Document:

AmendmentNo1toTermLoanAgmt

    
    

AMENDMENT NO. 1 
TO TERM LOAN AGREEMENT
dated as of
January 23, 2013
Among
ABERCROMBIE & FITCH MANAGEMENT CO.
as Borrower,
ABERCROMBIE & FITCH CO., 
as Parent,
THE LENDING INSTITUTIONS NAMED HEREIN,
as Lenders,
PNC BANK, NATIONAL ASSOCIATION,
as Agent  
 
 
 

    

EXECUTION VERSION

AMENDMENT NO. 1 TO TERM LOAN AGREEMENT

This Amendment No. 1 to Term Loan Agreement (this “Amendment”) is made as of January 23, 2013, by and among ABERCROMBIE & FITCH MANAGEMENT CO., a Delaware corporation (the “Company”), as the Borrower, ABERCROMBIE & FITCH CO., a Delaware corporation (the “Parent”), the lenders party hereto (each a “Lender” and collectively, the “Lenders”), and PNC BANK, NATIONAL ASSOCIATION as the administrative agent (the “Agent”).
RECITALS:

A.    The Company, the Parent, the Agent and the Lenders are parties to the Term Loan Agreement, dated as of February 24, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”).
B.    The Company, the Agent and the Lenders desire to further amend the Term Loan Agreement as more fully set forth herein.
C.    Each capitalized term used herein and not otherwise defined herein shall have the same meaning set forth in the Term Loan Agreement as amended.
AGREEMENT:

In consideration of the premises and mutual covenants herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company, the Agent and the Lenders agree as follows:
1.Schedule 1.  Schedule 1 to the Term Loan Agreement shall be amended and restated as set forth at Schedule I to this Amendment.
2.    New Definition.  The following definition shall be added to Section 1.01 of the Term Loan Agreement in the appropriate alphabetical order:
“First Amendment Date” means January 23, 2013.
3.    Amendments to Section 1.01 of the Term Loan Agreement.  Section 1.01 of the Term Loan Agreement shall be amended by amending and restating the definitions of “Maximum Credit Facility Amount” and “Total Commitments” as follows:
“Maximum Credit Facility Amount” means $150,000,000, as such amount may be reduced pursuant to Section 2.09.    
“Total Commitments” means the sum of the Commitments of the Lenders as the same may be decreased pursuant to Section 2.09.  As of the First Amendment Date, the amount of the Total Commitments is $150,000,000.
4.    Amendment to Section 7.07 to the Term Loan Agreement.  Section 7.07 of the Term Loan Agreement shall be amended by amending and restating clause (b) as follows:

“(b)    Coverage Ratio.  The Parent and the Company will not at any time permit the Coverage Ratio to be less than 1.75 to 1.00 at the end of each Testing Period and/or at any time Pro Forma Compliance is required to be demonstrated.”
5.    Conditions Precedent.  The amendments set forth above shall become effective upon the satisfaction of the following conditions precedent:
(a)    this Amendment has been executed by the Company, the Parent, the Agent and the Required Lenders, and counterparts hereof as so executed shall have been delivered to the Agent;
(b)    the Company shall have provided an officer’s certificate that certifies that all representations and warranties of the Credit Parties contained in the Term Loan Agreement or in the other Loan Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the date of this Amendment, except to the extent that such representations and warranties expressly relate to an earlier specified date, in which case such representations and warranties shall have been true and correct in all material respects as of the date when made; 
(c)    each Guarantor has executed and delivered to the Agent the Guarantor Acknowledgment and Agreement attached hereto; 
(d)    the Agent shall have received an executed copy of an amendment to the Revolving Facility in form and substance satisfactory to the Agent; 

(e)    the Company shall have paid to the Agent, for the account of each Lender that signs this Amendment, a 0.05% amendment fee based on each such Lender’s Commitment (after giving effect to this Amendment); and

(f)    the Company shall have paid all reasonable out-of-pocket fees and expenses of the Agent that have been invoiced on or prior to such date in connection with the preparation, negotiation, execution and delivery of this Amendment.

6.    Representations and Warranties.  The Company and the Parent each hereby represents and warrants to the Agent and the Lenders that:  (a) such Credit Party has the legal power and authority to execute and deliver this Amendment; (b) the officials executing this Amendment have been duly authorized to execute and deliver the same and bind such Credit Party with respect to the provisions hereof; (c) the execution and delivery hereof by such Credit Party and the performance and observance by such Credit Party of the provisions hereof do not violate or conflict with the organizational documents of such Credit Party or any law applicable to such Credit Party; (d) no Default or Event of Default exists under the Term Loan Agreement, nor will any occur immediately after the execution and delivery of this Amendment or by the performance or observance of any provision hereof; and (e) this Amendment constitutes a valid and binding obligation of such Credit Party in every respect, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.
7.    Term Loan Agreement Unaffected.  Each reference that is made in the Term Loan Agreement or any other Loan Document shall hereafter be construed as a reference to the Term Loan Agreement as amended hereby.  Except as herein otherwise specifically provided, all provisions of the Term Loan Agreement shall remain in full force and effect and be unaffected hereby.

8.    Counterparts.  This Amendment may be executed in any number of counterparts, by different parties hereto in separate counterparts and by facsimile signature, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement.
9.    Entire Agreement.  This Amendment is specifically limited to the matters expressly set forth herein.  This Amendment and all other instruments, agreements and documents executed and delivered in connection with this Amendment embody the final, entire agreement among the parties hereto with respect to the subject matter hereof and supersede any and all prior commitments, agreements, representations and understandings, whether written or oral, relating to the matters covered by this Amendment, and may not be contradicted or varied by evidence of prior, contemporaneous or subsequent oral agreements or discussions of the parties hereto.  There are no oral agreements among the parties hereto relating to the subject matter hereof or any other subject matter relating to the Term Loan Agreement.
10.    Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial.  
(a)    THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF OHIO WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.  TO THE FULLEST EXTENT PERMITTED BY LAW, THE COMPANY AND THE PARENT EACH HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF OHIO GOVERNS THIS AGREEMENT.  Any legal action or proceeding with respect to this Agreement or any other Loan Document may be brought in the Court of Common Pleas of Cuyahoga County, Ohio, or of the United States for the Northern District of Ohio, and, by execution and delivery of this Agreement, the Company and the Parent each hereby irrevocably accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts.  The Company and the Parent each hereby further irrevocably consents to the service of process out of any of the aforementioned courts in any such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to such Credit Party at its address for notices pursuant to Section 11. 04 of the Term Loan Agreement, such service to become effective 30 days after such mailing or at such earlier time as may be provided under applicable law.  Nothing herein shall affect the right of the Agent or any Lender to serve process in any other manner permitted by law or to commence legal proceedings or otherwise proceed against any Credit Party in any other jurisdiction. 
(b)    The Company and the Parent each hereby irrevocably waives any objection that it may now or hereafter have to the laying of venue of any of the aforesaid actions or proceedings arising out of or in connection with this Agreement or any other Loan Document brought in the courts referred to in Section 10(a) above and hereby further irrevocably waives and agrees not to plead or claim in any such court that any such action or proceeding brought in any such court has been brought in an inconvenient forum.
(c)    EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT (INCLUDING, WITHOUT LIMITATION, ANY AMENDMENTS, WAIVERS OR OTHER MODIFICATIONS RELATING THERETO), OR THE TRANSACTIONS CONTEMPLATED HEREBY.  EACH PARTY HERETO HEREBY (A) CERTIFIES THAT 

NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS PARAGRAPH. 
(Signature pages follow.)

IN WITNESS WHEREOF, this Amendment has been duly executed and delivered as of the date first above written.
	
		
	 
	ABERCROMBIE & FITCH MANAGEMENT CO.

	 
	 

	 
	By:       /s/ Everett Gallagher

	 
	Name:  Everett Gallagher

	 
	Title:    Senior Vice President & Treasurer

	
		
	 
	ABERCROMBIE & FITCH CO.

	 
	 

	 
	By:       /s/ Everett Gallagher

	 
	Name:  Everett Gallagher

	 
	Title:    Senior Vice President—Tax, Treasury and
             Risk Management & Treasurer

	
		
	 
	PNC BANK, NATIONAL ASSOCIATION,
as Agent and a Lender

	 
	 

	 
	By:       /s/ Thomas E. Redmond

	 
	Name:  Thomas E. Redmond

	 
	Title:    Senior Vice President

	
		
	 
	JPMORGAN CHASE BANK, N.A.,
as a Lender

	 
	 

	 
	By:       /s/ Brendan Korb

	 
	Name:  Brendan Korb

	 
	Title:    Vice President

	
		
	 
	FIFTH THIRD BANK

	 
	 

	 
	By:       /s/ Michael J. Schaltz, Jr.

	 
	Name:  Michael J. Schaltz, Jr.

	 
	Title:    Vice President

	
		
	 
	THE HUNTINGTON NATIONAL BANK

	 
	 

	 
	By:       /s/ Amanda M. Sigg 

	 
	Name:  Amanda M. Sigg 

	 
	Title:    Vice President

	
		
	 
	HSBC BANK USA, N.A.

	 
	 

	 
	By:       /s/ Alan Z. Zinser  

	 
	Name:  Alan Z. Zinser  

	 
	Title:    VP - Global Relationship Manager

	
		
	 
	CITIZENS BANK OF PENNSYLVANIA

	 
	 

	 
	By:       /s/ Carl S. Tabacjar, Jr.  

	 
	Name:  Carl S. Tabacjar, Jr.  

	 
	Title:    Vice President

	
		
	 
	SUMITOMO MITSUI BANKING CORPORATION

	 
	 

	 
	By:       /s/ David W. Kee 

	 
	Name:  David W. Kee 

	 
	Title:    Managing Director 

	
		
	 
	U.S. BANK NATIONAL ASSOCIATION

	 
	 

	 
	By:       /s/ Mark D. Rodgers 

	 
	Name:  Mark D. Rodgers 

	 
	Title:    Assistant Vice President

Schedule 1
Schedule 1
Lenders and Commitments
	
						
	Lender
	Total Commitment
	Fixed Commitment Percentage as of the Closing Date

	PNC Bank, National Association
	

	$30,000,000
	

	20.0000000
	%

	JPMorgan Chase Bank, N.A.
	

	$30,000,000
	

	20.0000000
	%

	Fifth Third Bank
	

	$20,000,000
	

	13.3333333
	%

	Citizens Bank of Pennsylvania
	

	$20,000,000
	

	13.3333333
	%

	HSBC Bank USA, N.A.
	

	$12,500,000
	

	8.3333333
	%

	The Huntington National Bank
	

	$12,500,000
	

	8.3333333
	%

	Sumitomo Mitsui Banking Corporation
	

	$12,500,000
	

	8.3333333
	%

	U.S. Bank National Association
	

	$12,500,000
	

	8.3333333
	%

	Total:
	

	$150,000,000
	

	100.0000000
	%

GUARANTOR ACKNOWLEDGMENT AND AGREEMENT

Each of the undersigned (collectively, the “Guarantors” and, individually, “Guarantor”) consents and agrees to and acknowledges the terms of the foregoing Amendment No. 1 to Term Loan Agreement, dated as of January 23, 2013 (the “Amendment”).  Each Guarantor specifically acknowledges the terms of and consents to the amendments set forth in the Amendment.  Each Guarantor further agrees that its obligations pursuant to the Credit Party Guaranty shall remain in full force and effect and be unaffected hereby. 
EACH GUARANTOR HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS GUARANTOR ACKNOWLEDGMENT AND AGREEMENT OR THE AMENDMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH GUARANTOR HEREBY CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER.
(Signature page follows.)

IN WITNESS WHEREOF, this Guarantor Acknowledgment and Agreement has been duly executed and delivered as of the date of the Amendment.
	
		
	 
	ABERCROMBIE & FITCH CO.

	 
	 

	 
	By:       /s/ Everett Gallagher

	 
	Name:  Everett Gallagher

	 
	Title:    Senior Vice President—Tax, Treasury and
             Risk Management & Treasurer

	
		
	 
	ABERCROMBIE & FITCH HOLDING CORPORATION
A&F TRADEMARK, INC.
ABERCROMBIE & FITCH FULFILLMENT COMPANY
ABERCROMBIE & FITCH DISTRIBUTION COMPANY
J.M.H. TRADEMARK, INC.
J.M. HOLLISTER, LLC
ABERCROMBIE & FITCH TRADING CO.
ABERCROMBIE & FITCH STORES, INC.
FAN COMPANY, LLC
HOLLISTER CO.
ABERCROMBIE & FITCH INTERNATIONAL, INC.
GILLY HICKS, LLC
DFZ, LLC
A&F CANADA HOLDING CO.
CANOE, LLC
CROMBIE, LLC
RUEHL NO. 925, LLC
AFH PUERTO RICO LLC
NSOP, LLC

	 
	 

	 
	By:       /s/ Everett Gallagher

	 
	Name:  Everett Gallagher

	 
	Title:    Senior Vice President & Treasurer

	
		
	 
	ABERCROMBIE & FITCH PROCUREMENT SERVICES, LLC 
By:  Abercrombie & Fitch Trading Co., its Sole Member

	 
	 

	 
	By:       /s/ Everett Gallagher

	 
	Name:  Everett Gallagher

	 
	Title:    Senior Vice President & Treasurer
            Abercrombie & Fitch Trading Co.QuickLinks
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 Exhibit 10.1  

 TE Connectivity Ltd.

2007 Stock and Incentive Plan  

TERMS AND CONDITIONS

OF

PERFORMANCE STOCK UNIT AWARD

 <XXXX>  

        PERFORMANCE
STOCK UNIT AWARD made as of XXXX. 

        1.    Grant of Award.    TE Connectivity Ltd. (the "Company") has granted you XXX TE Connectivity Performance
Stock Units, subject to the provisions of this Award Agreement. The Company will hold the Performance Stock Units in a bookkeeping account on your behalf until they become payable or are forfeited or
cancelled. 

        2.    Payment Amount.    Each Performance Stock Unit represents one (1) Share of Common Stock. 

        3.    Form of Payment.    Vested Performance Stock Units will be redeemed solely for Shares, subject to
Section 15. 

        4.    Performance Stock Units/Dividends.    Performance Stock Units are a promise to deliver Common Stock upon a
specified delivery date, provided that certain vesting and performance requirements are met, as described in this Agreement and Appendix A. For each Performance Stock Unit that is granted to
you under this Award (based on the target number of units awarded), you will be credited with a Dividend Equivalent Unit (DEU) for any cash or stock dividends distributed by the Company on Company
Common Stock. DEUs will be calculated at the same dividend rate paid to other holders of Common Stock. The number of DEUs that will vest and be delivered to you in the form of Shares will depend on
the actual number of underlying Performance Stock Units that are earned and vested, as more fully described in this Agreement and Appendix A. Thus, the number of Shares delivered in conjunction
with the DEUs credited to your Performance Stock Unit award will be adjusted (upward or downward) to reflect the actual number of Performance Stock Units that are earned and vested. 

        5.    Time of Delivery.    Except as otherwise provided for in this Award Agreement, vested Performance Stock Units
and Dividend Equivalent Units shall be delivered to participants in the form of Shares as soon as is administratively feasible following the specified "Delivery Date", as described in
paragraph 6 below. 

        6.    Normal Vesting.    Subject to the attainment of the performance metrics described in Appendix A, your
Performance Stock Unit Award will vest on the later of (a) the third anniversary of the Grant Date or (b) the "Certification Date" for the performance results for the third year of the
"Performance Cycle", as more fully described in Appendix A. Except as provided in paragraphs 8, 9, 10 and 11 below, the Delivery Date of the Shares will be after the November 30th
following the end of the Performance Cycle (as defined in Appendix A), but in any case, no earlier than the Certification Date following the close of the Performance Cycle and no later than
90 days after such November 30th. No credit will be given for periods following Termination of Employment. 

        7.    Termination of Employment.    Any Performance Stock Units and DEUs that have not vested as of your Termination
of Employment, other than as set forth in paragraphs 8, 9, 10 and 11, will immediately be forfeited, and your rights with respect to those Performance
Stock Units and DEUs will end. 

1

 

        8.    Death or Disability.    If you die or become Disabled, your Performance Stock Unit Award will vest as follows:
(a) Performance Stock Units that have been earned as of the Termination of Employment under the terms and conditions of Appendix A will become immediately vested ; (b) Performance
Stock Units that are eligible to be earned in the year in which your Termination of Employment occurs will vest pro rata (standard rounding to the nearest Unit, in full-month increments)
based on (i) the number of whole months that you have completed from the first day of the fiscal year in which your Termination of Employment occurs divided by twelve (12), times
(ii) the number of Performance Stock Units that are actually earned for that fiscal year in accordance with the terms of Appendix A; and (c) any remaining Performance Stock Units
will be forfeited. Such vested Performance Stock Units will be delivered to you after the November 30th following the fiscal year of Disability or Death, but in any case, no earlier than the
Certification Date for the performance results following the close of the fiscal year in which your Death or Disability occurs and no later than 90 days after such November 30th. If you
are deceased, the payment of your vested Performance Stock Units on and after the delivery date described in the preceding sentence will be made to your estate after the Committee or its designee has
determined that the payee is the duly appointed executor or administrator of your estate. 

        9.    Retirement.    If you have attained age 55 and have completed at least five years of service, have performed
satisfactorily, as determined in the sole discretion of your manager, and are not terminated for Cause, your Performance Stock Unit Award will vest as follows: (a) Performance Stock Units that
have been earned as of the Termination of Employment under the terms and conditions of Appendix A will become immediately vested; (b) Performance Stock Units that are eligible to be
earned in the year in which your Termination of Employment occurs will vest pro rata (standard rounding to the nearest Unit, in full-month increments) based on (i) the number of
whole months that you have completed from the first day of the fiscal year in which your Termination of Employment occurs divided by twelve (12), times (ii) the number of Performance Stock
Units that are actually earned for that fiscal year in accordance with the terms of Appendix A; and (c) any remaining Performance Stock Units will be immediately forfeited. Such vested
Performance Stock Units will be delivered to you on the later of: (1) after the November 30th following the fiscal year of Termination, but in any case, no earlier than the Certification
Date for the performance results following the close of the fiscal year in which your Termination occurs and no later than 90 days after such November 30th or (2) the date that is
six months following your Termination of Employment. Notwithstanding the terms of this paragraph 9, Termination of Employment within 12 months of the Grant Date will result in the
immediate forfeiture of your Performance Stock Unit Award, except as otherwise provided for in paragraphs 8, 10, or 11. 

        10.    Change in Control.    Except as may be otherwise provided by the Committee, if your employment is terminated
following a Change in Control, as defined in the Plan, your Performance Stock Unit Award will become vested as described below, provided that: 

        (a)   your
employment is terminated by the Company or a Subsidiary for any reason other than Cause, Disability or Death in the twelve-month period following the Change in
Control; or 

        (b)   you
terminate your employment with the Company or your employing Subsidiary within the twelve-month period following the Change in Control as a result of, and within
180 days following, the occurrence of one of the following events: 

	i.
	the
Company or your employing Subsidiary (1) assigns or causes to be assigned to you duties inconsistent in any material respect with your position as
in effect immediately prior to the Change in Control; (2) makes or causes to be made any material adverse change in your position, authority, duties or responsibilities; or (3) takes or
causes to be taken any other action which, in your reasonable judgment, would cause you to violate your ethical or professional obligations (after written notice of such judgment has been 

2

 

provided
by you to the Company and the Company has been given a 15-day period within which to cure such action), or which results in a significant diminution in such position, authority,
duties or responsibilities; or  

	ii.
	the
Company or your employing subsidiary, without your consent, (1) requires you to relocate to a principal place of employment more than fifty
(50) miles from your existing place of employment; or (2) reduces your base salary, annual bonus, or retirement, welfare, stock incentive, perquisite (if any) and other benefits taken as
a whole. 

If
you meet the requirements described in the previous sentence, your Performance Stock Unit Award will vest as follows: (A) Performance Stock Units that have been earned as of the Termination
of Employment under the terms and conditions of Appendix A will become immediately vested; (B) Performance Stock Units that are eligible to be earned in the year in which your
Termination of Employment occurs will vest pro rata (standard rounding to the nearest Unit, in full-month increments) based on (i) the number of whole months that you have completed
from the first day of the fiscal year in which your Termination of Employment occurs divided by twelve (12), times (ii) the number of Performance Stock Units that are actually earned for that
fiscal year in accordance with the terms of Appendix A; and (C) any remaining Performance Stock Units will be immediately forfeited. Such vested Performance Stock Units will be delivered
on the later of (1) after the November 30th following the fiscal year of Termination, but in any case, no earlier than
the Certification Date for the performance results following the close of the fiscal year in which your Termination occurs and no later than 90 days after such November 30th or
(2) the date that is six months following your Termination of Employment. 

        11.    Termination of Employment with a TE Affiliate as a Result of a Divestiture or Outsourcing.    If the business
in which you are employed is being separated from the Company as a result of a Disposition of Assets, Disposition of a Subsidiary or an Outsourcing Agreement, and, as of the closing date of the
applicable transaction you are designated in the transaction documents (either individually or by classification) as a Business Employee (or similar designation) who will be terminating employment
with the Company either because (i) you will remain with the separated business after the transaction or be transferred to the employment of the buyer or Outsourcing Agent as a result of the
transaction, or (ii) you will not be offered continued employment by the Company, buyer or Outsourcing Agent after the close of the transaction, then your Performance Stock Unit Award will vest
as follows: (a) Performance Stock Units that have been earned as of the closing date of the applicable transaction under the terms and conditions of Appendix A will become immediately
vested; (b) Performance Stock Units that are eligible to be earned in the year in which the closing date of the applicable transaction occurs will vest pro rata (standard rounding to the
nearest Unit, in full-month increments) on the closing date based on (i) the number of whole months from the first day of the fiscal year in which the closing date of the applicable
transaction occurs through the closing date of the applicable transaction divided by twelve (12), times (ii) the number of Performance Stock Units that are actually earned for that performance
year in accordance with the terms of Appendix A; and (c) any remaining Performance Stock Units will be forfeited. In the case of a Divestiture through a Disposition of Assets or an
Outsourcing Agreement, such vested Performance Stock Units will be delivered on the later of (1) after the November 30th following the fiscal year of Termination, but in any case, no
earlier than the Certification Date for the performance results following the close of the fiscal year in which your Termination occurs and no later than 90 days after such
November 30th or (2) the date that is six months following your Termination of Employment. In the case of a Divestiture through a Disposition of a Subsidiary, the
vested Performance Stock Units will be delivered after the November 30th following the close of the fiscal year in which the sale of the subsidiary takes place. In no event will such vested
shares be delivered before the Certification Date for performance results following the close of the fiscal year in which the sale of the subsidiary takes place or later than 90 days after such
November 30th. If you become entitled to the pro rated vesting described in this Section 11, you will 

3

 

not
be entitled to any further vesting in your Performance Stock Unit Award unless you are transferred to employment with the Company in a position outside of the business that is being separated from
the Company (with the intent of continued employment with the Company outside of the separated business) after the closing date of the applicable transaction, but prior to your termination of
employment as a result of the Disposition of Assets, Disposition of a Subsidiary or an Outsourcing Agreement. 

        Notwithstanding
the foregoing, you will not be eligible for the pro-rata vesting if, (i) your Termination of Employment occurs on or prior to the closing date of such
Disposition of Assets or
Disposition of a Subsidiary, as applicable, or on such later date as is specifically provided in the applicable transaction agreement or related agreements, or on the effective date of such
Outsourcing Agreement applicable to you (the "Applicable Employment Date"), and (ii) you are offered Comparable Employment with the buyer, successor company or outsourcing agent, as applicable,
but do not commence such employment on the Applicable Employment Date. 

        For
the purposes of this Section 11, (a) "Comparable Employment" shall mean employment at a base salary rate and bonus target that is at least equal to the base salary rate
and bonus target in effect immediately prior to your termination of employment and at a location that is no more than 50 miles from your job location in effect immediately prior to your termination of
employment; (b) "Disposition of Assets" shall mean the disposition by the Company or a Subsidiary of all or a portion of the assets used by the Company or Subsidiary in a trade or business to
an unrelated corporation or entity; (c) "Disposition of a Subsidiary" shall mean the disposition by the Company or a Subsidiary of its interest in a subsidiary or controlled entity to an
unrelated individual or entity, provided that such subsidiary or entity ceases to be an affiliated company as a result of such disposition; and (d) "Outsourcing Agreement" shall mean a written
agreement between the Company or a Subsidiary and an unrelated third party ("Outsourcing Agent") pursuant to which the Company transfers the performance of services previously performed by employees
of the Company or Subsidiary to the Outsourcing Agent, and the Outsourcing Agreement includes an obligation of the Outsourcing Agent to offer employment to any employee whose employment is being
terminated as a result of or in connection with said Outsourcing Agreement. 

        12.    Responsibility for Taxes.    Regardless of any action the Company or your employer (the "Employer") takes with
respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you
("Tax-Related Items"), by accepting the Award, you acknowledge that the ultimate liability for all Tax-Related Items is and remains your responsibility and may exceed the
amount actually withheld by the Company or the Employer. You further acknowledge that the Company and/or the Employer do not commit to and are under no obligation to structure the terms of the grant
or any aspect of the Performance Stock Units to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result. Further, if you have become subject to tax in
more than one jurisdiction between the date of grant and the date of any relevant taxable event, you acknowledge that the Company and/or the Employer (or former employer, as applicable) may be
required to withhold or account for Tax-Related Items in more than one jurisdiction. 

        Prior
to any relevant taxable or tax withholding event, as applicable, you will pay or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all
Tax-Related Items. In this regard, you authorize the Company and/or the Employer, or their respective agents, at their discretion, to satisfy the obligations with regard to all
Tax-Related Items by one or a combination of the following: 

	(1)
	withholding
from your wages or other cash compensation paid to you by the Company and/or the Employer; or 

4

 

	(2)
	withholding
from proceeds of the sale of Shares acquired upon vesting of the Performance Stock Units either through a voluntary sale or through a mandatory
sale arranged by the Company (on your behalf pursuant to this authorization); or

	(3)
	withholding
in Shares to be issued upon vesting of the Performance Stock Units. 

        To
avoid negative accounting treatment, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other
applicable withholding rates. If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, you are deemed to have been issued the full number of Shares
subject to the vested Performance Stock Units, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items due as a result of any
aspect of your participation in the Plan. 

        Finally,
you shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result
of your participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the Shares or the proceeds of the sale of Shares if you fail to
comply with your obligations in connection with the Tax-Related Items. 

        For
tax withholding purposes, the value of vested Shares will be based on the fair market value defined as the average of the high and low of the stock price reported on the date of
delivery or such other reasonable and permissible date as determined by the Plan Administrator. 

        13.    Transfer of Award.    You may not transfer any interest in Performance Stock Units except by will or the laws
of descent and distribution. Any other attempt to dispose of your interest in Performance Stock Units will be null and void. 

        14.    Covenant; Forfeiture of Award; Agreement to Reimburse Company.    

        (a)   If
you have been terminated for Cause, any unvested Performance Stock Units shall be immediately forfeited and, in addition, you hereby agree and promise immediately to
deliver to the Company the number of Shares (or, in the discretion of the Committee, the cash value of said shares) you received for Performance Stock Units that vested during the period six
(6) months prior to your Termination of Employment through the date of Termination of Employment. 

        (b)   If,
after your Termination of Employment, the Committee determines in its sole discretion that while you were a Company or Subsidiary employee you engaged in activity
that would have constituted grounds for the Company or Subsidiary to terminate your employment for Cause, then you hereby agree and promise immediately to deliver to the Company the number of Shares
(or, in the discretion of the Committee, the cash value of said shares) you received for Performance Stock Units that vested during the period six (6) months prior to your Termination of
Employment through the date of Termination of Employment. 

        (c)   If
the Committee determines, in its sole discretion, that at any time after your Termination of Employment and prior to the second anniversary of your Termination of
Employment you (i) disclosed business confidential or proprietary information related to any business of the Company or Subsidiary or (ii) have entered into an employment or consultation
arrangement (including any arrangement for employment or service as an agent, partner, stockholder, consultant, officer or director) with any entity or person engaged in a business and (A) such
employment or consultation arrangement would likely (in the Committee's sole discretion) result in the disclosure of business confidential or proprietary information related to any business of the
Company or a Subsidiary to a business that is competitive with any Company or Subsidiary business as to which you have had access to business strategic or confidential information, and (B) the
Committee has not approved the arrangement in writing, then you hereby agree and promise immediately to deliver to the Company the number of Shares (or, in the 

5

 

discretion
of the Committee, the cash value of said shares) you received for Performance Stock Units that vested during the period six (6) months prior to your Termination of Employment through
the date of Termination of Employment. 

        (d)   The
Committee shall be entitled to require that you repay all or part of any amount received (whether in cash or stock) pursuant to the terms of this Award (i) to
the extent it deems it necessary or
appropriate to comply with any future rules of the Securities and Exchange Commission, New York Stock Exchange or any other governmental agency, as they may be amended from time to time, or
(ii) to the extent otherwise deemed appropriate by the Committee to recover any overpayment or mistaken payment that was based on deficient financial information, and you hereby agree and
promise to promptly remit to the Company any such amount. 

        15.    Adjustments.    In the event of any stock split, reverse stock split, dividend or other distribution (whether
in the form of cash, Shares, other securities or other property), extraordinary cash dividend, recapitalization, merger, consolidation, split-up, spin-off, reorganization,
combination, repurchase or exchange of Shares or other securities, the issuance of warrants or other rights to purchase Shares or other securities, or other similar corporate transaction or event, the
Committee shall adjust the number and kind of Shares covered by the Performance Stock Units and other relevant provisions to the extent necessary to prevent dilution or enlargement of the benefits or
potential benefits intended to be provided by the Performance Stock Units. 

        16.    Restrictions on Payment of Shares.    Payment of Shares for your Performance Stock Units is subject to the
conditions that, to the extent required at the time of delivery, (a) the Shares underlying the Performance Stock Units will be duly listed, upon official notice of redemption, upon the NYSE,
and (b) a Registration Statement under the Securities Act of 1933 with respect to the Shares will be effective. The Company will not be required to deliver any Common Stock until all applicable
federal and state laws and regulations have been complied with and all legal matters in connection with the issuance and delivery of the Shares have been approved by counsel of the Company. 

        17.    Disposition of Securities.    By accepting the Award, you acknowledge that you have read and understand the
Company's insider trading policy, and are aware of and understand your obligations under federal securities laws in respect of trading in the Company's securities. The Company will have the right to
recover, or receive reimbursement for, any compensation or profit realized on the disposition of Shares received for Performance Stock Units to the extent that the Company has a right of recovery or
reimbursement under applicable securities laws. 

        18.    Plan Terms Govern.    The redemption of Performance Stock Units, the disposition of any Shares received for
Performance Stock Units, and the treatment of any gain on the disposition of these Shares are subject to the terms of the Plan and any rules that the Committee may prescribe. The Plan document, as may
be amended from time to time, is incorporated into this Award Agreement. Capitalized terms used in this Award Agreement have the meaning set forth in the Plan, unless otherwise stated in this Award
Agreement. In the event of any conflict between the terms of the Plan and the terms of this Award Agreement, the Plan will control. By accepting the Award, you acknowledge receipt of the Plan and the
prospectus, as in effect on the date of this Award Agreement. 

        19.    Data Privacy.    By accepting the Award, you hereby explicitly and unambiguously consent to the collection, use
and transfer, in electronic or other form, of your personal data as described in this Award Agreement and any other grant materials by and among, as applicable, your Employer, the Company and its
Subsidiaries (or former Subsidiaries as are deemed necessary) for the exclusive purpose of implementing, administering and managing your participation in the Plan. 

        You
understand that the Company and the Employer may hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of
birth, social 

6

 

insurance
number or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of all Performance Stock Units or any other entitlement to
Shares awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the exclusive purpose of implementing, administering and managing the Plan ("Data"). 

        You
understand that Data may be transferred to any third parties assisting the Company with the implementation, administration and management of the Plan. You understand that these
recipients of the Data may be located in the United States or elsewhere, and that the recipients' country (e.g., the United States) may have different data privacy laws and protections than
your country. You understand that you may request a list with the names and addresses of any potential recipients of the Data by contacting your local Human Resources Representative. You authorize the
Company and the recipients assisting the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the sole purpose of implementing, administering and managing your participation in the Plan. You understand that Data will be held only as long as is necessary to
implement, administer and manage your participation in the Plan. You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require
any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your local Human Resources Representative. You understand, however, that
refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand
that you may contact your local Human Resources Representative. 

        20.    Nature of Grant.    By accepting the Award, you acknowledge that: 

        (a)   the
Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time; 

        (b)   the
grant of the Performance Stock Units is voluntary and occasional and does not create any contractual or other right to receive future grants of Performance Stock
Units, or benefits in lieu of Performance Stock Units, even if Performance Stock Units have been granted repeatedly in the past; 

        (c)   all
decisions with respect to future Performance Stock Unit grants, if any, will be at the sole discretion of the Company; 

        (d)   your
participation in the Plan shall not create a right to further employment with the Employer and shall not interfere with the ability of the Employer to terminate
your employment relationship at any time; 

        (e)   you
are voluntarily participating in the Plan; 

        (f)    the
Performance Stock Units and the Shares subject to the Performance Stock Units are extraordinary items that do not constitute part of your ordinary ongoing
compensation; 

        (g)   the
Performance Stock Units and the Shares subject to the Performance Stock Units are not intended to replace any pension rights or compensation; 

        (h)   the
Performance Stock Units and the Shares subject to the Performance Stock Units are not part of normal or expected compensation or salary for any purposes, including,
but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare
benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company, the Employer or any Subsidiary of the Company; 

7

 

        (i)    the
Performance Stock Unit grant and your participation in the Plan will not be interpreted to form an employment contract or relationship with the Company or any
Subsidiary of the Company; 

        (j)    the
future value of the underlying Shares is unknown and cannot be predicted with certainty; 

        (k)   in
consideration of the grant of the Performance Stock Units, no claim or entitlement to compensation or damages shall arise from forfeiture of the Performance Stock
Units resulting from termination of your employment with the Company or the Employer (for any reason whatsoever and
whether or not in breach of local labor laws) and you irrevocably release the Company and the Employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by
a court of competent jurisdiction to have arisen, you shall be deemed irrevocably to have waived your entitlement to pursue such claim; 

        (l)    the
Performance Stock Units and the benefits under the Plan, if any, will not automatically transfer to another company in the case of a merger, take-over or
transfer of liability; 

        (m)  payment
of your Performance Stock Units is not secured by a trust, insurance contract or other funding medium, and you do not have any interest in any fund or specific
asset of the Company by reason of this Award or the account established on your behalf; and 

        (n)   you
have no rights as a stockholder of the Company pursuant to the Performance Stock Units until Shares are actually delivered to you. 

        21.    No Advice Regarding Grant.    The Company is not providing any tax, legal or financial advice, nor is the
Company making any recommendations regarding your participation in the Plan or your acquisition or sale of the underlying Shares. You are hereby advised to consult with your own personal tax, legal
and financial advisors regarding your participation in the Plan before taking any action related to the Plan. 

        22.    Incorporation of Other Agreements.    This Award Agreement and the Plan constitute the entire understanding
between you and the Company regarding the Performance Stock Units. This Award Agreement supersedes any prior agreements, commitments or negotiations concerning the Performance Stock Units. 

        23.    Severability.    The invalidity or unenforceability of any provision of this Award will not affect the validity
or enforceability of the other provisions of the Agreement, which will remain in full force and effect. Moreover, if any provision is found to be excessively broad in duration, scope or covered
activity, the provision will be construed so as to be enforceable to the maximum extent compatible with applicable law. 

        24.    Delayed Payment.    Notwithstanding anything in this Award Agreement to the contrary, if the Employee
(i) is subject to US Federal income tax on any part of the payment of the Performance Stock Units, (ii) is a "specified employee" within the meaning of section 409A(a)(2)(B) of
the Internal Revenue Code and the regulations thereunder, and (iii) is or will become eligible for Retirement prior to the Normal Vesting of some or all of the Performance Stock Units, then any
payment of Performance Stock Units that is made on account of his separation from service within the meaning of section 409A(a)(2)(A)(i) of the Internal Revenue Code and the regulations
thereunder shall be delayed until six months following such separation from service. 

        25.    Language.    If you have received this Award Agreement or any other document related to the Plan translated
into a language other than English and if the meaning of the translated version is different than the English version, the English version will control. 

8

 

        26.    Electronic Delivery.    The Company may, in its sole discretion, decide to deliver any documents related to
current or future participation in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an on-line
or electronic system established and maintained by the Company or a third party designated by the Company. 

        27.    Imposition of Other Requirements.    The Company reserves the right to impose other requirements on your
participation in the Plan, including but not limited to such requirements as described in Appendix A, if applicable, on the Performance Stock Units and on any Shares acquired under the Plan, to
the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require you to sign any additional agreements or
undertakings that may be necessary to accomplish the foregoing. 

By
accepting this Award, you agree to the following: 

          (i)  you
have carefully read, fully understand and agree to all of the terms and conditions described in this Award Agreement and the Plan; and 

         (ii)  you
understand and agree that this Award Agreement and the Plan constitute the entire understanding between you and the Company regarding the Award, and that any prior
agreements, commitments or negotiations concerning the Performance Stock Units are replaced and superseded. 

 

			
	 
	 	 

	
 	
 	

 
	 	 	Thomas J. Lynch

Chief Executive Officer,

TE Connectivity

 

 9

 
 
 

  APPENDIX A    
    
    PERFORMANCE METRICS APPLICABLE TO
  FISCAL YEAR 2013 PERFORMANCE STOCK UNIT AWARDS    
    

	1.
	Purpose—This document is Appendix A to the "Terms and Conditions of Performance Stock Unit
Award" document (your "PSU award agreement") which reflects the terms and conditions of your Fiscal Year 2013 performance stock unit ("PSU") award granted on November 12, 2012. The purpose of
this Appendix is to describe the terms under which you will earn PSUs granted to you under your Fiscal Year 2013 PSU award through the applicable three-year performance cycle. (Note that
the earned PSUs will not be delivered to you unless you meet the applicable vesting requirements described in your PSU award agreement.) For purposes of your Fiscal Year 2013 PSU award, the
"Performance Cycle" is the three year period beginning with the first day of fiscal year 2013 and ending on the last day of fiscal year 2015.

	2.
	Vesting—The vesting terms applicable to your Fiscal Year 2013 PSU award are described in your PSU
award agreement. This Appendix describes how many PSUs you will earn in each fiscal year of the Performance Cycle under the Company Performance Metric, which will vest and be delivered to you in the
form of Shares if you meet the applicable vesting requirements described in your PSU award agreement.

	3.
	Performance Metric—The performance metric which will be measured to determine how many PSUs you
will earn in each fiscal year of the Performance Cycle is relative earnings per share ("EPS") growth.   

	•
	The performance metric is the one-year growth rate of "adjusted EPS", which is adjusted diluted EPS from
continuing operations. Bloomberg News refers to this metric as "Diluted EPS before Abnormal Items". In determining the Company's relative performance, the Company will use the Diluted EPS before
Abnormal Items data published in Bloomberg for the companies included in the benchmark described below. 

The
Company's relative EPS performance will be calculated by ranking its annual EPS growth versus the EPS growth of all eligible S&P 500 Non-Financial companies. The calculation of
the Company's relative EPS growth performance will be conducted under written procedures adopted by the Management Development and Compensation Committee (the "MDCC") of the Board of Directors at the
time the Fiscal Year 2013 PSU awards were granted. (The approved calculation procedures will be made available to you upon written request sent to Executive Compensation, Attention Director of
Executive Compensation, 1050 Westlakes Drive, Berwyn, PA USA 19312.)  

	4.
	Determination of PSUs Earned—The number of PSUs earned in a fiscal year within the Performance
Cycle will be determined based on the number of PSUs "eligible to be earned" for that year and the Company's relative EPS growth performance for that year. For each fiscal year within the Performance
Cycle, one-third (1/3) of the number of PSUs granted under your Fiscal Year 2013 PSU award will be eligible to be earned for that fiscal year. Depending on the Company's
relative EPS growth performance for that fiscal year, you can earn from 0% to 200% of the PSUs eligible to be earned for that year, based on the following scale: 

 

							
	 
	 	Threshold 	 	Target 	 	Maximum 
	 Performance Zone (relative EPS growth % ranking)
	 	25th	 	45th to 55th	 	75th
	 PSUs Earned (% of PSUs eligible to be earned)
	 	50%	 	100%	 	200%

 

 

Performance
below the 25th percentile results in zero PSUs earned for the fiscal year. Performance between the levels identified above will be interpolated. Performance above the
75th percentile is capped at 200%. 

10

 
	5.
	Certification Date—The date on which the MDCC of the Board of Directors certifies performance
results for each fiscal year in the Performance Cycle is the Certification Date for purposes of the PSU award agreement.

	6.
	PSUs Earned and Reserved for Delivery—Once the MDCC determines the number of PSUs that you have
earned for a fiscal year within the Performance Cycle under the Company Performance Metric, that number of units will be credited to your PSU account. Any PSUs that were eligible to be earned for that
fiscal year, but were not earned as a result of the Company's relative EPS growth performance, will be forfeited.

	7.
	MDCC Discretion—All decisions regarding the interpretation of your PSU award and the calculation
of PSUs earned under your PSU award, including without limitation, any and all matters relating to the calculation of the Company's relative EPS growth performance, will be made in the sole and
absolute discretion of the MDCC. All determinations of the MDCC will be final, binding and conclusive on all parties.

	8.
	Governing Document—This Appendix A is part of and incorporated into the terms of your PSU
award agreement and should be read in context of the award agreement. 

11

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APPENDIX A PERFORMANCE METRICS APPLICABLE TO FISCAL YEAR 2013 PERFORMANCE STOCK UNIT AWARDS

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