Document:

Amendment No. 1 to Intercreditor Agreement

 Exhibit 10.1 
 AMENDMENT NO. 1 TO INTERCREDITOR AGREEMENT 
 This Amendment No. 1 to
Intercreditor Agreement, dated as of May 20, 2011 (this “Amendment”), is entered into by and among UBS AG, STAMFORD BRANCH, as First Lien Agent, U.S. BANK NATIONAL ASSOCIATION, as Original Second Lien Agent and as Second Lien
Collateral Agent, NORCRAFT COMPANIES, L.P., a Delaware limited partnership (“Borrower”), NORCRAFT INTERMEDIATE HOLDINGS, L.P., a Delaware limited partnership, NORCRAFT FINANCE CORP., a Delaware corporation, and NORCRAFT CANADA
CORPORATION, a Nova Scotia unlimited liability company (each, a “Guarantor” and, together with the Borrower, each, a “Norcraft Party” and collectively, the “Norcraft Parties”). 

RECITALS 

A. The First Lien Agent, the Original Second Lien Agent, the Second Lien Collateral Agent and the Norcraft Parties are parties to that
certain Intercreditor Agreement, dated as of December 9, 2009 (as amended hereby and as it may be from time to time hereafter amended, restated or otherwise modified from time to time, the “Intercreditor Agreement”).

 B. The Borrower has requested that the First Lien Agent, the Original Second Lien Agent and the Second Lien Collateral Agent
agree to amend the Intercreditor Agreement, as and to the extent set forth in this Amendment and subject to the terms and conditions set forth in this Amendment. 
 C. The First Lien Agent, the Original Second Lien Agent and the Second Lien Collateral Agent are willing to so amend the Intercreditor Agreement as and to the extent, and subject to the terms and
conditions, set forth in this Amendment. 
 NOW THEREFORE, in consideration of the premises and the mutual covenants hereinafter
contained, the Norcraft Parties, the First Lien Agent, the Original Second Lien Agent and the Second Lien Collateral Agent hereby agree as follows: 
 1. Definitions. Except to the extent otherwise specified herein, capitalized terms used in this Amendment shall have the same meanings ascribed to them in the Intercreditor Agreement (as amended
hereby). 
 2. Amendment. Subject to the terms and conditions hereof, the Intercreditor Agreement is hereby amended as
follows: 
 2.1. Section 1.1 (Definitions) of the Intercreditor Agreement is hereby amended by amending and
restating in its entirety the definition of “Senior Secured Notes” as follows: 
 “Senior Secured
Notes” shall mean, collectively, the 10 1/2% Senior Secured Second Lien Notes due 2015 issued by Borrower and Norcraft Finance pursuant to the Second Lien Note Indenture in an aggregate principal amount of up to $240.0 million, as the same
now exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. 

 3. Conditions Precedent to Effectiveness. The effectiveness of the amendment and
other agreements set forth in this Amendment are subject in each instance to the satisfaction of each of the following conditions precedent, each in a manner reasonably satisfactory to each of the First Lien Agent, the Original Second Lien Agent and
the Second Lien Collateral Agent: 
 3.1. Requisite Consents. The Controlling Secured Parties (as defined in the Second
Lien Note Indenture) shall have consented to the amendment of the Intercreditor Agreement in substantially the form hereof. 

3.2. Amendment. This Amendment shall have been duly executed and delivered by each Norcraft Party, the First Lien Agent, the
Original Second Lien Agent and the Second Lien Collateral Agent. 
 3.3. Issuance of Add-On Notes. The Add-On Notes (as
defined in the Second Lien Note Indenture as in effect upon the effectiveness of this Amendment) shall have been issued pursuant to the terms of the Second Lien Note Indenture. 

3.4. Payment of Consent Fees. The Borrower shall have paid, or caused to be paid, the Consent Fees (as defined in the
Borrower’s Consent Solicitation Statement, dated May 16, 2011 (as amended, supplemented or otherwise modified from time to time, the “Consent Solicitation Statement”) with respect to the Senior Secured Notes) to each
Holder of the Notes that has validly tendered (and not validly revoked) a Consent (as defined in the Consent Solicitation Statement) prior to the Expiration Date (as defined in the Consent Solicitation Statement) in accordance with the Consent
Solicitation Statement. 
 4. Continuing Effect. Except as otherwise specifically set out herein, the provisions of the
Intercreditor Agreement shall remain in full force and effect. 
 5. Counterparts; Electronic Transmission. This
Amendment may be executed in one or more counterparts, each of which when so executed shall be an original and all of which shall together constitute one and the same instrument. The exchange of copies of this Amendment and of signature pages by
facsimile or .pdf transmission shall constitute effective execution and delivery of this Amendment as to the parties hereto and may be used in lieu of the original Amendment for all purposes. Signatures of the parties hereto transmitted by facsimile
or .pdf shall be deemed to be their original signatures for all purposes. 
 6. Severability. Any provision of this
Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
 7. Binding on Successors and Assigns. This Amendment shall be binding upon the First Lien Agent, the other First Lien Secured Parties, any Second Lien Agent, the other Second Lien Secured Parties,
Grantors and their respective permitted successors and assigns. 

  
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 8. GOVERNING LAW. THE VALIDITY, CONSTRUCTION AND EFFECT OF THIS AMENDMENT SHALL BE
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK BUT EXCLUDING ANY PRINCIPLES OF CONFLICTS OF LAW OR ANY OTHER RULE OF LAW THAT WOULD RESULT IN THE APPLICATION OF THE LAW OF ANY JURISDICTION OTHER THAN THE LAWS OF THE STATE OF NEW YORK.

 9. Section Titles. The section titles contained in this Amendment are and shall be without substantive meaning or
content of any kind whatsoever and are not part of this Amendment. 
 [Signature Pages Follow] 

  
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 IN WITNESS WHEREOF, this Amendment has been duly executed as of the date first written
above. 
  

			
	BORROWER
	
	NORCRAFT COMPANIES, L.P.
	By:	 	NORCRAFT GP, L.L.C., its general partner
		
	By:	 	 /s/ LEIGH GINTER

		 	Name: Leigh Ginter
		 	Title: Chief Financial Officer
	
	GUARANTORS
	
	NORCRAFT INTERMEDIATE HOLDINGS, L.P.
		
	By:	 	 /s/ LEIGH GINTER

		 	Name: Leigh Ginter
		 	Title: Chief Financial Officer
	
	NORCRAFT FINANCE CORP.
		
	By:	 	 /s/ LEIGH GINTER

		 	Name: Leigh Ginter
		 	Title: Vice President
	
	NORCRAFT CANADA CORPORATION
		
	By:	 	 /s/ LEIGH GINTER

		 	Name: Leigh Ginter
		 	Title: Vice President

 [SIGNATURE
PAGE TO AMENDMENT NO. 1 TO INTERCREDITOR AGREEMENT] 

 
			
	FIRST LIEN AGENT
	
	UBS AG, STAMFORD BRANCH, as First Lien Agent
		
	By:	 	 /s/ MARY E. EVANS

		 	Name: Mary E. Evans
		 	Title: Associate Director
		
	By:	 	 /s/ IRJA R. OTSA

		 	Name: Irja R. Otsa
		 	Title: Associate Director

 [SIGNATURE
PAGE TO AMENDMENT NO. 1 TO INTERCREDITOR AGREEMENT] 

 
			
	ORIGINAL SECOND LIEN AGENT AND SECOND LIEN COLLATERAL AGENT
	
	U.S. BANK NATIONAL ASSOCIATION, as Original Second Lien Agent and Second Lien Collateral Agent
		
	By:	 	 /s/ JOSHUA A. HAHN

		 	Name: Joshua A. Hahn
		 	Title: Assistant Vice President

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO INTERCREDITOR AGREEMENT]Tower Bancorp, Inc. Presidents Incentive Plan

 Exhibit 10.2 

	
	  
 Tower Bancorp, Inc.

PRESIDENTS’ INCENTIVE PLAN
 2011

 Eligible Executives: Tower Bancorp Inc. President –
Jeff Renninger; Graystone Tower Bank President – Janak Amin 
 Plan Features: 100% Holding Company Performance for the year ending
December 31, 2011 
 Award Date: March, 2012 
 Total incentive bonus opportunity is 20% of base pay earnings at threshold, 40% of base pay earnings at target and 60% of base pay earnings at optimum. 

Holding Company Adjusted Core Operating Earnings Per Share (40%) 

 

			
	•	  	Adjusted Core Operating Earnings are defined as GAAP net income less merger expense and other non-recurring items as publicly reported, and further excluding all additional
losses and restructuring charges incurred in connection with the wind down and restructuring of the American Home Bank Division in 2011.

  

			
	 Target = $1.86
	  	 Bonus % (of base

pay)

	 Threshold 380% ($1.49)
	  	Up to 8%
	 Target 3100% ($1.86)
	  	Up to 16%
	 Optimum 3110% ($2.04)
	  	Up to 24%

Adjusted Core Operating Return on Tangible Equity (30%) 

 

			
	•	  	Calculated based on Adjusted Core Operating Earnings, defined as GAAP net income less merger expense and other non-recurring items as publicly reported, and further excluding all
additional losses and restructuring charges incurred in connection with the wind down and restructuring of the American Home Bank Division in 2011.

  

			
	 Target = 9.7%
	  	 Bonus % (of base

pay)

	 Threshold: 380% (7.8%)
	  	Up to 6%
	 Target: 3100% (9.7%)
	  	Up to 12%
	 Optimum: 3110% (10.7%)
	  	Up to 18%

 Achievement of Strategic Objectives (30%) 

 

			
	 •       Enhance brand profile of TOBC
Stock
  

•       Successfully negotiate and execute on key strategic
opportunities
  

•       Recruit and develop talent for key leadership
positions
  

•       Effectively manage balance sheet to ensure strong capital
profile
  

•       Achieve Best Place to Work recognition
	  	Bonus % (of base
 pay)

	Threshold = Satisfactory	  	Up to 6%
	Target = Meets Expectations	  	Up to 12%
	Optimum = Exceeds Expectations	  	Up to 18%

 Qualifiers:

  

	•	 	 Must achieve satisfactory rating on all regulatory exams. 

 

	•	 	 Executive must be employed on the date of payout. 

  

	•	 	 Executive must achieve a rating of “Good” (3) or higher performance level. 

* This plan may be altered, modified, or terminated at any time and without notice.

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