Document:

Exhibit 10.1

Exhibit 10.1

FIFTH AMENDMENT TO

FINANCING AGREEMENT

THIS FIFTH AMENDMENT TO FINANCING AGREEMENT (this “Amendment”), dated as of this
9th day of February, 2010, is made by and among:

CROWN CRAFTS, INC., a Delaware corporation (“CCI”);

CHURCHILL WEAVERS, INC., a Kentucky corporation (“Weavers”);

HAMCO, INC., a Louisiana corporation (“Hamco”);

CROWN CRAFTS INFANT PRODUCTS, INC., a Delaware corporation (“CCIP”; together with CCI,
Weavers and Hamco, the “Companies” and each a “Company”); and

THE CIT GROUP/COMMERCIAL SERVICES, INC., a New York corporation (“CIT”),

to the Financing Agreement, dated July 11, 2006 (as amended, modified, restated or
supplemented from time to time, the “Financing Agreement”), among CIT and the Companies.
All capitalized terms used herein without definition shall have the meanings ascribed to such terms
in the Financing Agreement.

RECITALS

A. Pursuant to the Financing Agreement, CIT has agreed to make loans and extend credit to the
Companies in the amounts, upon the terms and subject to the conditions contained therein.

B. The Companies have requested that CIT amend the Financing Agreement to permit the payment
by CCI of cash dividends on its common stock.

C. CIT has agreed to such request, subject to the terms and conditions contained herein, and
to accomplish the foregoing, the Companies and CIT desire to enter into this Amendment.

STATEMENT OF AGREEMENT

NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the
Companies and CIT hereby agree as follows:

 

 

 

ARTICLE I

AMENDMENT TO FINANCING AGREEMENT

The defined term “Permitted Distributions” in Section 1.1 of the Financing Agreement
is amended in its entirety to read as follows:

“Permitted Distributions shall mean:

(a) dividends from a wholly-owned subsidiary of a Company to such Company;

(b) dividends payable solely in stock or other equity interests of the
Companies; and

(c) provided no Default or Event of Default exists at the time of the proposed
payment thereof, cash dividends on CCI’s common stock not to exceed the sum of
$500,000 in the aggregate.”

ARTICLE II

REPRESENTATIONS AND WARRANTIES

The Companies hereby represent and warrant to CIT that:

2.1 Compliance With the Financing Agreement. As of the execution of this Amendment,
each Company is in compliance with all of the terms and provisions set forth in the Financing
Agreement and the other Loan Documents to be observed or performed by such Company.

2.2 Representations in Financing Agreement. The representations and warranties of
each Company set forth in the Financing Agreement and the other Loan Documents are true and correct
in all material respects except to the extent that such representations and warranties relate
solely to or are specifically expressed as of a particular date or period which is past or expired
as of the date hereof.

2.3 No Event of Default. No Default or Event of Default exists.

 

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ARTICLE III

GENERAL

3.1 Loan Documents. The Financing Agreement and the other Loan Documents are amended
to provide that any reference therein to the Financing Agreement shall mean, unless otherwise
specifically provided, the Financing Agreement as amended hereby, and as further amended, restated,
supplemented or modified from time to time.

3.2 Full Force and Effect. As expressly amended hereby, the Financing Agreement and
the other Loan Documents shall continue in full force and effect in accordance with the provisions
thereof. As used in the Financing Agreement and the other Loan Documents, “hereinafter,” “hereto,”
“hereof,” or words of similar import, shall, unless the context otherwise requires, mean the
Financing Agreement or the other Loan Documents, as the case may be, as amended by this Amendment.

3.3 Applicable Law. This Amendment shall be governed by and construed in accordance
with the internal laws and judicial decisions of the State of New York.

3.4 Counterparts. This Amendment may be executed in one or more counterparts, each of
which shall constitute an original, but all of which when taken together shall constitute but one
and the same instrument.

3.5 Further Assurances. The Companies shall execute and deliver to CIT such
documents, certificates and opinions as CIT may reasonably request to effect the amendments
contemplated by this Amendment.

3.6 Headings. The headings of this Amendment are for the purpose of reference only
and shall not effect the construction of this Amendment.

3.7 Expenses. The Companies shall reimburse CIT for CIT’s legal fees and expenses
(whether in-house or outside) incurred in connection with the preparation, negotiation, execution
and delivery of this Amendment and all other agreements and documents contemplated hereby.

3.8 Waiver of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH
COMPANY AND CIT WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM OF
ANY KIND ARISING OUT OF OR RELATED TO THIS AMENDMENT, THE FINANCING AGREEMENT OR THE OTHER LOAN
DOCUMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO.

[signatures appear on the following pages]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered
by their duly authorized officers to be effective on the day and year first above written.

	 	 	 	 	 
	 	CCI:

CROWN CRAFTS, INC.

 	 
	 	By:  	/s/ Olivia Elliott
 	 
	 	 	Olivia Elliott 	 
	 	 	CFO 	 
	 
	 	WEAVERS:

CHURCHILL WEAVERS, INC.

 	 
	 	By:  	/s/ Olivia Elliott
 	 
	 	 	Olivia Elliott 	 
	 	 	CFO 	 
	 
	 	HAMCO:

HAMCO, INC.

 	 
	 	By:  	/s/ Olivia Elliott
 	 
	 	 	Olivia Elliott 	 
	 	 	CFO 	 
	 
	 	CCIP:

CROWN CRAFTS INFANT PRODUCTS, INC.

 	 
	 	By:  	/s/ Olivia Elliott
 	 
	 	 	Olivia Elliott 	 
	 	 	CFO 	 
	 

[signatures continue on the following page]

 

 

 

	 	 	 	 	 
	 	CIT:

THE CIT GROUP/COMMERCIAL SERVICES, INC.

 	 
	 	By:  	/s/ Vernon Wells
 	 
	 	 	Vernon Wells 	 
	 	 	Vice PresidentExhibit 10.1

EXHIBIT 10.1

FY 2010 R.G. BARRY

MANAGEMENT BONUS PLAN

OBJECTIVES

	•	 	Consistently achieve company and individual objectives.

	•	 	Enhance ability to attract, recruit, and retain a top-notch professional management team.

	•	 	Provide motivation through “win-sharing”.

PLAN SPECIFICATIONS

	1.	 	Participation Levels

	 	 	Selected exempt associates participate in the plan. The levels listed below are based on a
position’s impact on profits.

	 	 	 
	Level	 	Position Level
	A

	 	President and CEO
	  B*

	 	SVP, Finance/CFO
	B

	 	Corporate Executives (Coaches)
	C

	 	Senior Executives (Captains)
	D

	 	Department Heads/Key Contributors

	 	 	The base salary as of the end of the plan (fiscal) year is used for the purposes of calculating
bonus payments.

	2.	 	Bonus Award Opportunity

	 	 	Threshold, target and maximum bonus award levels as a percentage of base salary are established
by level. Target award opportunities correspond to market competitive bonus opportunities.

	 	 	 	 	 	 	 	 	 
	Level	 	Threshold	 	 	Target	 	Maximum	 
	A
	 	25	%	 	Determined	 	140	%
	B*
	 	17.5	%	 	annually by	 	70	%
	B
	 	12.5	%	 	Board of	 	60	%
	C
	 	10	%	 	Directors	 	48	%
	D
	 	6.25	%	 	 	 	30	%

	3.	 	Performance Measurement

	 	 	Award payouts will be determined based on the following determinants of performance.

	 	•	 	Company Objectives Performance

	 	•	 	Individual Objectives Performance

	 	 	Poor individual performance (individual rating that “does not meet minimum expectations”) will
eliminate all payouts to that individual regardless of Team Member level.

	 	 	Corporate Financial Objectives Performance below the threshold level will eliminate payout for
all plan participants.

 

 

 

	4.	 	Performance Weighting by Group

	 	 	 	 	 	 	 	 	 
	 	 	Company	 	 	Individual	 
	 	 	Objectives	 	 	Objective	 
	Levels	 	Results	 	 	Results	 
	A/B
	 	 	100	%	 	 	N/A	 
	C/D
	 	 	50	%	 	 	50	%

	5.	 	Determining Goal Attainment

	 	•	 	Corporate Objectives are established annually. Objectives will be a combination of
financial and strategic initiatives. Measures are set by senior management. Measures are
approved, and degree of attainment is approved by the Compensation Committee.

	 	•	 	Individual/Department Objectives are established annually by participants. Degree of
attainment is reviewed by Corporate Executive and approved by President/CEO, and are
described in quantitative, measurable terms.

	6.	 	Criteria for Participation

	 	•	 	Team Members must be actively employed by R.G. Barry at the close of the plan year.

	 	•	 	New hires employed before December 31st of the plan year will participate on a pro-rated
basis. Persons hired after this date will participate in the following year. Exceptions
may be made by the President/CEO. For Team Members hired January 1st or after
in the plan year, participation levels and eligibility must be included in any
offer of employment letter, along with a start date of employment. The start date of
employment is the entry date of the new Team Member into the Management Bonus Plan.

	 	•	 	Regarding pro-ration: Team Members hired or promoted into a Management Bonus Plan
eligible position from the first to the fifteenth of the month shall be considered to be
hired or promoted as of the first of the month. Team Members hired or promoted from the
sixteenth to the end of the month shall be considered to be hired or promoted as of the
first of the following month.

	 	•	 	Review and approval of Management Bonus Plan levels will be the responsibility of the
President/CEO.

	 	•	 	Communication of Management Bonus Plan levels and the Plan to individual participants
will be the responsibility of each Corporate Executive.

	 	•	 	Team Members who are on Short-term Disability or a Leave of Absence on the last day of
the plan year (not actively at work) will receive a pro-rated Management Bonus Plan payment
upon their return to active full time work. Team Members who do not return to
active full time work will not receive a Management Bonus Plan payment without approval of
the Compensation Committee.

	 	•	 	In the event of a newly hired, promoted or transferred Team Member, the Corporate
Executive must complete a Participation Worksheet, sign it and have it approved by the
President/CEO in order to finalize participation.

	 	•	 	Team Members who are promoted from one position to another may be eligible to have their
Management Bonus opportunity increased. A Participation Worksheet must be completed to
effect a change in categories. For purposes of calculating the payout, the higher
percentage will be given to the Team Member for the entire plan year.

	 	•	 	Team Members who are employed by R.G. Barry at the close of the plan year under the
terms of the severance agreement will not be eligible to receive a payout unless
expressly stated in the terms of the agreement, and approved by the President/CEO.

	 	•	 	Team Members who separate from R. G. Barry during a plan year for reasons of death or
Long Term Disability will not be eligible to receive a Management Bonus Plan
payment, unless approved by the Compensation Committee.

 

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