Document:

Exhibit

Exhibit 10.1

FOURTH AMENDMENT TO CREDIT AGREEMENT

THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of December 16, 2019, is by and among CREE, INC., a North Carolina corporation (the “Borrower”), the Lenders (as defined below) party hereto and WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent on behalf of the Lenders under the Credit Agreement (as hereinafter defined) (in such capacity, the “Administrative Agent”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement.

W I T N E S S E T H

WHEREAS, the Borrower, certain Material Domestic Subsidiaries of the Borrower as may be from time to time party thereto (the “Guarantors”), certain banks and financial institutions from time to time party thereto (the “Lenders”) and the Administrative Agent are parties to that certain Credit Agreement dated as of January 9, 2015, as amended by the First Amendment to Credit Agreement, dated September 10, 2015, the Consent, dated July 13, 2016, the Second Amendment to Credit Agreement dated as of November 13, 2017, the Third Amendment to Credit Agreement dated as of August 21, 2018, and the Consent, dated March 14, 2019 (as amended, modified, extended, restated, replaced, or supplemented from time to time, the “Credit Agreement”);

WHEREAS, the Credit Parties have requested that the Required Lenders amend certain provisions of the Credit Agreement; and

WHEREAS, the Required Lenders are willing to make such amendments to the Credit Agreement, in accordance with and subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I
AMENDMENTS TO CREDIT AGREEMENT

1.1    New Definitions.  The following definitions are hereby added to Section 1.1 of the Credit Agreement in the appropriate alphabetical order:

“Benchmark Replacement” means the sum of: (a) the alternate benchmark rate (which may include Term SOFR) that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement to the Eurocurrency Rate and/or Daily LIBOR Rate for U.S. dollar-denominated syndicated credit facilities and (b) the Benchmark Replacement Adjustment; provided that, if the Benchmark Replacement as so determined would be less than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this Agreement.

“Benchmark Replacement Adjustment” means, with respect to any replacement of the Eurocurrency Rate and/or Daily LIBOR Rate with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (a) any selection or 

recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the Eurocurrency Rate and/or Daily LIBOR Rate with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the Eurocurrency Rate and/or Daily LIBOR Rate with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities at such time. 
“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest and other administrative matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement). 
“Benchmark Replacement Date” means the earlier to occur of the following events with respect to the Eurocurrency Rate and/or Daily LIBOR Rate: 
(a)in the case of clause (a) or (b) of the definition of “Benchmark Transition Event,” the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of the Eurocurrency Rate and/or Daily LIBOR Rate permanently or indefinitely ceases to provide the Eurocurrency Rate and/or Daily LIBOR Rate; and 

(b)in the case of clause (c) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein. 

“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the Eurocurrency Rate and/or Daily LIBOR Rate: 
(a)a public statement or publication of information by or on behalf of the administrator of the Eurocurrency Rate and/or Daily LIBOR Rate announcing that such administrator has ceased or will cease to provide the Eurocurrency Rate and/or Daily LIBOR Rate, permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Eurocurrency Rate and/or Daily LIBOR Rate; 

(b)a public statement or publication of information by the regulatory supervisor for the administrator of the Eurocurrency Rate and/or Daily LIBOR Rate, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the administrator for the Eurocurrency Rate and/or Daily LIBOR Rate, a resolution authority with jurisdiction over the administrator for the Eurocurrency Rate and/or Daily LIBOR Rate or a court or an entity with similar insolvency or resolution authority over the administrator for the Eurocurrency Rate and/or Daily LIBOR Rate, which states that the administrator of the Eurocurrency Rate and/or Daily LIBOR Rate has ceased or will cease to provide LIBOR permanently or indefinitely; provided that, at the time of such statement 

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or publication, there is no successor administrator that will continue to provide the Eurocurrency Rate and/or Daily LIBOR Rate; or 

(c)a public statement or publication of information by the regulatory supervisor for the administrator of the Eurocurrency Rate and/or Daily LIBOR Rate announcing that the Eurocurrency Rate and/or Daily LIBOR Rate is no longer representative. 

“Benchmark Transition Start Date” means (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by the Administrative Agent or the Required Lenders, as applicable, by notice to the Borrower, the Administrative Agent (in the case of such notice by the Required Lenders) and the Lenders. 
“Benchmark Unavailability Period” means, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the Eurocurrency Rate and/or Daily LIBOR Rate and solely to the extent that the Eurocurrency Rate and/or Daily LIBOR Rate has not been replaced with a Benchmark Replacement, the period (a) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the Eurocurrency Rate and/or Daily LIBOR Rate for all purposes hereunder in accordance with Section 3.7(b) and (b) ending at the time that a Benchmark Replacement has replaced the Eurocurrency Rate and/or Daily LIBOR Rate for all purposes hereunder pursuant to Section 3.7(b).

“Consolidated Total Net Debt” means, as of any date, (a) all Consolidated Total Debt minus (b) the sum of the following assets of the Credit Parties, up to an aggregate amount not to exceed $500,000,000, to the extent such assets are Unencumbered Assets held in the United States: (i) cash, (ii) Cash Equivalents and (iii) Marketable Securities.

“Consolidated Total Net Leverage Ratio” means, as of the end of any fiscal quarter of the Borrower, the ratio of Consolidated Total Net Debt on such date to Consolidated EBITDA for the period of four consecutive fiscal quarters ending on such date.

“Early Opt-in Election” means the occurrence of: 

(a)    (i) a determination by the Administrative Agent or (ii) a notification by the Required Lenders to the Administrative Agent (with a copy to the Borrower) that the Required Lenders have determined that U.S. dollar-denominated syndicated credit facilities being executed at such time, or that include language similar to that contained in Section 3.7(b) are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace the Eurocurrency Rate and/or Daily LIBOR Rate, and 

(b)    (i) the election by the Administrative Agent or (ii) the election by the Required Lenders to declare that an Early Opt-in Election has occurred and the provision, as applicable, by the Administrative Agent of written notice of such election to the 

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Borrower and the Lenders or by the Required Lenders of written notice of such election to the Administrative Agent.

“Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

“SOFR” with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York’s Website.

“Term SOFR” means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.

“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

1.2    Amendment to Definition of Daily LIBOR Rate.  The definition of Daily LIBOR Rate set forth in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Daily LIBOR Rate” means, subject to the implementation of a Benchmark Replacement in accordance with Section 3.7(b), for each day with respect to any Swingline Loan issued pursuant to Section 2.2(a)(ii), the rate per annum (rounded upwards, if necessary, to the nearest 1/100th of 1%) as published by the ICE Benchmark Administration Limited, a United Kingdom company, or a comparable or successor quoting service approved by the Administrative Agent as the London interbank offered rate for deposits in Dollars at approximately 11:00 A.M. (London time) on such day and having an advance date of such day and an interest period of one month; provided, however, if more than one rate is published by the ICE Benchmark Administration Limited, the applicable rate shall be the arithmetic mean of all such rates. If, for any reason, such rate is not available, the term “Daily LIBOR Rate” shall mean, for each day with respect to any Daily LIBOR Swingline Loan, the rate per annum at which, as determined by the Administrative Agent in accordance with its customary practices, Dollars in an amount comparable to the Loans then requested are being offered to leading banks at approximately 11:00 A.M. (London time) on such day and having an advance date of such day and a maturity date of one month for settlement in immediately available funds by leading banks in the London interbank market. Notwithstanding anything to the contrary herein, in no event shall the Daily LIBOR Rate be less than 0%.

1.3    Amendment to Definition of Eurocurrency Rate.  The definition of Eurocurrency Rate set forth in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Eurocurrency Rate” means, subject to the implementation of a Benchmark Replacement in accordance with Section 3.7(b), (a) for any Interest Period with respect to a Eurocurrency Rate Loan, the rate of interest per annum determined on the basis of the rate for deposits in Dollars for a period equal to the applicable Interest Period as published by the ICE Benchmark Administration Limited, a United Kingdom company, or a comparable or successor quoting service approved by the Administrative Agent, at approximately 11:00 a.m. (London time) two (2) London Banking Days prior to the first day of the applicable Interest Period. If, for any reason, such rate is not published by the ICE Benchmark Administration Limited (or any applicable successor page), then the “Eurocurrency Rate” shall be determined by the Administrative Agent to be the arithmetic average 

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of the rate per annum at which deposits in Dollars would be offered by first class banks in the London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) two (2) London Banking Days prior to the first day of the applicable Interest Period for a period equal to such Interest Period and (b) for any interest rate calculation with respect to a Base Rate Loan, the rate of interest per annum determined on the basis of the rate for deposits in Dollars for an interest period equal to one month (commencing on the date of determination of such interest rate) as published by the ICE Benchmark Administration Limited, a United Kingdom company, or a comparable or successor quoting service approved by the Administrative Agent, at approximately 11:00 a.m. (London time) on such date of determination, or, if such date is not a Business Day, then the immediately preceding Business Day. If, for any reason, such rate is not published by the ICE Benchmark Administration Limited (or any applicable successor page) then the “Eurocurrency Rate” for such Base Rate Loan shall be determined by the Administrative Agent to be the arithmetic average of the rate per annum at which deposits in Dollars would be offered by first class banks in the London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) on such date of determination for a period equal to one month commencing on such date of determination. Notwithstanding anything to the contrary herein, in no event shall the Eurocurrency Rate be less than 0%.

1.4    Amendment to Definition of Permitted Acquisition.  Subclause (x) appearing in clause (ii) of the definition of Permitted Acquisition set forth in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(x) the Consolidated Total Net Leverage Ratio is less than or equal to 4.25 to 1.00 and

1.5    Amendment to Definition of Pro Forma Basis.  The first sentence of the definition of Pro Forma Basis set forth in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Pro Forma Basis” means, for purposes of calculating (utilizing the principles set forth in Section 1.3) the applicable Pricing Level under the definition of “Applicable Percentage” and the Consolidated Total Leverage Ratio, and for purposes of determining compliance with each of the financial covenants set forth in Section 7.10, that any transaction shall be deemed to have occurred as of the first day of the four fiscal-quarter period ending as of the most recent fiscal quarter end preceding the date of such transaction with respect to which the Administrative Agent has received the annual or quarterly compliance certificate and related financial statements required by Section 7.1(a) or (b), as appropriate.

1.6    Amendment to Definition of Pro Forma Compliance Certificate.  The definition of Pro Forma Compliance Certificate set forth in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Pro Forma Compliance Certificate” means a certificate of the chief financial officer (or its equivalent) of the Borrower delivered to the Administrative Agent in connection with (i) any Incremental Loan pursuant to Section 2.10, (ii) any Permitted Acquisition, (iii) any Indebtedness permitted to be incurred pursuant to Sections 8.1(j) and (k) and (iv) any Restricted Payment referenced in Section 8.12, as applicable, and containing reasonably detailed calculations, upon giving effect to the applicable transaction on a Pro Forma Basis, of the Consolidated Interest Coverage Ratio, the Consolidated Total Leverage Ratio (in the case of transactions described by clauses (i), (iii) and (iv), above) and the Consolidated Total Net Leverage Ratio (in the case of transactions described by clause (ii), above) each as of the most recent fiscal quarter end preceding the date of the applicable transaction with respect to which the Administrative Agent shall have 

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received the annual or quarterly compliance certificate and related financial statements required by Section 7.1(a) or (b), as appropriate.

1.7    Amendment to Definition of Swingline Committed Amount.  The reference to “$75,000,000” appearing in clause (a) of the definition of “Swingline Committed Amount” set forth in Section 1.1 of the Credit Agreement is hereby amended to read “$30,000,000”.

1.8    New Section 1.5.  A new Section 1.5 is hereby added to the Credit Agreement to read as follows:

1.5    Divisions.  For all purposes under the Credit Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Capital Stock at such time.

1.9    Amendments to Section 2.1(a).  The reference to “FIVE HUNDRED MILLION DOLLARS ($500,000,000)” contained in clause (i) of the proviso appearing in Section 2.1(a) of the Credit Agreement is hereby amended to read “TWO HUNDRED FIFTY MILLION DOLLARS ($250,000,000)”.

1.10    Amendments to Section 2.1(c).  The reference to “TEN MILLION DOLLARS ($10,000,000)” contained in clause (i) of the proviso appearing in Section 2.1(a) of the Credit Agreement is hereby amended to read “FIVE MILLION DOLLARS ($5,000,000)”.

1.11    Amendment to Section 2.10.  Subclause (B) appearing in the proviso contained in Section 2.10(a) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(B)    the Administrative Agent and the Lenders shall have received from the Borrower a Pro Forma Compliance Certificate demonstrating, in form and substance reasonably satisfactory to the Administrative Agent, that (1) the Consolidated Total Leverage Ratio is less than or equal to 4.50 to 1.00 and (2) the Borrower is in compliance with the financial covenants set forth in Section 7.10 based on the financial statements most recently delivered pursuant to Section 7.1(a) or 7.1(b), as applicable, both before and after giving effect (on a pro forma basis) to (x) any Incremental Loan Commitment, (y) the making of any Incremental Loans pursuant thereto (with any Incremental Loan Commitment being deemed to be fully funded) and (z) any Permitted Acquisition consummated in connection therewith; 

1.12    Amendment to Section 3.7.  Section 3.7 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

3.7  Limitation on Eurocurrency Rate Loans.

(a)  Circumstances Affecting Availability.  Unless and until a Benchmark Replacement is implemented in accordance with clause (b) below, if on or prior to the first day of any Interest Period for any Eurocurrency Rate Loan:

(i)the Administrative Agent determines (which determination shall be conclusive absent manifest error) that by reason of circumstances affecting the relevant 

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market arising after the Closing Date, adequate and reasonable means do not exist for ascertaining the Eurocurrency Rate for such Interest Period; or

(ii)the Required Lenders determine (which determination shall be conclusive absent manifest error) and notify the Administrative Agent that the Eurocurrency Rate will not adequately and fairly reflect the cost to the Lenders of funding Eurocurrency Rate Loans for such Interest Period (other than any such determination based on Taxes); 

then the Administrative Agent shall give the Borrower prompt notice thereof, and so long as such condition remains in effect, the Lenders shall be under no obligation to make additional Eurocurrency Rate Loans, continue Eurocurrency Rate Loans, or to convert Base Rate Loans into Eurocurrency Rate Loans.

		
	(b)
	Effect of Benchmark Transition Event.  

(i)Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Credit Document, upon the occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, the Administrative Agent and the Borrower may amend this Agreement to replace the Eurocurrency Rate and/or Daily LIBOR Rate with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders. Any such amendment with respect to an Early Opt-in Election will become effective on the date that Lenders comprising the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders accept such amendment. No replacement of the Eurocurrency Rate and/or Daily LIBOR Rate with a Benchmark Replacement pursuant to this Section 3.7(b) will occur prior to the applicable Benchmark Transition Start Date. 

(ii)Benchmark Replacement Conforming Changes. In connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Credit Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement. 

(iii)Notices; Standards for Decisions and Determinations. The Administrative Agent will promptly notify the Borrower and the Lenders of (A) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (B) the implementation of any Benchmark Replacement, (C) the effectiveness of any Benchmark Replacement Conforming Changes and (D) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or Lenders pursuant to this Section 3.7(b), including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 3.7(b). 

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(iv)Benchmark Unavailability Period. Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for a Eurocurrency Rate Loan or Daily LIBOR Swingline Loan, or conversion to or continuation of a Eurocurrency Rate Loan, during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a borrowing of or conversion to Base Rate Loans. During any Benchmark Unavailability Period, the component of the Base Rate based upon the Eurocurrency Rate will not be used in any determination of the Base Rate.

1.13    Amendment to Section 7.10.  Clause (a) set forth in Section 7.10 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(a)    Consolidated Total Net Leverage Ratio. As of the end of each fiscal quarter of the Borrower, the Consolidated Total Net Leverage Ratio shall be less than or equal to 4.50:1.0. 

1.14    Amendment to Section 8.1.  The second subclause (ii) contained in Section 8.1(k) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(ii)    the Borrower has delivered a Pro Forma Compliance Certificate to the Administrative Agent demonstrating, in form and substance reasonably satisfactory to the Administrative Agent, that (A) the Consolidated Total Leverage Ratio is less than or equal to 4.50 to 1.00 and (B) the Credit Parties are in compliance with the financial covenants set forth in Section 7.10 

1.15    Amendments to Section 8.12.  The language “the Borrower is in compliance with the financial covenants set forth in Section 7.10 after giving effect to such Restricted Payment on a pro forma basis as if such Restricted Payment were made on the first day of the last applicable measurement period described in Section 7.10” appearing in subclause (y) of clauses (b), (e), (f) and (g) contained in Section 8.12 of the Credit Agreement is hereby amended to read (i) with respect to Section 8.12(b), “the Consolidated Total Leverage Ratio is less than or equal to 4.25 to 1.00, and the Borrower is in compliance with the financial covenants set forth in Section 7.10 after giving effect to such Restricted Payment on a pro forma basis as if such Restricted Payment were made on the first day of the last applicable measurement period described in Section 7.10” and (ii) with respect to Sections 8.12(e), (f) and (g), “the Consolidated Total Leverage Ratio is less than or equal to 4.50 to 1.00, and the Borrower is in compliance with the financial covenants set forth in Section 7.10 after giving effect to such Restricted Payment on a pro forma basis as if such Restricted Payment were made on the first day of the last applicable measurement period described in Section 7.10”.

1.16    New Section 11.20.  A new Section 11.20 is hereby added to the Credit Agreement to read as follows:

11.20 Acknowledgement Regarding any Supported QFCs.  To the extent that the Credit Documents provide support, through a guarantee or otherwise, for Swap Agreements or any other agreement or instrument that is a QFC (such support, “QFC Credit Support”, and each such QFC, a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Credit Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

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(a)     In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Credit Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Credit Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.
(b)    As used in this Section 11.20, the following terms have the following meanings: 

“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.
“Covered Entity” means any of the following: (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

1.17    Amendment to Schedule 2.1.  From and after the Effective Date (as defined below), Schedule 2.1 attached as Exhibit A to this Amendment shall replace the existing Schedule 2.1 to the Credit Agreement.  No other Schedules or Exhibits to the Credit Agreement shall be modified or otherwise affected.

1.18    Commitments.  Subject to the terms and conditions hereof and in reliance upon the representations and warranties set forth herein, the Aggregate Revolving Committed Amount (as in effect prior to the date hereof) shall be reduced by an aggregate principal amount equal to $250,000,000. Each of the parties hereto agrees that, after giving effect to this Amendment, the revised Revolving Commitment and Revolving Commitment Percentage of each Lender (as of the Effective Date) shall be as set forth on Exhibit A attached hereto. In connection with this Amendment, the outstanding Revolving Loans and participation interests in existing Swingline Loans and Letters of Credit shall be reallocated by causing such fundings and repayments (which shall not be subject to any processing and/or recordation fees) among the 

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Lenders of the Revolving Loans as necessary such that, after giving effect to reduction of the Aggregate Revolving Committed Amount as contemplated by this Amendment, each Lender will hold Loans based on its Revolving Commitment (after giving effect to such reduction). The Borrower shall be responsible for any costs arising under Section 3.12 of the Credit Agreement resulting from such reallocation and repayments.  The Administrative Agent and the Required Lenders hereby waive any notice requirements set forth in Section 3.3 of the Credit Agreement in connection with the reduction of the Aggregate Revolving Committed Amount as set forth herein.  If, after giving effect to this Amendment, (a) the aggregate principal amount of Revolving Obligations shall exceed the Aggregate Revolving Committed Amount, (b) the aggregate principal amount of Swingline Loans shall exceed the Swingline Committed Amount or (c) the aggregate principal amount of LOC Obligations shall exceed the LOC Committed Amount, then the Borrower shall immediately make payment on the Loans and/or to a cash collateral account in respect of LOC Obligations in an amount necessary to eliminate such excess in accordance with Section 3.4(b) of the Credit Agreement.

ARTICLE II
CONDITIONS TO EFFECTIVENESS

2.1    Closing Conditions.  This Amendment shall become effective as of the day and year set forth above (the “Effective Date”) upon satisfaction (or waiver) of the following conditions (in each case, in form and substance reasonably acceptable to the Administrative Agent):

(a)    Executed Amendment.  The Administrative Agent shall have received a copy of this Amendment duly executed by each of the Credit Parties, the Required Lenders and the Administrative Agent.

(b)    No Default.  No Default or Event of Default exists as of the Effective Date and after giving effect to the transactions contemplated hereby.

(c)    Representations and Warranties.  The representations and warranties contained in Section 6 of the Credit Agreement and the other Credit Documents are true and correct in all material respects on and as of the Effective Date, except to the extent any such representation and warranty is qualified by materiality or reference to Material Adverse Effect, in which case, such representation and warranty shall be true and correct in all respects, on the Effective Date with the same effect as if made on and as of such date (except for any such representation and warranty that by its terms is made only as of an earlier date, which representation and warranty shall remain true and correct as of such earlier date).

(d)    Fees and Expenses.  

(i)    The Administrative Agent shall have received from the Borrower, for the account of each Lender that executes and delivers a signature page to the Administrative Agent at or before 5 p.m. (New York City time) on December 12, 2019 (each such Lender, a “Consenting Lender”, and collectively, the “Consenting Lenders”), an amendment fee in an amount equal to five (5) basis points of the aggregate Commitments of all such Consenting Lenders by 5 p.m. (New York City time) on such date. Such fee shall be deemed fully earned by the Consenting Lenders upon the execution and delivery of this Amendment by the Borrower and the Consenting Lenders, and shall be paid to each Consenting Lender in accordance with its Revolving Commitment Percentage.

(ii)    The Administrative Agent shall have received from the Borrower such fees and expenses that are payable in connection with this Amendment and King & 

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Spalding LLP shall have received from the Borrower payment of all outstanding fees and expenses previously incurred and all fees and expenses incurred in connection with this Amendment.

ARTICLE III
MISCELLANEOUS

3.1    Amended Terms.  On and after the Effective Date, all references to the Credit Agreement in each of the Credit Documents shall hereafter mean the Credit Agreement as amended by this Amendment.  Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and shall remain in full force and effect according to its terms.

3.2    Representations and Warranties of Credit Parties.  Each of the Credit Parties represents and warrants as follows:

(a)    It has taken all necessary corporate and other organizational action to authorize the execution, delivery and performance of this Amendment.

(b)    This Amendment has been duly executed and delivered by such Person and constitutes such Person’s legal, valid and binding obligation, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).

(c)    No consent, approval, authorization, or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Person of this Amendment.

(d)    The representations and warranties set forth in Section 6 of the Credit Agreement and in the other Credit Documents are true and correct in all material respects, except to the extent any such representation and warranty is qualified by materiality or reference to Material Adverse Effect, in which case, such representation and warranty shall be true and correct in all respects, on and as of the date hereof (except for any such representation and warranty that by its terms is made only as of an earlier date, which representation and warranty shall remain true and correct as of such earlier date).

(e)    After giving effect to this Amendment, no event has occurred and is continuing which constitutes a Default or an Event of Default.

3.3    Reaffirmation of Obligations.  Each Credit Party hereby ratifies the Credit Agreement as amended by this Amendment and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Agreement as so amended applicable to it and (b) that it is responsible for the observance and full performance of its respective Obligations.

3.4    Credit Document.  This Amendment shall constitute a Credit Document under the terms of the Credit Agreement.

3.5    Further Assurances.  The Credit Parties agree to promptly take such action, upon the request of the Administrative Agent, as is necessary to carry out the intent of this Amendment.

11

3.6    Entirety.  This Amendment and the other Credit Documents embody the entire agreement among the parties hereto relating to the subject matter hereof and thereof and supersede all previous documents, agreements and understandings, oral or written, relating to the subject matter hereof and thereof.

3.7    Counterparts; Telecopy.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which when so executed and delivered will constitute an original, 
but all of which when taken together will constitute a single contract.  Delivery of an executed counterpart to this Amendment by telecopy or other electronic means shall be effective as an original and shall constitute a representation that an original will be delivered.

3.8    No Actions, Claims, Etc.  As of the date hereof, each of the Credit Parties hereby acknowledges and confirms that it has no knowledge of any actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, against the Administrative Agent, the Lenders, or the Administrative Agent’s or the Lenders’ respective officers, employees, representatives, agents, counsel or directors arising from any action by such Persons, or failure of such Persons to act under the Credit Agreement on or prior to the date hereof.

3.9    GOVERNING LAW.  THIS AMENDMENT WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW OTHER THAN NEW YORK GENERAL OBLIGATIONS LAW 5-1401 AND 5-1402.

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

3.11    Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction, service of process and waiver of jury trial provisions set forth in Section 11.10 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

12

CREE, INC.
FOURTH AMENDMENT

IN WITNESS WHEREOF the parties hereto have caused this Amendment to be duly executed on the date first above written.
            
	
			
	BORROWER:
	CREE, INC.,

	 
	a North Carolina corporation

	 
	 
	 

	 
	By:
	/s/ Neill P. Reynolds          

	 
	Name:
	Neill P. Reynolds

	 
	Title:
	Executive Vice President and

	 
	 
	Chief Financial Officer

    

CREE, INC.
FOURTH AMENDMENT

        
	
			
	ADMINISTRATIVE AGENT:
	WELLS FARGO BANK, NATIONAL ASSOCIATION,

	 
	in its capacity as Administrative Agent, Issuing Lender,

	 
	Swingline Lender and as a Lender

	 
	 
	 

	 
	By:
	/s/ Michael Pugsley  

	 
	Name:
	Michael Pugsley

	 
	Title:
	Senior Vice President

	 
	 
	 

CREE, INC.
FOURTH AMENDMENT

	
			
	LENDERS
	BMO Harris Bank, N.A.,

	 
	in its capacity as a Lender

	 
	 
	 

	 
	By:
	/s/ Jeff LaRue

	 
	Name:
	Jeff LaRue

	 
	Title:
	Vice President

	 
	 
	 

CREE, INC.
FOURTH AMENDMENT

	
			
	LENDERS
	PNC BANK, NATIONAL ASSOCIATION,

	 
	in its capacity as a Lender

	 
	 
	 

	 
	By:
	/s/ Walter A. Martz

	 
	Name:
	Walter A. Martz

	 
	Title:
	Vice President

	 
	 
	 

CREE, INC.
FOURTH AMENDMENT

	
			
	LENDERS
	TRUST BANK, as successor by merger to SunTrust Bank,

	 
	in its capacity as a Lender

	 
	 
	 

	 
	By:
	/s/ Katie Lundin

	 
	Name:
	Katie Lundin

	 
	Title:
	Director

	 
	 
	 

CREE, INC.
FOURTH AMENDMENT

	
			
	LENDERS
	U.S. Bank National Association,

	 
	in its capacity as a Lender

	 
	 
	 

	 
	By:
	/s/ Lukas Coleman

	 
	Name:
	Lukas Coleman

	 
	Title:
	Vice President

	 
	 
	 

CREE, INC.
FOURTH AMENDMENT

	
			
	LENDERS
	BANK OF AMERICA N.A.,

	 
	in its capacity as a Lender

	 
	 
	 

	 
	By:
	/s/ Thomas M. Paulk

	 
	Name:
	Thomas M. Paulk

	 
	Title:
	Senior Vice President

	 
	 
	 

CREE, INC.
FOURTH AMENDMENT

	
			
	LENDERS
	Citibank, N.A.,

	 
	in its capacity as a Lender

	 
	 
	 

	 
	By:
	/s/ Jim Cahow

	 
	Name:
	Jim Cahow

	 
	Title:
	Vice President

	 
	 
	 

CREE, INC.
FOURTH AMENDMENT

	
			
	LENDERS
	FIRST HORIZON BANK,

	 
	in its capacity as a Lender

	 
	 
	 

	 
	By:
	/s/ Michael Privette

	 
	Name:
	Michael Privette

	 
	Title:
	Vice President

	 
	 
	 

CREE, INC.
FOURTH AMENDMENT

	
			
	LENDERS
	JPMORGAN CHASE BANK, N.A.,

	 
	in its capacity as a Lender

	 
	 
	 

	 
	By:
	/s/ Maria Riaz

	 
	Name:
	MARIA RIAZ

	 
	Title:
	VICE PRESIDENT

	 
	 
	 

EXHIBIT A

Schedule 2.1

Commitments

	
			
	Lender
	Revolving Committed
Amount
	Revolving Commitment Percentage

	Wells Fargo Bank, National Association
	$45,000,000
	18.0%

	 
	 
	 

	BMO Harris Bank, N.A.
	$37,500,000
	15.0%

	 
	 
	 

	PNC Bank National Association
	$37,500,000
	15.0%

	 
	 
	 

	SunTrust Bank
	$37,500,000
	15.0%

	 
	 
	 

	U.S. Bank National Association
	$37,500,000
	15.0%

	 
	 
	 

	Bank of America, N.A.
	$17,500,000
	7.0%

	 
	 
	 

	Citibank, N.A.
	$17,500,000
	7.0%

	 
	 
	 

	First Horizon Bank
	$10,000,000
	4.0%

	 
	 
	 

	JPMorgan Chase Bank, N.A.
	$10,000,000
	4.0%

	 
	 
	 

	Total
	$250,000,000
	100.0%Exhibit 10.1

  

   

    

  
    
      EMPLOYMENT AGREEMENT

      

      

    

    
      

      

    

    
      THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of the 16th day of December, 2019, by and between Hibbett Sporting Goods, Inc., a Delaware corporation (the “Company”) and Michael E. Longo (“Executive”).

    

    
       

    

    
      WHEREAS, Executive desires to provide the Company and its affiliates with his services and the Company desires to hire and employ Executive on the terms and subject to the conditions set forth herein.

    

    
       

    

    
      NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
          Company and Executive (individually a “Party” and together the “Parties”), intending to be legally bound, agree as follows:

    

    
       

      1.   Term of Employment.

       

    

    
      The term of Executive’s employment under this Agreement shall commence on December 16, 2019 (the “Commencement Date”) and shall continue until
        either Party notifies the other Party in writing that he or it is electing to terminate this Agreement as of the date so specified in such notice.  If the Company notifies Executive that it is terminating this Agreement, the Company shall terminate
        Executive’s employment hereunder no later than the date of this Agreement’s termination, and shall specify whether such termination of employment is for Cause, is other than for Cause, or is due to Total Disability (as the terms, “Cause” and “Total
        Disability” are defined below).  The period in which this Agreement is in effect shall be referred to herein as the “Term.”

    

    
       

      2.  Position and Duties.

       

    

    
      2.1  Generally.  During the
          Term, Executive shall serve as President and Chief Executive Officer of the Company and of its parent, Hibbett Sports, Inc., a Delaware corporation (the “Parent”) and shall have such duties, responsibilities and authority as are customary for
          such position and such other titles, duties, responsibilities and authorities as shall be assigned by the Board of Directors of the Parent (the “Board”) from time to time consistent with such position. As used in this Agreement, the term
          “Company” shall be deemed to include the Parent and all subsidiaries thereof, except where the context otherwise requires. Except as permitted by Section 2.2 or otherwise approved by the Board, Executive shall devote his full working time,
          attention, knowledge and skills faithfully and to the best of his ability, to the duties and responsibilities assigned by the Board in furtherance of the business affairs and activities of the Company and its subsidiaries, affiliates and
          strategic partners.  Executive shall report solely to the Board.  Contemporaneously with the termination of Executive’s employment for any reason, Executive shall automatically resign from all offices and positions, including if applicable as a
          member of the Board or any subsidiary’s board of directors, he holds with the Company or any subsidiary without any further action on the part of Executive or the Company; provided, however, that Executive agrees to execute any additional
          documents required or requested by the Company with respect to such resignations.

    

    
       

      
        
          

      

    

    
      2.2  Other Activities.   Anything herein to the contrary notwithstanding, nothing in this Agreement shall preclude Executive from engaging in the following activities:  (i) serving on the
          board of directors of a reasonable number of trade associations and/or charitable organizations, subject to the approval of the Board which shall not be unreasonably withheld, (ii) engaging in charitable activities and community affairs, (iii)
          serving on the board of directors of each of Exide Technologies and Heniff Transportation and (iv) managing his personal investments and
            affairs, provided that any such matters that relate to ML Group or any of other affiliate of Executive or his immediate family that does business with the Company may only be conducted in accordance with terms disclosed to and approved by the
            Board of Directors of the Company (or any committee thereof), provided that Executive’s activities pursuant to clauses (i), (ii) or (iii) do not violate Section 6 below or materially interfere with the proper performance of his duties and
            responsibilities under this Agreement.  Executive shall at all times be subject to, observe and carry out such rules, regulations, policies, directions, and restrictions as the Company may from time to time establish for officers of the Company
            or employees generally.  Executive shall not be permitted to serve on board of directors of any public companies without the prior approval of the Board.

    

    
       

      3.  Compensation.

       

    

    
      3.1  Base Salary.  During the
          Term, as compensation for his services hereunder, Executive shall receive a salary at the annualized rate of Five Hundred Thousand Dollars ($500,000) per year (“Base Salary” as such may be adjusted from time to time, subject to Section 5.3 and
          Section 5.4), which shall be paid in accordance with the Company’s normal payroll practices and procedures, less such deductions or offsets required by applicable law or otherwise authorized by Executive.

    

    
       

    

    
      3.2  Annual Performance Bonus.  Executive
          shall participate each fiscal year during the Term in the Company’s annual bonus plan as adopted and approved by the Board or the Compensation Committee of the Board (the “Compensation Committee”) from time to time.  For the current fiscal year
          of the Company (“FY2020”), Executive shall retain a bonus opportunity pursuant to such plan, target amounts and other performance criteria as in effect under the terms of his employment immediately prior to the Commencement Date.  In addition,
          Executive shall have a bonus opportunity pursuant to such plan, with the performance criteria and target bonus percentage as in effect for the Chief Executive Officer of the Company immediately prior to the Commencement Date (the “CEO Target
          Bonus”), subject to proration by multiplying such CEO target bonus by a fraction, the numerator of which is the number of days from the Commencement Date through the last day of FY2020 and the denominator of which is the number of days in
          FY2020. 

    

    
       

    

    
      3.3  Inducement and Equity Awards.

    

    
       

    

    
      (a)  Employment Inducement Award — Restricted Stock
            Units.  As an inducement to commence employment as President and Chief Executive Officer of the Company, on the first regularly scheduled new-hire grant date following the Commencement Date, Executive will be granted an equity award
        denominated in shares of common stock of the Company (“Company Stock”) (the “Restricted Stock Units”) determined by dividing $500,000 by the price of a share of Company Stock on December 13, 2019, as determined consistent with the Company’s 2015
        Equity Incentive Plan (the “2015 Plan”) and applicable corporate policies. The vesting restrictions on the Restricted Stock Units shall lapse on January 1, 2023, subject to continued service through such date, and the Restricted Stock Units shall
        otherwise be evidenced by and subject to the terms of an award agreement under the 2015 Plan.

    

    
       

      
        
          

      

    

    
      (b)  Participation in the 2015 Plan. 
        Executive will be eligible to participate during the Term in the 2015 Plan and any successor plan, provided that the Company’s Compensation Committee retains discretion over the terms and conditions of any awards to be made thereunder.

    

    
       

      4.  Additional Benefits.

       

    

    
      4.1 
        Employee Benefits.  During
          the Term, Executive shall be eligible to participate in the employee benefit plans in which officers of the Company are generally eligible to participate, subject to satisfaction of any eligibility requirements and the other generally applicable
          terms of such plans.  Nothing in this Agreement shall prevent the Company from amending or terminating any employee benefit plans of the Company from time to time as the Company deems appropriate.

    

    
       

    

    
      4.2  Expenses.  The Company
          shall reimburse Executive for any expenses reasonably incurred by his during the Term (and at any time during his employment thereafter), in furtherance of his duties hereunder, including travel, meals and accommodations (but excluding relocation
          expenses and commuting expenses), upon submission of vouchers or receipts and in compliance with such rules and policies relating thereto as the Company may from time to time adopt or as may be required in order to permit such payments to be
          taken as proper deductions by the Company or any subsidiary under the Internal Revenue Code of 1986, as amended, and the rules and regulations adopted pursuant thereto now or hereafter in effect (the “Code”).

    

    
       

    

    
      4.3  Vacation.  During each
          year of the Term, Executive shall be entitled to the number of days of paid vacation determined under applicable Company policies as in effect from time to time but treating periods of employment with the Company as including periods of
          employment with City Gear, LLC.

    

    
       

    

    
      4.4  Relocation Allowance.  The
          Company shall provide to Executive on January 1, 2020, a one-time payment of $100,000 (one hundred thousand dollars) as a relocation allowance.

      

      

      4.5  Temporary Housing.  The
          Company will provide temporary housing to Executive for 90 days beginning on the Commencement Date.

    

    
        

      
        
          

      

      5.  Termination.

       

    

    
      5.1  Termination of Executive’s Employment by the Company for Cause.  The Company may terminate Executive’s employment hereunder for Cause (as defined below).  Such termination of employment shall be effected by written notice thereof delivered by the Company to Executive, indicating in
          reasonable detail the facts and circumstances alleged to provide a basis for such termination of employment, and shall be effective as of the date of such notice in accordance with Section 9 hereof.  For purposes of this Agreement, “Cause” shall
          mean (A) the willful and continued failure by Executive to perform his material duties with respect to the Company or its affiliates for a
            period of more than 30 days; (B) the willful or intentional engaging by Executive in conduct that causes material injury, monetarily, reputationally or otherwise, to the Company including, without limitation, breach of fiduciary duty, fraud,
            misappropriation, embezzlement or theft; (C) Executive’s commission of, conviction for, or a plea of nolo contendere to a felony; (D) any other act involving serious moral turpitude; or (E) Executive’s breach of this Agreement or any material
            company policy or board directive (including, without limitation, policies on drug use or sexual harassment) after notice from the Company and failure of Executive to cure within 10 days after receipt of notice from the Company.

    

    
       

    

    
      5.2  Compensation upon Termination by the Company for Cause or by Executive without Good Reason.   Executive’s employment hereunder may be terminated during the Term by the Company for Cause or by Executive without Good Reason, provided that any termination of
          Executive’s employment by Executive without Good Reason shall be effective upon a thirty (30) day notice to the Company or such earlier date as the Company determines in its discretion and designates in writing.  Without limiting Executive’s
          right to challenge the Company’s assertion of Cause or the Company’s right to challenge Executive’s assertion of Good Reason, a termination of Executive’s employment by the Company for Cause or by Executive without Good Reason shall not
          constitute a breach of this Agreement.  In the event of Executive’s termination of employment (i) by the Company for Cause or (ii) by Executive without Good Reason, Executive shall be entitled to receive (i) all amounts of accrued but unpaid Base
          Salary through the effective date of such termination of employment; (ii) reimbursement for reasonable and necessary expenses incurred by Executive through the date of notice of such termination of employment, to the extent otherwise provided
          under Section 4.2 above; and (iii) all other vested payments and benefits to which Executive may otherwise be entitled pursuant to the terms of the applicable benefit plan or arrangement through the effective date of such termination of
          employment ((i), (ii) and (iii), the (“Accrued Benefits”)).  All other rights of Executive (and all obligations of the Company) hereunder or otherwise in connection with Executive’s employment with the Company shall terminate effective as of the
          date of such termination of employment and Executive shall not be entitled to any payments or benefits not specifically described in this Section 5.2. 

    

    
      

      

    

    
      5.3  Compensation upon Termination of Executive’s Employment by the Company Other Than for Cause or by Executive for Good Reason. 
          Executive’s employment hereunder may be terminated at any time during the Term by the Company other than for Cause or by Executive for Good Reason.  In the event that Executive’s employment hereunder is terminated by the Company other than for
          Cause or by Executive for Good Reason (and other than as provided in Section 5.5):

    

    
       

    

    
      (a)  Executive shall be entitled to receive (i) the Accrued Benefits, (ii) an amount equal to one times the sum of Executive’s then Base Salary
        plus Executive’s estimated earned annual target bonus, prorated as of the date of termination of employment, such amount payable in equal installments pursuant to the Company’s standard payroll procedures for management employees over a period of
        one year, commencing on the payroll payment date for the first full payroll period following the date that the Release (as defined below) becomes irrevocable (provided, if as of the date of termination of employment the Release could become
        irrevocable in either of two taxable years of Executive, to the extent required to avoid the imposition of taxes and penalties under Section 409A of the Code, payments will not commence before the first day of the later such taxable year).

    

    
        

      
        
          

      

    

    
      (b)  All other rights of Executive (and all obligations of the Company) hereunder or otherwise in connection with Executive’s employment with
        the Company shall terminate effective as of the date of such termination of employment and Executive shall not be entitled to any payments or benefits not specifically described in Section 5.3(a).

    

    
       

    

    
      To be eligible for the payment described in Section 5.3(a)(ii) above, Executive must (x) execute, within forty-five (45) days
        after the date of termination of employment, not revoke, and abide by a release of claims in a form acceptable to the Company (the “Release”), (y) cooperate with the Company in the event of litigation, and (z) fully comply with Executive’s
        obligations under Section 6 below.

        

      5.4  Definition of Good Reason.  For
          purposes of this Agreement, “Good Reason” shall mean means the occurrence of any of the following, without the prior written consent of Executive:  (i) a substantial reduction in Executive’s annual base salary or bonus opportunity, or (ii) a
          material, adverse change in the Executive’s duties or responsibilities, in either case other than in connection with the termination of Executive’s employment for Cause.  For Executive to have the right to resign for Good Reason, all of the
          following must timely occur: (x) Executive must provide the Company with notice of the occurrence of any of the Good Reason events within the 90 day period immediately following the first occurrence of such event and such notice must describe in
          detail the Good Reason event and the proposed cure to such event, (y) the Company must fail to cure such event with a period of 30 days from the date of receipt of such notice, and (z) a written notice of termination must be delivered by
          Executive to the Company (and Executive must terminate his employment thereunder) within 90 days following the day on which the 30-day period set forth in the preceding clause (y) expires.      

      

      

      5.5  Compensation upon Termination of Executive’s Employment by Reason of Executive’s Death or Total Disability.  During the Term, Executive’s employment hereunder shall terminate upon Executive’s death and may be terminated by the Company on account of Executive’s
          Total Disability (as defined below).  In the event that Executive’s employment with the Company is terminated by reason of Executive’s death or due to involuntary termination of Executive’s employment by the Company on account of Executive’s
          Total Disability (as defined below), subject to the requirements of applicable law,  Executive or Executive’s estate, as the case may be, shall be entitled to receive (i) the Accrued Benefits, (ii) any other benefits payable under any benefit
          plans of the Company pursuant to the terms of such plans on the date of Executive’s termination of employment under this Section 5.5.  For purposes of this Agreement, “Total Disability” shall mean any physical or mental disability that prevents
          Executive from (a)(i) performing one or more of the essential functions of his position for a period of not less than ninety (90) days in any twelve (12) month period and (ii) which is expected to be of permanent or indeterminate duration but
          expected to last at least twelve (12) continuous months or result in death of Executive as determined (y) by a physician selected by the Company or its insurer or (z) pursuant to the Company’s benefit programs; or (b) reporting to work for ninety
          (90) or more consecutive business days or as a result of which Executive is unable to engage in any substantial activity.

      

      

      5.6  No Other Severance or Termination Benefits.  Except as expressly set forth herein (including in Section 10.10 hereof), Executive shall not be entitled to any contractual severance or other benefits upon termination of employment with the Company under any
          circumstances and for any or no reason, including, but not limited to any severance pay under any Company severance plan, policy or practice.

    

    
       

      
        
          

      

      6.  Protection of Confidential Information, Noncompetition, Arbitration.

       

    

    
      Executive acknowledges and affirms that he is subject to that certain Restrictive Covenant Agreement, dated as of November 5, 2018 (the “2018
        Agreement”) by and among Hibbett Sporting Goods, Inc., a Delaware corporation and Michael E. Longo, and that his compliance with the 2018 Agreement is a condition of this Agreement  Executive acknowledges and affirms that he has executed, as of the
        Commencement Date, a Nondisclosure Noncompetition Agreement with City Gear, LLC, Hibbett Sporting Goods, Inc., Hibbett Wholesale, Inc., and/or Hibbett Holdings, LLC (the “Nondisclosure Agreement”) and a Mutual Arbitration Agreement, with City Gear,
        LLC, Hibbett Sporting Goods, Inc., Hibbett Wholesale, Inc., and/or Hibbett Holdings, LLC (the “Arbitration Agreement”), and that his compliance with the Nondisclosure Agreement and Arbitration Agreement is a condition of this Agreement.  In the
        event that Executive is receiving payments and benefits pursuant to Section 5.3, above, in addition to any right or remedy available under the 2018 Agreement, the Nondisclosure Agreement, the Arbitration Agreement, or applicable law, the Company
        shall immediately cease making and providing Executive any future payments and benefits (except for the Accrued Benefits) and be promptly reimbursed by Executive for any payments and benefits (except for the Accrued Benefits) paid or provided to
        Executive pursuant to Section 5.3 during the period of such breach by Executive. 

    

    
       

      7.  Arbitration.  Executive acknowledges and affirms that the validity, construction, enforcement, and interpretation of this Agreement are governed by
          and subject to the Arbitration Agreement.

        

      8.  Assignment.

       

    

    
      (a)  Neither this Agreement, nor any of Executive’s rights or obligations hereunder, may be assigned or otherwise subject to hypothecation by
        Executive.  Subject to the following sentence, any attempt by Executive to anticipate, alienate, assign, sell, transfer, pledge, encumber or charge the same shall be void.  In the event of Executive’s death, the Company shall pay to Executive’s
        estate, as applicable, (i) all unpaid amounts that were payable to Executive immediately prior to his death, on the same schedule as in effect immediately prior to his death, or (ii) all amounts due under Section 5.5.

    

    
       

    

    
      (b)  The Company may freely assign its rights and obligations hereunder, and Executive hereby consents to any such assignment, in whole or in
        part, to any of the Company’s subsidiaries, affiliates, or parent corporations. The Company shall assign this Agreement to any successor or assign in connection with the sale of all or substantially all of the Company’s assets or stock, or in
        connection with any merger in which the Company is not the survivor, or any acquisition and/or reorganization involving the Company.

    

    
       

      9.  Notices.

       

    

    
      All notices and other communications under this Agreement shall be in writing and shall be: (i) in writing; (ii) delivered personally, by fax,
        by electronic mail, by courier service, or by certified or registered mail, first class postage prepaid and return receipt requested; (iii) deemed to have been received on the date of delivery or, if sent by certified or registered mail, on the
        third (3rd ) business day after the mailing thereof, or if sent by fax, twenty-four (24) hours after transmission of a fax; and (iv) addressed as follows (or to such other address as the Party entitled to notice shall hereafter designate in
        accordance with the terms hereof):

    

    
       

      
        
          

      

       

        

      If to the Company:   
           Hibbett Sporting Goods, Inc.

       2700 Milan Court

       Birmingham, Alabama 35211

       Attention: General Counsel

      

      

      If to Executive:           Michael E. Longo

       Address on file with the
        Company

      

      

      Any Party may change such Party’s address for notices by notice duly given pursuant hereto.

       

      10.  General.

       

    

    
      10.1  Governing Law.  This Agreement is executed in Alabama and shall be governed by and construed and enforced in accordance
          with the laws of the State of Alabama and applicable federal law without giving effect to conflicts of laws principles thereof which might refer such interpretations to the laws of a different state or jurisdiction.

    

    
       

    

    
      10.2  Amendments: Waivers.  This
          Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms or covenants hereof may be waived, only by a written instrument executed by the Parties, or in the case of a waiver, by the Party waiving compliance. The
          failure of any Party at any time or times to require performance of any provision hereof shall in no manner affect the right of such Party at a later time to enforce the same.  No waiver by any Party of the breach of any term or covenant
          contained in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waiver of the breach of any other term or covenant
          contained in this Agreement.

    

    
       

    

    
      10.3  Conflict with Other Agreements.  Executive
          represents and warrants that neither his execution of this Agreement nor the full and complete performance of his obligations hereunder will violate or conflict in any respect with any written or oral agreement or understanding with any person or
          entity.

    

    
       

    

    
      10.4  Successors and Assigns.  This
          Agreement shall inure to the benefit of and shall be binding upon the Company (and its successors and assigns) and Executive and his heirs, executors and personal representatives.

    

    
       

    

    
      10.5  Withholding.  Notwithstanding
          any other provision of this Agreement, the Company may withhold from amounts payable under this Agreement all federal, state, local, and foreign income and employment taxes that are required to be withheld by applicable laws or regulations.

    

    
       

    

    
      10.6  General Severability.  The
          invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.  If any provision of this Agreement shall be held invalid or unenforceable in part, the
          remaining portion of such provision, together with all other provisions of this Agreement, shall remain valid and enforceable and continue in full force and effect to the fullest extent consistent with law.

    

    
        

      
        
          

      

    

    
      10.7  Survival.  In the event
          of any termination of Executive’s employment during the Term, or upon or after expiration of the Term, Executive and the Company nevertheless shall continue to be bound by the terms and conditions set forth in Sections 5 through 11 hereof, which
          shall survive the expiration of the Term.

    

    
       

    

    
      10.8  Captions.  The section
          headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

    

    
       

    

    
      10.9  Counterparts; Electronic Signatures.  This Agreement may be executed by the Parties hereto in separate counterparts; each of which when so executed and delivered shall be an original but all such counterparts together shall constitute one and the same instrument. 
          Each party agrees that electronic signatures, whether digital or encrypted, of either party to this Agreement, are intended to authenticate this writing and to have the same force and effect as manual signatures.

      

      

      10.10  Certain Other Agreements.  The Parties acknowledge that the Company may from time to time have in place a change in control severance agreement with its senior executives, including Executive. 
          In addition, the Parties acknowledge that, independent of this Agreement, the Company may have payment obligations under the Membership Interest And Warrant Purchase Agreement by and among Hibbett Sporting
          Goods, Inc., City Gear, LLC, and others, dated as of October 29, 2018.

    

    
       

      11.  Compliance with Code Section 409A.

       

    

    
      11.1  Interpretation.  The intent of the Parties is that payments and benefits under this Agreement comply with Section 409A
          of the Code (“409A”), to the extent subject thereto, and accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance therewith.  Notwithstanding anything contained herein to the contrary,
          Executive shall not be considered to have terminated employment with the Company for purposes of any payments under this Agreement which are subject to 409A until Executive has incurred a “separation from service” from the Company within the
          meaning of 409A.  For purposes of 409A, each payment and each installment described in this Agreement shall be considered a separate payment from each other payment or installment and to the extent required by 409A, a payment due upon termination
          of employment will only be paid upon Executive’s separation from service within the meaning of such term under 409A.

    

    
       

    

    
      11.2  Payment of Benefits.  To
          the extent necessary to avoid adverse tax consequences, and except as described below, any payment to which Executive becomes entitled under the Agreement, or any arrangement or plan referenced in this Agreement, that constitutes “deferred
          compensation” under 409A, and is (a) payable upon Executive’s termination of employment; (b) at a time when Executive is a “specified employee” as defined by 409A shall not be made until the first payroll date after the earliest of:  (1) the
          expiration of the six (6) month period (the “Deferral Period”) measured from the date of Executive’s “separation from service” within the meaning of such term under 409A; or (2) the date of Executive’s death.

       

      

      
        
          

      

    

    
      On the first payroll date after the expiration of the Deferral Period, all payments that would have been made during the Deferral Period
        (whether in a single lump sum or in installments) shall be paid as a single lump sum to Executive or, if applicable, his beneficiary.  The delay of payment provided in this Section 11.2 shall not apply to any payment which meets the short term
        deferral exception to 409A or constitutes “separation pay” as described in Treasury Regulation Section 409A-1(b)(9) (in general, payments (i) that are made on an involuntary separation from service which (ii) do not exceed the lesser of two
        (2) times (x) Executive’s annualized compensation for the taxable year preceding the year in which the separation from service occurs or (y) the Code Section 401(a)(17) limit on compensation for the year in which separation from service occurs and
        (iii) are paid in total by the end of the second calendar year following the calendar year in which the separation from service occurs).

    

    
       

    

    
      The Company shall pay to Executive the Accrued Benefits, within ten (10) days after the Date of Termination.  Notwithstanding the foregoing, if
        Executive is a “specified employee”, as defined by 409A, and payment of the Accrued Benefits is required to be delayed under 409A, the Company shall pay to Executive the Accrued Benefits on the first payroll date after the six (6) month anniversary
        of the Date of Termination.

    

    
        

    

    
      11.3  Reimbursements.   To the
          extent required by 409A, with regard to any provision that provides for the reimbursement of costs and expenses, or for the provision of in-kind benefits:  (i) the right to such reimbursement or in-kind benefit shall not be subject to liquidation
          or exchange for another benefit; (ii) the amount of expenses or in-kind benefits available or paid in one (1) year shall not affect the amount available or paid in any subsequent year; and (iii) such payments shall be made on or before the last
          day of Executive’s taxable year in which the expense occurred.

      

      

    

    
      [Signature page follows]

    

    
      
        

    

    

    

    

    

    
       

    

    
      IN WITNESS WHEREOF, Executive and the Company have executed this Agreement as of the date first written above.

      

      

    

    	
            EXECUTIVE

          
	 
	
            /s/ Michael E. Longo

          
	
            Michael E. Longo

          
	 
	
             

            HIBBETT SPORTS, INC.

          
	
             

             

            By:  /s/ Tony F. Crudele

          
	
            Its Chairman of the Board

          

    
      

      

      

      

      End of Exhibit 10.1

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