Document:

Exhibit 10.13

 

AMENDMENT NO. 1 dated as of October 6, 2005 (this “Amendment”), to the Credit Agreement dated
as of October 6, 2005 (the “Credit
Agreement”), among THE NEIMAN MARCUS GROUP, INC., a Delaware
corporation (the “Borrower”),
NEWTON ACQUISTION, INC., a Delaware corporation (“Holdings”), each subsidiary of the Borrower from time to
time party thereto, the Lenders (as defined in Article I of the Credit
Agreement), and CREDIT SUISSE, as administrative agent (in such capacity, the “Administrative Agent”) and as collateral
agent for the Lenders.

 

A.            Pursuant
to the Credit Agreement, the Lenders have made loans to the Borrower.

 

B.            The
Borrower and the Lenders have agreed to amend the Credit Agreement as set forth
herein.

 

C.            Capitalized
terms used but not defined herein shall have the meanings assigned to them in
the Credit Agreement.

 

Accordingly,
in consideration of the mutual agreements herein contained and other good and
valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, the parties hereto agree as follows:

 

SECTION 1.  Amendment.  (a) The definition of the term “Eligible
Assignee” set forth in Section 1.01 of the Credit Agreement is hereby
amended by deleting the amount “$1,000,000,000” set forth therein and substituting
therefor the amount “$100,000,000”.

 

SECTION 2.  Effectiveness.  This Amendment shall become effective as of
the date set forth above on the date on which the Administrative Agent shall
have received counterparts of this Amendment that, when taken together, bear
the signatures of the Borrower and the Required Lenders.

 

SECTION 3.  Counterparts.  This Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same contract.  Delivery of an executed counterpart of a
signature page of this Amendment by facsimile transmission shall be as
effective as delivery of a manually executed counterpart hereof.

 

SECTION 4.  Applicable
Law.  THIS AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.

 

SECTION 5.  Headings.  The headings of this Amendment are for
purposes of reference only and shall not limit or otherwise affect the meaning
hereof.

 

 

IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be duly executed by
their duly authorized officers, all as of the date and year first above
written.

 

 

	
   

  	
  THE NEIMAN MARCUS GROUP, INC.,

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/ Nelson A. Bangs

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Nelson A.
  Bangs

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President and

  General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE, CAYMAN ISLANDS

  BRANCH, individually constituting the

  Required Lenders and as Administrative

  Agent,

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/ Robert Hetu

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert Hetu

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/ Cassandra Droogan

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Cassandra
  Droogan

  
	
   

  	
   

  	
  Title:

  	
  AssociateEXHIBIT 10.1

 

EMPLOYMENT
AGREEMENT dated as of October 31, 2005 (the “Agreement”), between HARDINGE INC., a New York corporation (the “Company”)
and CHARLES R. TREGO, JR. (the “Executive”).

 

WHEREAS, the
Executive is employed by the Company effective October 31, 2005; and

 

WHEREAS, the
Company desires to engage the Executive to provide services pursuant to the
terms of this Agreement;

 

NOW,
THEREFORE, in consideration of the covenants and agreements hereinafter set
forth, the parties hereto agree as follows:

 

1.     EFFECTIVENESS OF AGREEMENT
AND EFFECTIVE DATE

 

This Agreement
shall become effective as of the date hereof. 
For purposes of this Agreement, the term “Effective Date” shall mean October 31,
2005.

 

2.     EMPLOYMENT AND DUTIES

 

2.1      General.  The Company hereby employs the Executive, and
the Executive agrees to serve as Senior Vice President and Chief Financial
Officer, upon the terms and conditions herein contained.  The Executive shall perform such duties and
services for the Company as may be designated from time to time by the Board of
Directors of the Company (the “Board”) or the Chief Executive Officer of
the Company.  The Executive agrees to
serve the Company faithfully and to the best of his ability under the direction
of the Board and the Chief Executive Officer of the Company.

 

2.2      Exclusive Services.  Except as may otherwise be approved in
advance by the Board or the Chief Executive Officer of the Company, and except
during vacation periods and reasonable periods of absence due to sickness,
personal injury or other disability, the Executive shall devote his full
working time throughout the Employment Term (as defined in Section 2.3) to
the services required of him hereunder. 
The Executive shall render his services exclusively to the Company
during the Employment Term, and shall use his best efforts, judgment and energy
to improve and advance the business and interests of the Company in a manner
consistent with the duties of his position.

 

2.3      Term of Employment.  The Executive’s employment under this
Agreement shall commence as of the date hereof and shall terminate on the
earlier of (i) the second anniversary of

 

 

the Effective Date or (ii) termination
of the Executive’s employment pursuant to this Agreement; provided, however,
that the term of the Executive’s employment shall be automatically extended
without further action of either party for additional one year periods unless
written notice of either party’s intention not to extend has been given to the
other party hereto at least 60 days prior to the expiration of the then
effective term.  The period commencing as
of the Effective Date and ending on the second anniversary of the Effective
Date or such later date to which the term of the Executive’s employment shall
have been extended is hereinafter referred to as the “Employment Term”.  Notwithstanding the foregoing, in the event
of a Change in Control (as defined in Section 5.5) occurring during the
Employment Term, the Employment Term shall be extended so that it terminates on
the second anniversary of the date of the Change in Control.

 

2.4      Reimbursement of Expenses.  Unless otherwise agreed to by the Executive
and the Company, the Company shall reimburse the Executive for reasonable
travel and other business expenses incurred by him in the fulfillment of his
duties hereunder upon presentation by the Executive of an itemized account of
such expenditures, in accordance with Company practices consistently applied.

 

3.     ANNUAL COMPENSATION

 

3.1      Base Salary.  From the Effective Date, the Executive shall
be entitled to receive a base salary (“Base Salary”) at a rate of
$231,600 per annum, payable in accordance with the Company’s payroll practices,
with such changes as may be provided in accordance with the terms hereof.  Once changed, such amount shall constitute
the Executive’s annual Base Salary.

 

3.2      Annual Review.  The Executive’s Base Salary shall be reviewed
by the Board, based upon the Executive’s performance, not less often than
annually.

 

3.3      Bonus.  After the Effective Date, the Executive shall
be entitled to such bonus, if any, as may be awarded to the Executive from time
to time by the Board, provided however that Executive’s cash bonus for calendar
year 2006 shall be not less than $46,320.

 

4.     EMPLOYEE BENEFITS

 

The Executive
shall, during his employment under this Agreement, be included to the extent
eligible thereunder in all

 

 

employee benefit plans,
programs or arrangements (including, without limitation, any plans, programs or
arrangements providing for retirement benefits, incentive compensation, profit
sharing, bonuses, disability benefits, health and life insurance, or vacation
and paid holidays) which shall be established by the Company for, or made
available to, its executives generally.

 

5.     TERMINATION OF EMPLOYMENT

 

5.1      Termination Without
Cause; Resignation for Good Reason.

 

5.1.1     Prior to a Change in
Control.  If, prior to the expiration
of the Employment Term, the Executive’s employment is terminated by the Company
without Cause (as defined in Section 5.3), or the Executive resigns from
his employment hereunder for Good Reason (as defined in Section 5.4.1), at
any time prior to a Change in Control, the Company shall continue to pay the
Executive the Base Salary (at the rate in effect immediately prior to such
termination) for the greater of (i) 6 months or (ii) the remainder of
the Employment Term (such period being referred to hereinafter as the “Severance
Period”), at such intervals as the same would have been paid had the
Executive remained in the active service of the Company.  In addition, the Executive shall be entitled
to continue to participate during the Severance Period in all employee welfare
benefit plans that the Company provides and continues to provide generally to
its employees, provided that the Executive is entitled to continue to
participate in such plans under the terms thereof.  The Executive shall have no further right to
receive any other compensation or benefits after such termination or
resignation of employment except as determined in accordance with the terms of
the employee benefit plans or programs of the Company.  In the event of the Executive’s death during
the Severance Period, Base Salary continuation payments under this Section 5.1.1
shall continue to be made during the remainder of the Severance Period to the
beneficiary designated in writing for this purpose by the Executive or, if no
such beneficiary is specifically designated, to the Executive’s estate.

 

If, during the
Severance Period, the Executive materially breaches his obligations under Section 8
of this Agreement, the Company may, upon written notice to the Executive,
terminate the Severance Period and cease to make any further payments or
provide any benefits described in this Section 5.1.1.

 

5.1.2     Following a Change in
Control.  If, prior to the expiration
of the Employment Term, (a) the Executive’s

 

 

employment is terminated by the
Company without Cause (as defined in Section 5.3), or the Executive
terminates his employment hereunder for Good Reason (as defined in Section 5.4.2),
at any time following a Change in Control or (b) the Executive resigns
from his employment hereunder for any reason at any time later than six months
following a Change in Control, the Company shall pay to the Executive a lump
sum cash payment equal to 1.5 times the sum of (i) his Base Salary (at the
rate in effect immediately prior to such termination or, if higher, as in
effect immediately prior to the Change in Control) and (ii) his average
annual bonus earned during the three fiscal years immediately preceding the
Change in Control.  In addition, the
Executive shall be entitled to continue to participate for a period of three
years following such termination in all employee benefit welfare plans that the
Company provides and continues to provide generally to its executive employees
(or, if the Executive is not entitled to participate in any such plan under the
terms thereof, in a comparable substitute arrangement provided by the
Company).  The Company shall reimburse
the Executive for any premiums or other expenses incurred by the Executive with
respect to his participation and that of any of his dependents in any such
employee benefit welfare plan.

 

5.2      Termination for Cause;
Resignation Without Good Reason.  If,
prior to the expiration of the Employment Term, the Executive’s employment is
terminated by the Company for Cause, or the Executive resigns from his
employment hereunder other than for Good Reason, the Executive shall (subject
to Section 5.1.2) be entitled only to payment of his Base Salary as then
in effect through and including the date of termination or resignation.  Subject to Section 5.1.2, the Executive
shall have no further right to receive any other compensation or benefits after
such termination or resignation of employment, except as determined in
accordance with the terms of the employee benefit plans or programs of the
Company.

 

5.3      Cause.  Termination for “Cause” shall mean
termination of the Executive’s employment because of:

 

(i)        any
act or omission that constitutes a material breach by the Executive of any of
his obligations under this Agreement;

 

(ii)       the
continued failure or refusal of the Executive to substantially perform the
duties reasonably required of him as an employee of the Company;

 

 

(iii)      any
willful and material violation by the Executive of any Federal or state law or
regulation applicable to the business of the Company or any of its
subsidiaries, or the Executive’s conviction of a felony, or any willful
perpetration by the Executive of a common law fraud; or

 

(iv)     any
other willful misconduct by the Executive which is materially injurious to the
financial condition or business reputation of, or is otherwise materially
injurious to, the Company or any of its subsidiaries or affiliates.

 

5.4      Good Reason.

 

5.4.1     Prior to a Change in
Control.  For purposes of this
Agreement, “Good Reason” shall mean a material breach by the Company of
any term or provision of this Agreement (without the Executive’s prior written
consent).

 

5.4.2     Following a Change in
Control.  Following a Change in
Control, for purposes of this Agreement, “Good Reason” shall also mean
(in addition to the event or condition described in Section 5.4.1), any of
the following (without the Executive’s prior written consent):

 

(i)        a
decrease in the Executive’s base rate of compensation or a failure by the
Company to pay material compensation due and payable to the Executive in
connection with his employment;

 

(ii)       a
material diminution of the responsibilities or title of the Executive with the
Company; or

 

(iii)      a
failure to continue in effect any medical, dental, accident, disability or
other material employee welfare benefit plan in which the Executive is entitled
to participate immediately prior to the Change in Control or any material
decrease in the benefits provided under any such plan (except that employee
contributions may be raised to the extent of any cost increases imposed by
third parties);

 

(iv)     the
Company’s requiring the Executive to relocate to an office or location more
than 50 miles from his principal employment location immediately prior to the
Change in Control; or

 

 

(v)      a
failure or refusal of any successor company to assume the Company’s obligations
under this Agreement.

 

5.5      Change in Control.  For purposes of this Agreement, the term “Change
in Control” shall mean and shall be deemed to occur if and when:

 

(i)        an
offeror (other than the Company) purchases shares of Common Stock of the
Company pursuant to a tender or exchange offer for such shares;

 

(ii)       any
person (as such term is used in Sections 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934, as amended), other than any employee benefit
plan of the Company or any person or entity appointed or established pursuant
to any such plan, who is not now but who shall hereafter become the beneficial
owner, directly or indirectly, of securities of the Company representing 20% or
more of the combined voting power of the Company’s then outstanding securities,
excluding any such securities held by such person as trustee or other fiduciary
of an employee benefit plan of the Company;

 

(iii)      the
membership of the Board changes as the result of a contested election or
elections, so that a majority of the individuals who are directors at any
particular time were proposed by persons other than (a) directors who were
members of the Board immediately prior to a first such contested election (“Continuing
Directors”) or (b) directors proposed by the Continuing Directors and
were initially elected to the Board as a result of such a contested election or
elections occurring within the previous two years; or

 

(iv)     the
shareholders of the Company approve a merger, consolidation, sale or
disposition of all or substantially all of the Company’s assets, or a plan of
partial or complete liquidation.

 

6.     DEATH, DISABILITY OR
RETIREMENT.

 

In the event
of termination of employment by reason of death, Permanent Disability (as
hereinafter defined) or retirement, the Executive (or his estate, as
applicable) shall be entitled to Base Salary and benefits determined under
Sections 3

 

 

and 4 through the date of
termination.  Other benefits shall be
determined in accordance with the benefit plans maintained by the Company, and
the Company shall have no further obligation hereunder.  For purposes of this Agreement, “Permanent
Disability” means a physical or mental disability or infirmity of the
Executive that prevents the normal performance of substantially all his duties
as an employee of the Company, which disability or infirmity shall exist for
any continuous period of 180 days.

 

7.     MITIGATION OF DAMAGES

 

The Executive
shall be required to mitigate the amount of any payment provided for in Section 5.1.1
by seeking other employment, and any such payment will be reduced by any
amounts which the Executive receives or is entitled to receive from another
employer with respect to the Severance Period. 
In fulfilling the requirements of this section, Executive need not
expend his full time and efforts in pursuing other employment and a good faith
and earnest pursuit of such employment shall be deemed to have fulfilled such
requirements.  The Executive shall
promptly notify the Company in writing in the event that other employment is
obtained during the Severance Period.

 

8.     NONSOLICITATION;
CONFIDENTIALITY; NONCOMPETITION

 

8.1      Nonsolicitation.  For so long as the Executive is employed by
the Company, and continuing for two years thereafter if termination of
employment occurs prior to a Change in Control, the Executive shall not,
without the prior written consent of the Company, directly or indirectly, as a
sole proprietor, member of a partnership, stockholder or investor, officer or
director of a corporation, or as an employee, associate, consultant or agent of
any person, partnership, corporation or other business organization or entity
other than the Company: (x) solicit or endeavor to entice away from the Company
or any of its subsidiaries any person or entity who is, or, during the then
most recent 12-month period, was employed by, or had served as an agent or key
consultant of the Company or any of its subsidiaries; or (y) solicit or
endeavor to entice away from the Company or any of its subsidiaries any person
or entity who is, or was within the then most recent 12-month period, a
customer or client (or reasonably anticipated to the general knowledge of the
Executive or the public to become a customer or client) of the Company or any
of its subsidiaries.

 

8.2      Confidentiality.  The Executive covenants and agrees with the
Company that he will not at any time, except in

 

 

performance of
his obligations to the Company hereunder or with the prior written consent of
the Company, directly or indirectly, disclose any secret or confidential
information that he may learn or has learned by reason of his association with
the Company or any of its subsidiaries and affiliates.  The term “confidential information”
includes information not previously disclosed to the public or to the trade by
the Company’s management, or otherwise in the public domain, with respect to
the Company’s or any of its subsidiaries’ or affiliates’ products, facilities,
applications and methods, trade secrets and other intellectual property,
systems, procedures, manuals, confidential reports, product price lists,
customer lists, technical information, financial information (including the
revenues, costs or profits associated with any of the Company’s products),
business plans, prospects or opportunities, but shall exclude any information
which (i) is or becomes available to the public or is generally known in
the industry or industries in which the Company operates other than as a result
of disclosure by the Executive in violation of his agreements under this Section 8.2
or (ii) the Executive is required to disclose under any applicable laws,
regulations or directives of any government agency, tribunal or authority
having jurisdiction in the matter or under subpoena or other process of law.

 

8.3      No Competing Employment.  For so long as the Executive is employed by
the Company, and continuing for one year thereafter if termination of employment
occurs prior to a Change in Control, the Executive shall not, directly or
indirectly, as a sole proprietor, member of a partnership, stockholder or
investor (other than a stockholder or investor owning not more than a 1%
interest), officer or director of a corporation, or as an employee, associate,
consultant or agent of any person, partnership, corporation or other business
organization or entity other than the Company, render any service to or in any
way be affiliated with a competitor (or any person or entity that is reasonably
anticipated to the general knowledge of the Executive or the public to become a
competitor) of the Company or any of its subsidiaries.

 

8.4      Exclusive Property.  The Executive confirms that all confidential
information is and shall remain the exclusive property of the Company.  All business records, papers and documents
kept or made by Executive relating to the business of the Company shall be and
remain the property of the Company, except for such papers customarily deemed to
be the personal copies of the Executive.

 

 

8.5      Injunctive Relief.  Without intending to limit the remedies
available to the Company, the Executive acknowledges that a breach of any of
the covenants contained in this Section 8 may result in material and
irreparable injury to the Company or its affiliates or subsidiaries for which
there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of such a breach or
threat thereof, the Company shall be entitled to seek a temporary restraining
order and/or a preliminary or permanent injunction restraining the Executive
from engaging in activities prohibited by this Section 8 or such other
relief as may be required specifically to enforce any of the covenants in this Section 8.  If for any reason, it is held that the
restrictions under this Section 8 are not reasonable or that consideration
therefor is inadequate, such restrictions shall be interpreted or modified to
include as much of the duration and scope identified in this Section 8 as
will render such restrictions valid and enforceable.

 

9.     ARBITRATION

 

Any dispute or
controversy arising under or in connection with this Agreement that cannot be
mutually resolved by the parties hereto shall be settled exclusively by
arbitration in New York, New York, before one arbitrator of exemplary
qualifications and stature, who shall be selected jointly by the Company and
the Executive, or, if the Company and the Executive cannot agree on the selection
of the arbitrator, shall be selected by the American Arbitration
Association.  Judgment may be entered on
the arbitrator’s award in any court having jurisdiction.  The parties hereby agree that the arbitrator
shall be empowered to enter an equitable decree mandating specific enforcement
of the terms of this Agreement.

 

10.   CERTAIN PAYMENTS

 

Notwithstanding
anything in this Agreement to the contrary, if any amounts due to the Executive
under this Agreement and any other plan or program of the Company constitute a “parachute
payment” (as defined in Section 280G(b)(2) of the Internal Revenue
Code of 1986, as amended (the “Code”)), then the aggregate of the
amounts constituting the parachute payment shall be reduced to an amount that
will equal three times his “base amount” (as defined in Section 280G(b)(3) of
the Code) less $1.00.  The determination
to be made with respect to this Section 10 shall be made by an accounting
firm jointly selected by the Company and the Executive and paid by the Company,
and which may be the Company’s independent auditors.

 

 

11.   MISCELLANEOUS

 

11.1    Notices.  All notices or communications hereunder shall
be in writing, addressed as follows:

 

To the
Company:

 

Hardinge Inc.

One Hardinge
Drive

Elmira, New
York 14902-1507

Telecopier No. (607)
734-2353

Attention: Mr. J.
Patrick Ervin

 

To the
Executive:

 

Charles R.
Trego, Jr.

8 Avallon Way

Altamont, NY
12009

 

With a copy
to:

 

Nicholas P.
Amigone, III, Esq.

Amigone,
Sanchez, Mattrey & Marshall, LLP

1300 Main
Place Tower

350 Main
Street

Buffalo, NY
14202

 

All such notices shall be
conclusively deemed to be received and shall be effective, (i) if sent by
hand delivery, upon receipt, (ii) if sent by telecopy or facsimile
transmission, upon confirmation of receipt by the sender of such transmission,
or (iii) if sent by registered or certified mail, on the fifth day after
the day on which such notice is mailed.

 

11.2    Severability.  Each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement is held to be prohibited by or invalid
under applicable law, such provision will be ineffective only to the extent of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

 

 

11.3    Assignment.  The rights and obligations of this Agreement
shall bind and inure to the benefit of any successor of the Company by
reorganization, merger or consolidation, or any assignee of all or
substantially all of the Company’s business and properties.  Neither this Agreement nor any rights
hereunder shall be assignable or otherwise subject to hypothecation by the
Executive.

 

11.4    Entire Agreement.  This Agreement represents the entire
agreement of the parties and shall supersede any and all previous contracts,
arrangements or understandings between the Company and the Executive relating
to the subject matter hereof.  This
Agreement may be amended at any time by mutual written agreement of the parties
hereto.

 

11.5    Withholding.  The payment of any amount pursuant to this
Agreement shall be subject to applicable withholding and payroll taxes, and
such other deductions as may be required under the Company’s employee benefit
plans, if any.

 

11.6    Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York applicable
to contracts executed in and to be performed entirely within that state.

 

IN WITNESS
WHEREOF, the Company has caused this Agreement to be duly executed and the
Executive has hereunto set his hand, as of the day and year first above
written.

 

 

	
   

  	
  HARDINGE
  INC.

  
	
   

  	
   

  
	
  October 7,
  2005

  	
   

  	
  By 

  	
  /S/ J.
  PATRICK ERVIN

  	
   

  
	
   

  	
  Name:

  	
  J. Patrick
  Ervin

  
	
   

  	
  Title:

  	
  Chairman of
  the Board,

  
	
   

  	
   

  	
   

  	
  President
  and

  
	
   

  	
   

  	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  October 7,
  2005

  	
   

  	
  /S/ CHARLES
  R.TREGO,JR.

  	
   

  
	
   

  	
  Charles R.
  Trego, Jr.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]