
direct or indirect subsidiaries and the termination of that relationship;
(b) any
and all claims relating to, or arising from, Executive’s right to purchase, or actual purchase of any shares of stock or
other equity interests of the Company or any of its subsidiaries, including, without limitation, any claims for fraud, misrepresentation,
breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal
law;
(c) any
and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation;
breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory
estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent
or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander;
negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;
(d) any
and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil
Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990;
the Equal Pay Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit
Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the
Family and Medical Leave Act; and the Sarbanes-Oxley Act of 2002;
(e) any
and all claims for violation of the federal or any state constitution; and
(f)
any and all claims arising out of any other laws and regulations relating to employment or employment discrimination.
Executive
agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release
as to the matters released. This release does not release claims that cannot be released as a matter of law, including, but not
limited to, Executive’s right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission,
or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws
related to employment, against the Company (with the understanding that Executive’s release of claims herein bars Executive
from recovering such monetary relief from the Company or any Releasee), claims for unemployment compensation or any state disability
insurance benefits pursuant to the terms of applicable state law, claims to continued participation in certain of the Company’s
group benefit plans pursuant to the terms and conditions of COBRA, claims to any benefit entitlements vested as the date of separation
of Executive’s employment, pursuant to written terms of any employee benefit plan of the Company or its affiliates and Executive’s
right under applicable law and any Retained Claims. This release further does not release claims for breach of Section 3(c), Section
4(b) or Section 4(c) of the Employment Agreement or any rights you may have in your capacity as an equityholder in the Company.
3. Acknowledgment
of Waiver of Claims under ADEA. Executive understands and acknowledges that Executive is waiving and releasing any rights
Executive may have under the Age Discrimination in Employment Act of 1967 (the “ADEA”), and that this waiver
and release is knowing and voluntary. Executive understands and agrees that this waiver and release does not apply to any rights
or claims that may arise under the ADEA after the Effective Date of this Agreement. Executive understands and acknowledges that
the consideration given for this waiver and release is in addition to anything of value to which Executive was already entitled.
Executive further understands and acknowledges that Executive has been advised by this writing that: (a) Executive should consult
with an attorney prior to executing this Agreement; (b) Executive has 21 days within which to consider this Agreement; (c) Executive
has 7 days following Executive’s execution of this Agreement to revoke this Agreement pursuant to written notice to the
Chief Executive Officer or General Counsel of the Company; (d) this Agreement shall not be effective until after the revocation
period has expired; and (e) nothing in this Agreement prevents or precludes Executive from challenging or seeking a determination
in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for
doing so, unless specifically authorized by federal law. In the event Executive signs this Agreement and returns it to the Company
in less than the 21 day period identified above, Executive hereby acknowledges that Executive has freely and voluntarily chosen
to waive the time period allotted for considering this Agreement.
4. Severability.
In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or
is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue
in full force and effect without said provision or portion of provision.
5. No
Oral Modification. This Agreement may only be amended in a writing signed by Executive and a duly authorized officer of the
Company.
6. Governing
Law; Notice; Counterparts; Dispute Resolution. This Agreement shall be subject to the provisions of Sections 12(a), (c), (d)
and (j) of the Employment Agreement.
7. Effective
Date. If Executive has attained or is over the age of 40 as of the date of Executive’s termination of employment, then
Executive has seven days after Executive signs this Agreement to revoke it and this Agreement will become effective on the eighth
day after Executive signed this Agreement, so long as it has not been revoked by Executive before that date (the “Effective
Date”). If Executive has not attained the age of 40 as of the date of Executive’s termination of employment, then
the Effective Date shall be the date on which Executive signs this Agreement.
8. Voluntary
Execution of Agreement. Executive understands and agrees that Executive executed this Agreement voluntarily, without any duress
or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of Executive’s
claims against the Company and any of the other Releasees to the extent set forth in this Agreement. Executive acknowledges that:
(a) Executive has read this Agreement; (b) Executive has not relied upon any representations or statements made by the Company
that are not specifically set forth in this Agreement; (c) Executive has been represented in the preparation, negotiation, and
execution of this Agreement by legal counsel of his own choice or has elected not to retain legal counsel; (d) Executive understands
the terms and consequences of this Agreement and of the releases it contains; and (e) Executive is fully aware of the legal and
binding effect of this Agreement.
[Signature
Page Follows]
IN
WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.
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EXECUTIVE |
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Dated:
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John T. McClain |
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COMPANY |
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Dated: |
By:
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Name: |
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Title: |
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A-4
Exhibit 10.2
LINDBLAD
EXPEDITIONS HOLDINGS, INC.
2015 LONG-TERM INCENTIVE PLAN
FORM
OF STOCK OPTION GRANT NOTICE
Capitalized terms not specifically
defined in this Stock Option Grant Notice (the “Grant Notice”) have the meanings given to them in the
2015 Long-Term Incentive Plan (as amended from time to time, the “Plan”) of Lindblad Expeditions Holdings,
Inc. (the “Company”).
The Company has granted
to the participant listed below (“Participant”) the stock
option described in this Grant Notice (the “Option”), subject to the terms and conditions of the Plan
and the Stock Option Agreement attached as Exhibit A (the “Agreement”),
both of which are incorporated into this Grant Notice by reference.
Participant: |
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Grant Date: |
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Exercise Price per Share: |
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Shares Subject to the Option: |
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Final Expiration Date: |
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Vesting Commencement Date: |
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Vesting Schedule: |
Subject to the terms of the Agreement, the Option will vest and become exercisable in equal installments on each of the first four anniversaries of the Vesting Commencement Date. |
Type of Option |
¨ Incentive Stock Option ý Non-Qualified Stock Option |
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By Participant’s
signature below, Participant agrees to be bound by the terms of this Grant Notice, the Plan and the Agreement. Participant has
reviewed the Plan, this Grant Notice and the Agreement in their entirety, has had an opportunity to obtain the advice of counsel
prior to executing this Grant Notice and fully understands all provisions of the Plan, this Grant Notice and the Agreement. Participant
hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions
arising under the Plan, this Grant Notice or the Agreement.
LINDBLAD EXPEDITIONS HOLDINGS, INC. |
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PARTICIPANT |
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By: |
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Name: |
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Name: |
Title: |
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Exhibit A
STOCK OPTION AGREEMENT
Capitalized terms not specifically
defined in this Agreement have the meanings specified in the Grant Notice or, if not defined in the Grant Notice, in the Plan.
ARTICLE
I.
GENERAL
1.1 Grant of Option.
The Company has granted to Participant the Option effective as of the grant date set
forth in the Grant Notice (the “Grant Date”).
1.2 Incorporation
of Terms of Plan. The Option is subject to the terms and conditions set forth in this Agreement and the Plan, which is incorporated
herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan will control.
ARTICLE
II.
PERIOD OF EXERCISABILITY
2.1 Commencement
of Exercisability. The Option will vest and become exercisable according to the vesting schedule in the Grant Notice (the “Vesting
Schedule”) except that any fraction of a Share as to which the Option would be vested or exercisable will be accumulated
and will vest and become exercisable only when a whole Share has accumulated. Notwithstanding anything in the Grant Notice, the
Plan or this Agreement to the contrary, unless the Administrator otherwise determines, the Option will immediately expire and be
forfeited as to any portion that is not vested and exercisable as of the date the Participant ceases to be a Service Provider (“Termination
of Service”) for any reason.
2.2 Duration of Exercisability.
The Vesting Schedule is cumulative. Any portion of the Option which vests and becomes exercisable will remain vested and exercisable
until the Option expires. The Option will be forfeited immediately upon its expiration.
2.3 Expiration
of Option. The Option may not be exercised to any extent by anyone after, and will expire on, the first of the following
to occur:
(a) The
final expiration date in the Grant Notice;
(b) Except
as the Administrator may otherwise approve, the expiration of three (3) months from the date of Participant’s Termination
of Service, unless Participant’s Termination of Service is for Cause or by reason of Participant’s death or Disability;
(c) Except
as the Administrator may otherwise approve, the expiration of one (1) year from the date of Participant’s Termination of
Service by reason of Participant’s death or Disability; and
(d) Except
as the Administrator may otherwise approve, Participant’s Termination of Service for Cause.
As used in this Agreement,
“Cause” means (i) if Participant is a party to a written employment or consulting agreement with the
Company or its Subsidiary in which the term “cause” is defined (a “Relevant Agreement”),
“Cause” as defined in the Relevant Agreement, and (ii) if no Relevant Agreement exists, (A) the Administrator’s
determination that Participant failed to substantially perform Participant’s duties (other than a failure resulting from
Participant’s Disability); (B) the Administrator’s determination that Participant failed to carry out, or comply with
any lawful and reasonable directive of the Board or Participant’s immediate supervisor; (C) Participant’s conviction,
plea of no contest, plea of nolo contendere, or imposition of unadjudicated probation for any felony or indictable offense or crime
involving moral turpitude; (D) Participant’s unlawful use (including being under the influence) or possession of illegal
drugs on the premises of the Company or any of its Subsidiaries or while performing Participant’s duties and responsibilities
for the Company or any of its Subsidiaries; or (E) Participant’s commission of an act of fraud, embezzlement, misappropriation,
misconduct, or breach of fiduciary duty against the Company or any of its Subsidiaries.
ARTICLE
III.
EXERCISE OF OPTION
3.1 Person Eligible
to Exercise. During Participant’s lifetime, only Participant may exercise the Option. After Participant’s death,
any exercisable portion of the Option may, prior to the time the Option expires, be exercised by Participant’s Designated
Beneficiary as provided in the Plan.
3.2 Partial Exercise.
Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised, in whole or in part,
according to the procedures in the Plan at any time prior to the time the Option or portion thereof expires, except that the Option
may only be exercised for whole Shares.
3.3 Tax Withholding.
(a) The
Company has the right and option, but not the obligation, to treat Participant’s failure to provide timely payment in accordance
with the Plan of any withholding tax arising in connection with the Option as Participant’s election to satisfy all or any
portion of the withholding tax by requesting the Company retain Shares otherwise issuable under the Option.
(b) Participant
acknowledges that Participant is ultimately liable and responsible for all taxes owed in connection with the Option, regardless
of any action the Company or any Subsidiary takes with respect to any tax withholding obligations that arise in connection with
the Option. Neither the Company nor any Subsidiary makes any representation or undertaking regarding the treatment of any tax withholding
in connection with the awarding, vesting or exercise of the Option or the subsequent sale of Shares. The Company and the Subsidiaries
do not commit and are under no obligation to structure the Option to reduce or eliminate Participant’s tax liability.
ARTICLE
IV.
OTHER PROVISIONS
4.1 Adjustments.
Participant acknowledges that the Option is subject to adjustment, modification and termination in certain events as provided in
this Agreement and the Plan.
4.2 Notices.
Any notice to be given under the terms of this Agreement to the Company must be in writing and addressed to the Company in care
of the Company’s Secretary at the Company’s principal office or the Secretary’s then-current email address or
facsimile number. Any notice to be given under the terms of this Agreement to Participant must be in writing and addressed to Participant
(or, if Participant is then deceased, to the person entitled to exercise the Option) at Participant’s last known mailing
address, email address or facsimile number in the Company’s personnel files. By a notice given pursuant to this Section,
either party may designate a different address for notices to be given to that party. Any notice will be deemed duly given when
actually received, when sent by email, when sent by certified mail (return receipt requested) and deposited with postage prepaid
in a post office or branch post office regularly maintained by the United States Postal Service, when delivered by a nationally
recognized express shipping company or upon receipt of a facsimile transmission confirmation.
4.3 Titles. Titles
are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.
4.4 Conformity to
Securities Laws. Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the
extent necessary with all Applicable Laws and, to the extent Applicable Laws permit, will be deemed amended as necessary to conform
to Applicable Laws.
4.5 Successors and
Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement
will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in the
Plan, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and
assigns of the parties hereto.
4.6 Limitations Applicable
to Section 16 Persons. Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section
16 of the Exchange Act, the Plan, the Grant Notice, this Agreement and the Option will be subject to any additional limitations
set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3) that
are requirements for the application of such exemptive rule. To the extent Applicable Laws permit, this Agreement will be deemed
amended as necessary to conform to such applicable exemptive rule.
4.7 Entire Agreement.
The Plan, the Grant Notice and this Agreement (including any exhibit hereto) constitute the entire agreement of the parties
and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject
matter hereof.
4.8 Agreement Severable.
In the event that any provision of the Grant Notice or this Agreement is held illegal or invalid, the provision will be severable
from, and the illegality or invalidity of the provision will not be construed to have any effect on, the remaining provisions of
the Grant Notice or this Agreement.
4.9 Limitation on
Participant’s Rights. Participation in the Plan confers no rights or interests other than as herein provided. This Agreement
creates only a contractual obligation on the part of the Company as to amounts payable and may not be construed as creating a trust.
Neither the Plan nor any underlying program, in and of itself, has any assets. Participant will have only the rights of a general
unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the Option, and
rights no greater than the right to receive the Shares as a general unsecured creditor with respect to the Option, as and when
exercised pursuant to the terms hereof.
4.10 Not a Contract
of Employment. Nothing in the Plan, the Grant Notice or this Agreement confers upon Participant any right to continue in the
employ or service of the Company or any Subsidiary or interferes with or restricts in any way the rights of the Company and its
Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for
any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between
the Company or a Subsidiary and Participant.
4.11 Counterparts.
The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to Applicable
Law, each of which will be deemed an original and all of which together will constitute one instrument.
4.12 Incentive Stock
Options. If the Option is designated as an Incentive Stock Option:
(a) Participant
acknowledges that to the extent the aggregate fair market value of shares (determined as of the time the option with respect to
the shares is granted) with respect to which stock options intended to qualify as “incentive stock options” under Section 422
of the Code, including the Option, are exercisable for the first time by Participant during any calendar year exceeds $100,000
or if for any other reason such stock options do not qualify or cease to qualify for treatment as “incentive stock options”
under Section 422 of the Code, such stock options (including the Option) will be treated as non-qualified stock options. Participant
further acknowledges that the rule set forth in the preceding sentence will be applied by taking the Option and other stock options
into account in the order in which they were granted, as determined under Section 422(d) of the Code. Participant also acknowledges
that if the Option is exercised more than three (3) months after Participant’s Termination of Service, other than by reason
of death or disability, the Option will be taxed as a Non-Qualified Stock Option.
(b) Participant
will give prompt written notice to the Company of any disposition or other transfer of any Shares acquired under this Agreement
if such disposition or other transfer is made (a) within two (2) years from the Grant Date or (b) within one (1) year after the
transfer of such Shares to Participant. Such notice will specify the date of such disposition or other transfer and the amount
realized, in cash, other property, assumption of indebtedness or other consideration, by Participant in such disposition or other
transfer.
* * * * *
A-4
Exhibit 99.1
Lindblad Expeditions Holdings, Inc.
Adds John McClain as Chief Financial Officer
NEW
YORK, October 28, 2015 /PRNewswire/ -- Lindblad Expeditions Holdings, Inc. (NASDAQ: LIND; “Lindblad” or the "Company"),
a global provider of expedition cruises and adventure travel experiences, announced today it has named John McClain as its Chief
Financial Officer. He will join Lindblad on November 10, 2015. Mr. McClain brings a long history of leadership positions in a wide
range of public companies, most recently serving as the chief financial officer of The Jones Group Inc. until its sale to Sycamore
Partners in April 2014. Prior to Jones, he held senior positions at Avis Budget Group, Inc., Cendant Corporation, Sirius Satellite
Radio Inc., ITT Corporation and Arthur Andersen & Co.
Lindblad’s
appointment of Mr. McClain was the result of a national CFO search started after the company announced it would become a public
company through a merger with Capitol Acquisition Corp. II. Current Chief Operating Officer Ian Rogers, who previously also held
the CFO title, will continue as COO and be focused on driving Lindblad’s existing operations and its significant growth initiatives.
Lindblad’s
President & CEO Sven-Olof Lindblad said, "I am thrilled that John is joining our team. He is a seasoned executive with
significant experience leading and overseeing all of the financial functions of large complex businesses. He has had a distinguished
career that spans more than two decades across a variety of industries including notable travel and hospitality companies."
Mark
D. Ein, Chairman of Lindblad added, "John will be a great addition to our leadership team at Lindblad bringing public company,
financial market and M&A expertise as we execute our plans to expand the fleet and opportunistically seek compelling strategic
acquisitions to grow our platform.”
Mr.
McClain will be based at Lindblad’s headquarters in New York.
About Lindblad Expeditions Holdings,
Inc.
Lindblad
Expeditions Holdings, Inc. is an expedition travel company that works in partnership with National Geographic to inspire people
to explore and care about the planet. The organizations work in tandem to produce innovative marine expedition programs and to
promote conservation and sustainable tourism around the world. The partnership's educationally oriented voyages allow guests to
interact with and learn from leading scientists, naturalists and researchers while discovering stunning natural environments, above
and below the sea, through state-of-the-art exploration tools.
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