Document:

exv10w35

EXHIBIT 10.35

				
	 	 	 	 
	 	
	 	

Plan: FY09 Executive Incentive Plan

Division: International Technidyne Corporation (ITC)

	I.	 	Objective
	 
	 	 	ITC’s Executive Incentive Plan, hereinafter referred to as EIP is intended to reward
executive employees who significantly impact and influence ITC’s productivity in proportion
to their accomplishment of specified objectives.
	 
	 	 	The purpose of the plan is to ensure maximum return to ITC by encouraging greater initiative,
resourcefulness, teamwork and efficiency on the part of senior management whose performance
and responsibilities directly affect company profits.
	 
	 	 	Awarding of the bonus will be based on company financial performance and by accomplishing a
set of annual objectives, determined by the Chief Executive Officer (“CEO”) and the Board of
Directors, typically at the beginning of the year. Bonus determinations and payouts will
take place after the financial statements have been prepared for the fiscal year.
	 
	II.	 	Determination Of The Fund
	 
	 	 	The availability of, and participants in, the fund will be set by the CEO and approved by the
Board of Directors as part of the annual budgeting process.
	 
	III.	 	Effective Date
	 
	 	 	The effective date of this program is January 4, 2009, the beginning of the plan year, and
will continue in effect until January 2, 2010, or until terminated or amended by the Board of
Directors. This plan supersedes all prior EIP plans.
	 
	IV.	 	Eligibility
	 
	 	 	Participation in the plan is limited to those in comparable levels of responsibility who have
a direct and significant influence on ITC’s growth and profitability. Employees must be
regular and not eligible for any other ITC commission, bonus or incentive plan in order to be
eligible to participate in the EIP.
	 
	 	 	Participating employees will be determined at the beginning of the fiscal year, or at such
time during the Fiscal Year that an employee achieves an eligible position. Employees will
be notified of their eligibility and plan objectives, as soon as possible after the
determination by the CEO or Board of Directors.
	 
	 	 	Individuals must be employed by ITC at the close of the fiscal year and the date of payment
in order to be eligible for an award under the EIP except participants who are involuntarily
terminated due to a divestiture, plant closing, reorganization or reduction in force during
the plan year may receive an award on the prorated basis described in Section VIII, Plan
Administration, Prorated Awards, (subject to approval by the CEO). These monies will
be paid out at the usual and customary time of payment of all bonuses. For purposes of this
plan, termination shall mean the day the employee leaves the job, which may not necessarily
be the last day on the payroll.
	 
	V.	 	Incentive Objectives
	 
	 	 	Objectives will be agreed to by the CEO with the Senior Management reporting to him and with
concurrence by the Board of Directors as necessary. Generally, there will be a minimum of
three up to a maximum of seven objectives, which will include two or more financial
objectives. Each objective will be weighted according to its importance, which weight will
determine the percentage of the bonus awarded for completion of that objective. (See Section
VI below.)
	 
	VI.	 	Bonus Opportunity and Award
	 
	 	 	The award opportunity will be expressed as a percentage of the participant’s base salary at
the close of the fiscal year. The award will be approved by the Board of Directors or the
CEO, and will be consistent with the participant’s peers within the company.
	 
	 	 	The amount that a participant actually receives for the full fiscal year will be based upon
the extent to which the set objectives have been achieved. The participant will receive a
percentage of the total award opportunity corresponding to the percentage of each objective
accomplished and the weight assigned to the objective. Evaluations of performance against
individual and financial objectives are made for the full year prior to fiscal year-end
payment.

1

 

	VII.	 	Performance Goal and Payout
	 
	 	 	In addition to your individual goals, everyone will have two company-oriented financial goals
that will be achieved according to the following guidelines:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	                  (1)
	 	 	 	 	 	 	ITC	 	ITC
	 	 	 	 	 	 	Revenue	 	Non-GAAP Income Before Tax
	 	 	 	 	 	 	Goal	 	Award	 	Goal	 	Award
	 	 	 	 	 	 	 
	Threshold
	 	= to, or >	 	$	*	 	 	 	50	%	 	$	*	 	 	 	50	%
	Target
	 	= to, or >	 	$	*	 	 	 	100	%	 	$	*	 	 	 	100	%

 

	Note: 	 	If revenue is less than $* (95% of target) no payment is earned for that objective.
If ITC NGIBT earnings is less than $* (90% of target), no payment is earned for that
objective. If actual results fall between threshold and target, interpolate between them to
get actual payout percentage. This percentage will be multiplied times the weight given the
objective in your individual plan to determine the achievement. Quarterly revenue and NGIBT
earnings income information may be released at the end of each quarter, after earnings have
been disclosed to the public.

	(1)	 	ITC NGIBT earnings is defined as GAAP net income before taxes for the ITC
Division excluding, as applicable, amortization of intangibles, in-process R&D,
impairment of intangibles, certain litigation, restructuring and CEO transition expenses
and certain other unusual or non-recurring costs, and also excluding share-based
compensation expense under SFAS No. 123R and changes in the value of the “make-whole”
provision of our convertible notes and special incentive awards.

	VIII.	 	Over-Achievement Award Opportunity/Performance Accelerator
	 
	 	 	In addition, each EIP participant will receive a 3% increase for every 1% increase in ITC
NGIBT earnings over the target level. For example, if you earned 85% of your total
objectives for the year, and the ITC Division earned $* of NGIBT earnings (a 10%
over-achievement) your award would be calculated as follows:

Annualized base salary ($50,000) x target bonus (20%) x

(30% financial and 55% individual accomplishment for 85% total) x 1.30 = $11,050

	IX.	 	Plan Administration
	 
	 	 	Prorated Awards. Individuals who are promoted to eligible positions during the plan
year, new hires into eligible positions and eligible employees who are either on
leave or on active written warning for part of the year may be awarded partial bonuses
under this program, based on the accomplished objectives and their respective weights,
subject to the approval of the CEO.
	 
	 	 	Transfers. In the event of transfer of an eligible participant to another position or
department, the transferring manager will evaluate EIP results for prorated award (see
Prorated Awards above) at the end of the year, and forward to the Human Resources Department.
The hiring manager will be responsible for setting the key business plan objectives for the
balance of the year, if applicable, and forwarding to Human Resources for approval. Awards
based on these objectives will be prorated (see Prorated Awards above) as well, for end of
the year payment.
	 
	 	 	Authority. The Board of Directors shall have the full power and authority to construe,
interpret and administer the plan. All decisions, actions or interpretations of the Board of
Directors shall be final and conclusive and binding on all parties. This program shall be
administered by the Human Resources Department.
	 
	X.	 	General Provisions

	 	•	 	The Executive Incentive Plan for 2009 may be reviewed and revised at the Board’s
discretion.
	 
	 	•	 	Nothing in this plan shall be construed to limit in any way the right of
International Technidyne Corporation to terminate an employee’s employment at any time,
with or without cause or notice, nor shall it be evidence of any agreement or
understanding, expressed or implied, that Thoratec or any of its subsidiaries will
employ an employee in any particular position, for any particular period of time, ensure
participation in any incentive programs, or the granting of awards from such programs as
they may from time to time exist or be constituted. ITC reserves the right to
discontinue or alter the plan at its sole discretion at any time with or without notice.

 

			
	*	 	Amounts to be determined by the Compensation and Option Committee
of the Board of Directors.

2exv4w4

EXHIBIT 4.4 AND 10.7

AMENDMENT NO. 1 TO CREDIT AGREEMENT

This Amendment No. 1 to Credit Agreement (“Amendment”) is dated April 28, 2009,
effective as of March 31, 2009 (“Effective Date”) between Tandy Brands Accessories, Inc., a
Delaware corporation (“Borrower”) and Comerica Bank, a Texas banking association (“Bank”).

Borrower and Bank entered into a Credit Agreement dated as of February 12, 2008 (“Credit
Agreement”) providing terms and conditions governing certain loans and other credit accommodations
extended by Bank to Borrower (“Indebtedness”). Borrower and Bank have agreed to amend the terms of
the Credit Agreement as provided in this Amendment.

Accordingly, Borrower and Bank agree as follows:

1. Capitalized Terms. In this Amendment, capitalized terms that are used without separate
definition shall have the meanings given to them in the Credit Agreement.

2. Amendments. The Credit Agreement is amended as follows:

(a) The following term, which is defined in the Defined Terms Addendum attached to the
Credit Agreement, is given the following amended definition:

“Revolving Credit Commitment” shall mean TWENTY SEVEN MILLION FIVE HUNDRED THOUSAND
DOLLARS ($27,500,000).

(b) Section 1.8 of the Loan Terms, Conditions and Procedures Addendum attached to the Credit
Agreement is amended to read in its entirety as follows:

     “1.8 Unused Commitment Fee. Borrower shall pay to Bank an unused
commitment fee in an amount equal to the product of (a) 0.50% multiplied by (b) the
difference between (i) the Revolving Credit Commitment and (ii) the aggregate
outstanding principal balance of all Revolving Loans. Such fee shall be computed on
a daily basis and shall be payable quarterly in arrears as of the end of each of
Borrower’s fiscal quarters. Bank shall invoice Borrower for such fees, which
invoice shall be due and payable within fifteen (15) days after receipt.”

(c) Section 4.3(g) of the Credit Agreement is amended to read in its entirety as follows:

     “(g) within thirty (30) days after and as of the end of each calendar month, a
Compliance Certificate dated as of the end of such month;”

(d) The following subsection (k) is hereby added to Section 5.4 of the Credit Agreement
immediately following existing subsection (j):

     “(k) Borrower’s obligations with respect to “Earn-Out Payments” under the
Asset Purchase Agreement dated as of April 23, 2009 between Borrower and Chambers
Belt Company.”

(e) Section 1.1 of the Financial Covenants Addendum attached to the Credit Agreement is
amended to read in its entirety as follows:

 

 

     “1.1 Tangible Net Worth. Maintain a Tangible Net Worth as of the end
of each of Borrower’s fiscal quarters, to be tested as of the end of each such
fiscal quarter, not less the amount set forth below during the corresponding period
set forth below:

	 	(a)	 	Thirty Three Million Five Hundred
Thousand Dollars ($33,500,000) as of March 31, 2009;
	 
	 	(b)	 	as of the end of each fiscal
quarter thereafter, the sum of:

	 	(i)	 	the amount of Tangible Net Worth that was required to be
maintained as of the end of the immediately preceding fiscal
quarter, plus
	 
	 	(ii)	 	fifty percent (50%) of the Net Income (if positive), for
the fiscal quarter ended as of the date of determination,
plus one hundred percent of the Fixed Asset Gain/Loss (if
positive), for the fiscal quarter ended as of the date of
determination; plus
	 
	 	(iii)	 	one hundred percent (100%) of the Net Cash Proceeds
from the issuance of any equity ownership interests during
the fiscal quarter ended as of the date of determination.”

3. Representations. Borrower represents and agrees that:

(a) Except as expressly modified in this Amendment, (i) the representations and warranties
set forth in the Credit Agreement and in each related document, agreement, and instrument
remain true and correct in all respects, except to the extent that they expressly speak as
of a specific prior date, and (ii) the covenants set forth in the Credit Agreement continue
to be satisfied in all respects, and are legal, valid and binding obligations with the same
force and effect as if entirely restated in this Amendment.

(b) When executed, this Amendment will be a duly authorized, legal, valid, and binding
obligation of Borrower enforceable in accordance with its terms.

(c) the Certificate of Incorporation, Bylaws and resolutions of Borrower certified by the
Assistant Secretary of Borrower and delivered to Bank on or about February 12, 2008, remain
in full force and effect, have not been amended, repealed or rescinded in any respect and
may continue to be relied upon by Bank until written notice to the contrary is received by
Bank, and Borrower continues to be in good standing under the laws of the State of Delaware.

(d) There is no default continuing under the Credit Agreement, or any related document,
agreement, or instrument, and no event has occurred or condition exists that is or, with the
giving of notice or lapse of time or both, would be such a default.

     4. Conditions Precedent. The effectiveness of this Amendment is subject to Bank’s receipt
of all of the following:

(a) this Amendment and such other agreements and instruments reasonably requested by Bank
pursuant hereto (including such documents as are necessary to create and perfect Bank’s
interest in the Collateral), each duly executed by Borrower;

-2-

 

(b) payment to Bank of an amendment fee in the amount of $100,000; and

(c) such other documents and completion of such other matters as Bank may reasonably deem
necessary or appropriate, including those items set forth on the Documentation Checklist
attached hereto as Exhibit “A”; provided however, solely as to item 18 on Exhibit “A”
(Warehouse Agreement), Borrower shall only be required to use commercially reasonable
efforts to obtain the signature of UPS Supply Chain Solutions, Inc. (“UPS”), and Borrower’s
inability to obtain such signature will not cause this Amendment to be ineffective.

5. Acknowledgment of Change in Chief Executive Officer: The Borrower has informed Bank
that, effective October 1, 2008, J.S.B. Jenkins was replaced by N. Roderick McGreachy, III as chief
executive officer of Borrower. The Bank acknowledges that the replacement of J.S.B. Jenkins as
chief executive officer of the Borrower does not constitute an Event of Default under Section
6.1(g)(i) of the Credit Agreement.

6. No Other Changes. Except as specifically provided in this Amendment, this Amendment
does not vary the terms and provisions of any note, mortgage, security agreement, or other
document, instrument, or agreement evidencing, securing or relating to the Indebtedness or the
Credit Agreement (“Loan Documents”). This Amendment shall not impair the rights, remedies, and
security given in and by the Loan Documents. The terms of this Amendment shall control any
conflict between its terms and those of the Credit Agreement.

7. Ratification. Except for the modifications under this Amendment, the parties ratify and
confirm the Credit Agreement and the Loan Documents and agree that they remain in full force and
effect.

8. Further Modification; No Reliance. This Amendment may be altered or modified only by
written instrument duly executed by Borrower and Bank. In executing this Amendment, Borrower is
not relying on any promise or commitment of Bank that is not in writing signed by Bank. This
Amendment shall not be more strictly construed against one of the parties as compared to the other.

9. Confirmation of Lien Upon Collateral. Borrower acknowledges and agrees that
Indebtedness and the individual advances under the Indebtedness are secured by the Collateral (as
defined in the Credit Agreement) and that the Loan Documents constitute valid, legal, and binding
agreements and obligations of Borrower. The Collateral is and shall remain subject to and
encumbered by the lien, charge, and encumbrance of any applicable Loan Document, and nothing herein
contained shall affect or be construed to affect the lien or encumbrance created by any applicable
Loan Document respecting the Collateral, or its priority over other liens or encumbrances.

10. Successors and Assigns. This Amendment shall inure to the benefit of and be binding
upon the parties and their respective successors and assigns.

11. Governing Law. The parties agree that the terms and provisions of this Amendment shall
be governed by and construed in accordance with the internal laws of the State of Michigan, without
regard to principles of conflicts of law.

12. No Defenses. Borrower acknowledges, confirms, and warrants to Bank that as of the date
hereof Borrower has absolutely no defenses, claims, rights of set-off, or counterclaims against
Bank under, arising out of, or in connection with, this Amendment, the Credit Agreement, the Loan
Documents and/or the individual advances under the Indebtedness, or against any of the indebtedness
evidenced or secured thereby.

-3-

 

13. Expenses. Borrower upon request shall promptly pay all out-of-pocket fees, costs,
charges, expenses, and disbursements of Bank, including, without limitation, reasonable attorneys’
fees and legal expenses, incurred in connection with the preparation, execution, and delivery of
this Amendment, and the other documents contemplated by this Amendment.

14. Counterparts. This Amendment may be executed in one or more counterparts, and by
separate parties on separate counterparts, all of which shall constitute one and the same
agreement.

[end of amendment — signature page follows]

-4-

 

     This Amendment No. 1 to Credit Agreement is executed and delivered as of the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 
	Comerica Bank	 	 	 	TANDY BRANDS ACCESSORIES, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven Colwick
	 	 	 	By:
	 	/s/ Craig Mackey	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name: Steven Colwick
	 	 	 	 	 	Name: Craig Mackey	 	 
	 

	 	Title: Vice President — Texas Division
	 	 	 	 	 	Title: Chief Financial Officer	 	 

Acknowledgement and Consent of Guarantors

     Each of the undersigned has guaranteed the payment and performance of the Indebtedness by
Borrower pursuant to a Guaranty dated as of February 12, 2008 (“Guaranty”). Each of the
undersigned acknowledges and consents to the execution, delivery and performance of the foregoing
Amendment No. 1 to Credit Agreement and the $27,500,000 Master Revolving Note dated as of [March
31, 2009] from Borrower to Bank, and agrees that its guaranty remains in full force and effect.
Each of the undersigned further represents that (a) it is in compliance with all of the terms and
conditions of its Guaranty; and (b) the organizational documents and resolutions of each of the
undersigned certified by an authorized officer of the undersigned and delivered to Bank on or about
February 12, 2008, remain in full force and effect, have not been amended, repealed or rescinded in
any respect and may continue to be relied upon by Bank until written notice to the contrary is
received by Bank, and each of the undersigned continues to be in good standing under the laws of
the state of its incorporation or formation.

	 	 	 	 	 	 	 	 	 
	ACCESSORY DESIGN GROUP, INC.
	 	 	 	TBAC MANAGEMENT COMPANY L.P.	 	 
	TBAC — PRINCE GARDNER, INC.
	 	 	 	 	 	 	 	 
	AMITY/ROLFS, INC.
	 	 	 	By:	 	TBAC General Management Company	 	 
	TBAC GENERAL MANAGEMENT COMPANY
	 	 	 	Its:	 	General Partner	 	 
	TBAC INVESTMENTS, INC.
	 	 	 	 	 	 	 	 
	TBAC INVESTMENT TRUST
	 	 	 	By:	 	/s/ Craig Mackey	 	 
	 	 	 	 	 	 	 	 	 
	TANDY BRANDS ACCESSORIES HANDBAGS, INC.
	 	 	 	 	 	Craig Mackey	 	 
	STAGG INDUSTRIES, INC.
	 	 	 	Its:	 	Vice President	 	 
	TBAC — TOREL, INC.
	 	 	 	 	 	 	 	 
	TBAC — ACQUISITION, INC.
	 	 	 	 	 	 	 	 
	SUPERIOR MERCHANDISE COMPANY
	 	 	 	 	 	 	 	 
	TBAC MASS MERCHANT QUALITY CONTROL, INC.
	 	 	 	 	 	 	 	 

	 	 	 	 	 
	 	 	 
	By:  	
/s/ Craig Mackey
 	 	 
	 	Craig Mackey, as Vice President of each of the above                                                                                                                     	 	 

-5-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]