Document:

Warrant Agreement

 EXHIBIT 10.12 
  
 WARRANT AGREEMENT 
  
 This WARRANT AGREEMENT (the “Agreement”) is dated as of May 3, 2000, by and among the purchasers set forth on Schedule I hereto
(collectively, the “Purchasers”), and Broder Bros., Co., a Michigan corporation (the “Company”). Capitalized terms used herein and not otherwise defined shall have the meanings given to such terms in Section 5A
hereof. 
  
 WHEREAS, on the date hereof, pursuant to that certain
Senior Subordinated Loan Agreement dated as of the date hereof (the “Subordinated Loan Agreement”), by and among the Purchasers and the Company, the Purchasers are purchasing notes of the Company in the aggregate principal amount of
$10,000,000 (the “Notes”). 
  
 WHEREAS, the
Purchasers are acquiring from the Company warrants in the form attached as Exhibit I hereto (the “Warrants”), representing the right to purchase from the Company, Warrant Shares on the terms and conditions set forth in the
Warrants, in the amounts set forth beside each Purchaser’s name on Schedule I attached hereto. 
  
 WHEREAS, the Warrants are being issued as an inducement and partial consideration for the Purchasers to enter into the Subordinated Loan Agreement and to
purchase the Notes. 
  
 NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 SECTION 1. Closing. 
  
 1A. Closing. The closing of the issuance of the Warrants to the Purchasers (the “Closing”) shall take place
simultaneously with the closing pursuant to the Subordinated Loan Agreement. The date of such Closing is hereinafter referred to as the “Closing Date.” 
  
 1B. Transactions on Closing Date. At the Closing, the Company shall deliver to the Purchasers the
duly issued Warrants. 
  
 SECTION 2. Representations and
Warranties of the Company. The Company represents and warrants to the Purchasers as follows: 
  
 2A. Good Standing. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State
of Michigan. 
  
 2B. Authority Relative to
this Agreement. The Company has all requisite corporate power and authority to enter into and perform this Agreement and to issue and deliver the Warrants to the Purchasers. The execution, delivery and performance by the Company of this
Agreement, including the issuance and delivery of the Warrants to the Purchasers, have been duly authorized by all necessary corporate action on the part of the Company. This Agreement has been 

  

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duly executed and delivered by the Company and is a legal, valid and binding obligation of the Company and is enforceable against the Company in accordance
with its terms. 
  
 2C. No Conflict or
Violation. The execution and delivery of this Agreement by the Company, the performance by the Company of its terms and the issuance and delivery of the Warrants to the Purchasers will not on the Closing Date conflict with or result in a
violation of (i) the charter or bylaws of the Company as in effect on the Closing Date or (ii) any agreement, instrument, law, rule, regulation, order, writ, judgment or decree to which the Company is a party or is subject, except for such conflicts
and violations which will not, in the aggregate, have a material adverse effect on the business, operations, assets or condition (financial or otherwise) of the Company and will not deprive the Purchasers of any material benefit under this
Agreement. 
  
 2D. Validity of Issuance.
The Warrants to be issued to the Purchasers pursuant to this Agreement and the Warrant Shares issued upon exercise of the Warrants will, when issued, be duly and validly issued, fully paid and non-assessable (assuming in the case of the Warrant
Shares, payment of the exercise price is made in accordance with the terms of the Warrants). 
  
 2E. Capital Structure. As of the Closing and immediately thereafter, the authorized capital stock of the Company consists of (i)
27,000,000 Class A Common Shares, par value $0.01 per share (the “Class A Common”), of which 9,000,000 shares shall be issued and outstanding as of the Closing and an additional 1,100,000 shares shall be reserved for issuance to
employees of the Company or its subsidiaries and (ii) 3,000,000 Class L Common Shares, par value $0.01 per share (the “Class L Common”), of which 1,000,000 shares shall be issued and outstanding as of the Closing. 
  
 SECTION 3. Representations and Warranties of the Purchasers. The
Purchasers each hereby represent and warrant, severally and not jointly, to the Company as follows: 
  
 3A. Investment Intention. Each Purchaser is acquiring its Warrant, and if the Warrant is exercised, the Warrant Shares, for
investment solely for its own account and not with a view to, or for resale in connection with, the distribution or other disposition thereof. Such Purchaser agrees and acknowledges that it will not, directly or indirectly, offer, transfer or sell
its Warrant or any Warrant Shares, or solicit any offers to purchase or acquire the Warrant or any Warrant Shares, unless the transfer or sale is (i) pursuant to an effective registration statement under the Securities Act of 1933, as amended, and
the rules and regulations thereunder (the “Securities Act”) and has been registered under any applicable state securities or “blue sky” laws or (ii) pursuant to an exemption from registration under the Securities Act and
applicable state securities or “blue sky” laws. 
  
 3B. Legends. Each Purchaser acknowledges that each Warrant and each Warrant Share will contain a legend substantially to the following effect: 
  
 THIS WARRANT AND ANY SHARES OF STOCK PURCHASABLE UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE’S 

  

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SECURITIES LAWS AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT OR PURSUANT
TO AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY, EXPLAINING AN EXEMPTION FROM SUCH REGISTRATION. 
  
 Upon reasonable request of the Company, in connection with any transfer of the Warrant or the Warrant Shares (other than a transfer pursuant to a public
offering registered under the Securities Act, pursuant to Rule 144 or Rule 144A promulgated under the Securities Act (or any similar rules then in effect) or to an affiliate of the Purchasers), the applicable Purchasers will deliver, if requested by
the Company, an opinion of counsel knowledgeable in securities laws reasonably satisfactory to the Company to the effect that such transfer may be effected without registration under the Securities Act. The Company agrees to issue certificates
evidencing the Warrant Shares that do not contain such legend upon receipt of an opinion of counsel, which opinion and counsel shall be reasonably satisfactory to the Company, to the effect that such legend no longer applies to the Warrant Shares.

  
 In addition, each certificate evidencing Warrants and each
certificate issued in exchange for or upon the transfer of any Warrants (if such shares remain Shareholder Shares (as defined in the Shareholders Agreement) after such transfer) shall be stamped or otherwise imprinted with a legend in substantially
the following form: 
  
 THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO CERTAIN TRANSFER AND VOTING RESTRICTIONS PURSUANT TO A SHAREHOLDERS AGREEMENT DATED AS OF MAY 3, 2000, AMONG THE ISSUER OF SUCH SECURITIES (THE “COMPANY”) AND CERTAIN OF THE COMPANY’S STOCKHOLDERS. A COPY OF
SUCH SHAREHOLDERS AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST. 
  
 The Company shall imprint such legend on certificates evidencing Shareholder Shares (as defined in the Shareholders Agreement). The legend set forth above shall be
removed from the certificates evidencing any shares which cease to be Shareholder Shares (as defined in the Shareholders Agreement) in accordance with the Shareholders Agreement. 
  
 3C. Additional Investment Representations. Each Purchaser has such knowledge and experience in
financial and business matters so as to be capable of evaluating the merits and risks of such investment, is able to incur a complete loss of such investment and to bear the economic risk of such investment for an indefinite period of time. Each of
the Purchasers are “accredited investors” as that term is defined in Regulation D under the Securities Act. 
  
 SECTION 4. Inspection Rights. So long as the Purchasers own at least 50% of the Warrant Shares issued on the date hereof (assuming, for purposes of
this Section 4, full exercise of the Warrants), the Company shall permit one representative selected by the holders of the majority of the Warrant Shares issued on the date hereof (assuming for purposes of this section that the Warrants 

  

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have been fully exercised), upon reasonable notice and during normal business hours and such other times as any such holder may reasonably request, to (i)
visit and inspect any of the properties of the Company and its subsidiaries, (ii) examine the corporate and financial records of the Company and its subsidiaries and make copies thereof or extracts therefrom and (iii) discuss the affairs, finances
and accounts of any such corporations with the directors, officers, key employees and independent accountants of the Company and its subsidiaries (it being understood that such representative will keep all non-public information confidential).

  
 SECTION 5. Miscellaneous 
  
 5A. Definitions. For the purposes of this Agreement,
the following terms shall have the following meanings: 
  
 “Agreement” has the meaning given to such term in the recitals of this Agreement. 
  
 “Class A Common” has the meaning given to such term in Section 2E of the Agreement. 
  
 “Class L Common” has the meaning given to
such term in Section 2E of the Agreement. 
  
 “Closing” has the meaning given to such term in Section 1A of the Agreement.  
  
 “Closing Date” has the meaning given to such term in Section 1A of the Agreement. 
  
 “Common Shares” means collectively, the
Class A Common and the Class L Common, or any securities into which such Common Shares are hereafter converted or exchanged. 
  
 “Company” has the meaning given to such term in the recitals of this Agreement. 
  
 “Notes” has the meaning given to such term
in the recitals of this Agreement. 
  
 “Purchasers” has the meaning given to such term in the recitals of this Agreement. 
  
 “Securities Act” has the meaning given to such term in Section 3A of this Agreement. 
  
 “Shareholders Agreement” shall mean that
certain Shareholders Agreement dated as of the date hereof by and among the Company and each person listed on the schedules attached thereto, as the same may be amended, modified or restated from time to time. 
  
 “Subordinated Loan Agreement” has the
meaning given to such term in the recitals of this Agreement. 
  
 “Warrants” has the meaning given to such term in the recitals of this Agreement. 
  

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 “Warrant Shares” means the Common Shares obtained or obtainable upon
exercise of the Warrants; provided, that, if there is a change such that the securities issuable upon exercise of the Warrants are issued by an entity other than the Company or there is a change in the class of securities so issuable,
then the term “Warrant Shares” shall mean shares of the security issuable upon exercise of the Warrants if such security is issuable in shares, or shall mean the equivalent units in which such security is issuable if such security is not
issuable in shares. 
  
 5B. Notices. All
notices and other communications provided for herein shall be dated and in writing and shall be deemed to have been duly given (i) when delivered, if delivered personally, sent by registered or certified mail, return receipt requested and postage
prepaid, or sent via nationally recognized overnight courier or via facsimile with confirmation of receipt and (ii) when received if delivered otherwise, to the party to whom it is directed: 
  
 If to the Company: 
  
 Broder Bros., Co. 
 c/o Bain Capital, Inc., 
 Two Copley Place 
 Boston, Massachusetts 02166 
 Attention:         Edward Conard 
                          Thomas Morgan 
 Facsimile No.: (617) 572-3274 
  
 with a copy to: 
  
 Kirkland & Ellis 
 200 East Randolph Drive 
 Chicago, Illinois 60601 
 Attention:         Jeffrey C. Hammes, P.C. 
                          David A. Breach 
 Facsimile No.: (312) 861-2200 
  
 If to a Purchaser: 
  
 The address set forth for such Purchaser on Schedule I 
  
 or to such other address as either party hereto shall have specified by notice in writing to the others. 
  
 5C. Assignment. This Agreement and all the provisions
hereof shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns, except that neither this Agreement nor any rights or obligations hereunder shall be assigned by the Company
without the prior written consent of the Purchasers. 
  
 5D. Amendment. This Agreement may be amended only by a written instrument signed by the Company and the Purchasers holding a majority of the Warrant Shares. 
  

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 5E. Waiver. Any party hereto may (a) extend the time for the performance of any of
the obligations or other acts of the other party hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto and (c) waive compliance with any of the agreements or conditions
herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid as to such party if set forth in an instrument in writing signed by such party. 
  
 5F. Severability. In the event that any one or more of the provisions hereof, or the application
thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any
way impaired, it being intended that all rights, powers and privileges of the parties hereto shall be enforceable to the fullest extent permitted by law. 
  
 5G. Applicable Law. This Agreement shall be governed by, and shall be construed and enforced in accordance with, the laws of the
State of New York without regard to the principles of conflicts of laws. 
  
 5H. Counterparts. This Agreement may be executed in two or more counterparts (including by means of telecopied signature pages), each of which when so executed and delivered shall be deemed to be an original
and all of which together shall be deemed to be one and the same agreement. 
  
 5I. Descriptive Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning of the terms contained herein. 
  
 5J. Purchase Price for Warrants. The aggregate
purchase price to each Purchaser for the Warrants purchased by it hereunder is the amount set forth opposite such Purchaser’s name on Schedule I hereto. The Company and the Purchasers agree that, for purposes of Sections 1271 through
1275 of the Code (as defined in the Subordinated Loan Agreement), the aggregate original purchase price of the Warrants is as set forth on Schedule I and such price will be appropriately used by the Company and each Purchaser for financial reporting
and income tax purposes. 
  
 *    *    *    *    * 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Warrant Agreement to be
signed and attested by its duly authorized officers, dated as of the date first written above. 
  

	BRODER BROS., CO.
		
	By:	 	/s/ Todd Turkin
	 	

	 Its:
	 	 
	 	

  

	PURCHASERS:

  

	BAIN CAPITAL FUND VI, L.P.
		
	By:	 	Bain Capital Partners VI, L.P.
	 Its:
	 	 General Partner

  

		
	By:	 	Bain Capital Investors VI, Inc.
	 Its:
	 	 General Partner

  

		
	By:	 	/s/ ILLEGIBLE
	 	

	 	 	A Managing Director

  

	BCIP ASSOCIATES II
	
	BCIP ASSOCIATES II-B
	
	BCIP ASSOCIATES II-C
	
	BCIP TRUST ASSOCIATES II
	
	BCIP TRUST ASSOCIATES II-B

  

		
	By:	 	Bain Capital, Inc.
	 Its:
	 	 Managing Partner

  

		
	By:	 	/s/ ILLEGIBLE
	 	

	 	 	A Managing Director

  

	PEP INVESTMENTS PTY. LIMITED
		
	By:	 	Bain Capital, Inc.
	 Its:
	 	 Attorney-in-Fact

  

		
	By:	 	/s/ ILLEGIBLE
	 	

	 	 	A Managing Director

  
 [SIGNATURE
PAGE TO WARRANT AGREEMENT] 

	RANDOLPH STREET PARTNERS II 
		
	By:	 	/s/ ILLEGIBLE
	 	

	 	 	A General Partner
	
	HAROLD BRODE, TRUSTEE OF THE HAROLD BRODE LIVING REVOCABLE TRUST, DATED JUNE 15, 1982, AS AMENDED

  

		
	By:	 	/s/ Harold Brode
	 	

		
	 Its:
	 	 
	 	

  

	MICHAEL T. BRODE, TRUSTEE OF THE MICHAEL T. BRODE LIVING REVOCABLE TRUST DATED JUNE 15, 1982, AS AMENDED

  

		
	By:	 	/s/ Michael T. Brode
	 	

		
	 Its:
	 	 TRUSTEE

  

	HOWARD N. MOROF, TRUSTEE OF THE MICHAEL T. BRODE IRREVOCABLE ELECTING SMALL BUSINESS TRUST AGREEMENT

  

		
	By:	 	/s/ Howard N. Morof
	 	

		
	 Its:
	 	 
	 	

  
 [SIGNATURE
PAGE TO WARRANT AGREEMENT] 

	HOWARD N. MOROF, TRUSTEE OF THE HOWARD N. MOROF REVOCABLE LIVING TRUST DATED AUGUST 7, 1992, AS AMENDED

  

		
	By:	 	/s/ Howard N. Morof
	 	

		
	 Its:
	 	 
	 	

  

		
	 	 	/s/ Todd Turkin
	 	

	 	 	 Todd Turkin

  

		
	 	 	/s/ Vince Tyra
	 	

	 	 	 Vince Tyra

  
 [SIGNATURE
PAGE TO WARRANT AGREEMENT] 

 SCHEDULE I 
  
 PURCHASERS 
  

	 Name and Address for Notices

	  	Number of
Class L Common
Warrant Shares

	  	Number of
Class A Common
Warrant Shares

	  	Aggregate
Purchase Price

				
	 Bain Capital Fund VI, L.P.
 Bain Capital, Inc.
 Two Copley Place
 Boston, MA 02166
	  	66,062	  	630,890	  	$	14,863.90
				
	 BCIP Associates II
 Bain Capital, Inc.
 Two Copley Place
 Boston, MA 02166
	  	6,711	  	64,095	  	$	1,510.09
				
	 BCIP Associates II-B
 Bain Capital, Inc.
 Two Copley Place
 Boston, MA 02166
	  	2,184	  	20,853	  	$	491.30
				
	 BCIP Associates II-C
 Bain Capital, Inc.
 Two Copley Place
 Boston, MA 02166
	  	1,071	  	10,230	  	$	241.02
				
	 BCIP Trust Associates II
 Bain Capital, Inc.
 Two Copley Place
 Boston, MA 02166
	  	9,008	  	86,021	  	$	2,026.67
				
	 BCIP Trust Associates II-B
 Bain Capital, Inc.
 Two Copley Place
 Boston, MA 02166
	  	2,544	  	24,298	  	$	572.47
				
	 PEP Investments Pty. Limited
 Bain Capital, Inc.
 Two Copley Place
 Boston, MA 02166
	  	220	  	2,103	  	$	49.55
				
	 Randolph Street Partners II
 Kirkland & Ellis
 200 East Randolph Street
 Chicago, IL 60601
	  	887	  	8,470	  	$	199.55

				
	 Michael T. Brode, Trustee of the
 Michael T.
Brode Revocable
 Living Trust dated September 13, 1994
 138 C
& O Club Drive
 Charlevoix, MI 49720
	  	4,848	  	46,303	  	$1,090.91
				
	 Harold Brode, Trustee of the
 Harold Brode
Living Revocable
 Trust dated June 15, 1982, as
 amended
17131
Mandylynn Ct.
 Boca Raton, FL 33496
	  	2,020	  	19,293	  	$454.55
				
	 Howard N. Morof, Trustee of the
 Michael T.
Brode Irrevocable
 Electing Small Business Trust Agreement
	  	6,869	  	65,595	  	$1,545.43
				
	 Howard N. Morof, Trustee of the
 Howard N.
Morof Revocable
 Living Trust dated August 7, 1992,
 as
amended
	  	607	  	5,788	  	$136.37
				
	Todd Turkin	  	4,040	  	38,586	  	$909.09
				
	 Vince Tyra
 c/o Broder Bros., Co.

45555 Port Street
 Plymouth, MI 48170
	  	4,040	  	38,586	  	$909.09
	 	  	
	  	
	  	

				
	 Total
	  	111,111	  	1,061,111	  	$25,000
	 	  	
	  	
	  	

  
 [SIGNATURE PAGE TO
WARRANT AGREEMENT] 
  

 S-5Securities Purchase Agreement

 EXHIBIT 10.13 
  
 SECURITIES PURCHASE AGREEMENT 
  
 THIS SECURITIES PURCHASE AGREEMENT, dated as of September 22, 2003 (this “Agreement”), is made by and among
Broder Bros., Co., a Michigan corporation (the “Company”) and the Persons set forth on the “Schedule of Purchasers” attached hereto (hereinafter referred to collectively as the “Purchasers” and
individually as a “Purchaser”). The Purchasers will purchase, severally and not jointly, the number of shares of stock and warrants listed on the Schedule of Purchasers attached hereto. Except as otherwise indicated,
capitalized terms used herein are defined in Section 6 hereof. 
  
 WHEREAS, pursuant to that certain Stock Purchase Agreement, dated as of July 12, 2003, as amended (the “Stock Purchase Agreement”), by and among the Company, FNL Management Corp., as Sellers’ Representative, and the
stockholders and optionholders of Alpha Shirt Holdings, Inc., a Delaware corporation (“Alpha”), the Company purchased all of the issued and outstanding shares of capital stock of Alpha (the “Stock Purchase”); and

  
 WHEREAS, this Agreement is executed and the transactions
contemplated hereby are consummated simultaneously with the Stock Purchase. 
  
 NOW THEREFORE, the parties hereto agree as follows: 
  
 Section 1. Authorization of Issuance and Sale of Securities. 
  
 1A. Issuance of Securities. The Company shall (prior to Closing, as defined below) authorize the issuance and sale to the Purchasers of:

  
 (i) The number of shares of its Class B Common Stock, par
value $.01 per share (the “Class B Common”), Class L Common Stock, Series 3, par value $.01 per share (the “Class L-3 Common”) and Class L Common Stock, Series 4, par value $.01 per share (the “Class L-4
Common” and together with the Class B Common and the Class L-3 Common, collectively referred to as the “Common Stock”), each having the rights and preferences set forth in the Amended and Restated Articles of Incorporation
(the “Articles of Incorporation”) attached as Exhibit A hereto, set forth opposite such Purchaser’s name on the Schedule of Purchasers; and 
  
 (ii) The number of warrants to subscribe for and purchase shares of Class L-3 Common (the “L-3 Warrants”),
set forth opposite such Purchaser’s name on the Schedule of Purchasers, each such L-3 Warrant subject to the terms and conditions set forth in the Form of Warrant attached as Exhibit B hereto. 
  
 The L-3 Warrants and the Common Stock issued by the Company to the Purchasers
hereunder are collectively referred to herein as the “Securities”. 
  
 Section 2. Purchase and Sale of Securities. 
  
 2A. Purchase and Sale. On the basis of the representations, warranties, covenants and agreements set forth herein, but subject to the terms and conditions set forth herein, at the Closing the Company shall sell
to each Purchaser and each Purchaser shall purchase from the Company, the number of shares of Common Stock and L-3 Warrants set forth 

  

 
opposite such Purchaser’s name on the Schedule of Purchasers, for the aggregate purchase price for each such Purchaser as set forth therein. The
sale of the Securities to each Purchaser shall constitute a separate sale hereunder and the obligations of each Purchaser hereunder shall be several rather than joint. 
  
 2B. The Closing. The closing of each separate sale and purchase of the Securities (the “Closing”)
shall take place at the offices of Kirkland & Ellis LLP, 200 East Randolph Drive, Chicago, IL 60601, on September         , 2003, or at such other place or on such other date as may be mutually
agreeable to the Purchasers and the Company. At the Closing, the Company shall deliver to each Purchaser a certificate or certificates evidencing the number of shares of each class of Common Stock and L-3 Warrants to be purchased by such Purchaser,
registered in such name as such Purchaser shall designate, against payment of the purchase price therefor by wire transfer of immediately available funds to a bank account designated by the Company. 
  
 Section 3. Restrictions on Transfers. 
  
 3A. Restrictions. Restricted Securities are only transferable pursuant
to (i) public offerings registered under the Securities Act, (ii) Rule 144 or Rule 144A of the Securities and Exchange Commission (or any similar rules then in force) if such rules are available, and (iii) subject to the conditions specified in
Section 3B below, any other legally available means of transfer pursuant to the Securities Act. 
  
 3B. Procedure for Transfer. In connection with the transfer of any Restricted Securities (other than a transfer referred to in clauses (i) or (ii)
of Section 3A above), the holder thereof will deliver written notice to the Company describing in reasonable detail the transfer or proposed transfer, together with an opinion of Kirkland & Ellis LLP or other counsel which (to the
Company’s reasonable satisfaction) is knowledgeable in securities law matters to the effect that such transfer of Restricted Securities may be effected without registration of such Restricted Securities under the Securities Act. In addition, if
the holder of such Restricted Securities delivers to the Company an opinion of such counsel that no subsequent transfer of such Restricted Securities will require registration under the Securities Act, the Company will promptly upon such
contemplated transfer deliver new certificates for such Restricted Securities which do not bear the Securities Act Legend set forth in Section 3D below. If the Company is not required to deliver new certificates for such Restricted Securities
not bearing such Securities Act Legend, the holder thereof will not transfer the same until the prospective transferee has confirmed to the Company in writing its agreement to be bound by the conditions contained in this Section and Section
3D. 
  
 3C. Transferees. Upon request of any Purchaser,
the Company shall promptly supply to such Purchaser or its prospective transferees all information required to be delivered in connection with a transfer pursuant to Rule 144A of the Securities and Exchange Commission. 
  

 3D. Legend. Each certificate for Restricted Securities shall be imprinted with a legend in
substantially the following form (the “Securities Act Legend”): 
  
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED ON SEPTEMBER          2003 AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”). THE TRANSFER OF SUCH SECURITIES IS SUBJECT TO THE CONDITIONS SPECIFIED IN THE SECURITIES PURCHASE AGREEMENT, DATED AS OF SEPTEMBER          2003, BETWEEN
THE ISSUER (THE “COMPANY”) AND CERTAIN INVESTORS, AND THE COMPANY RESERVES THE RIGHT TO REFUSE TO TRANSFER SUCH SECURITIES UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED WITH RESPECT TO SUCH TRANSFER. UPON WRITTEN REQUEST, A COPY OF SUCH
CONDITIONS WILL BE FURNISHED BY THE COMPANY TO THE HOLDER HEREOF WITHOUT CHARGE.” 
  
 In addition, to the extent applicable, each certificate evidencing the Securities issued hereunder and each certificate issued in exchange for or upon the transfer of any of the Securities (if such Securities remain
“Shareholder Shares” (as defined in the Company’s Amended and Restated Shareholders Agreement, dated as of the date hereof (the “Shareholders Agreement”)) after such transfer) shall be stamped or otherwise imprinted
with a legend in substantially the following form: 
  
 “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN TRANSFER AND VOTING RESTRICTIONS PURSUANT TO THE AMENDED AND RESTATED SHAREHOLDERS AGREEMENT DATED AS OF SEPTEMBER         , 2003, AMONG
THE ISSUER OF SUCH SECURITIES (THE “COMPANY”) AND CERTAIN OF THE COMPANY’S STOCKHOLDERS. A COPY OF SUCH SHAREHOLDERS AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.”

  
 3E. Legend Removal. 
  
 (i) Whenever any of the Restricted Securities cease to be Restricted
Securities and are not otherwise Restricted Securities, the holder thereof shall be entitled to receive from the Company, without expense, upon surrender to the Company of the certificate representing such securities, a new certificate representing
such Securities of like tenor but not bearing a legend of the character set forth above. 
  
 (ii) The Transferability Legend set forth above shall be removed from the certificates evidencing any shares which cease to be Shareholder Shares in accordance with the Shareholders Agreement. 
  

 Section 4. Representations and Warranties of the Company. The Company hereby represents and
warrants to the Purchasers that as of the Closing: 
  
 4A.
Organization. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Michigan, and is qualified (or shortly after the Closing will be qualified) to do business in every jurisdiction
in which the nature of its business requires it to be so qualified. The Company has delivered to the Purchasers true and complete copies of its Articles of Incorporation as in effect on the date hereof. 
  
 4B. Capital Stock and Related Matters. 
  
 (i) As of the Closing: 
  
 (A) The authorized capital stock of the Company will consist
of 62,000,000 shares, consisting of: 
  
 (1)
15,000,000 of Class A Common Shares, par value $.01 per share (“Class A Common”); 
  
 (2) 35,000,000 of Class B Common Shares, par value $.01 per share (“Class B Common”); and 
  
 (3) 12,000,000 of Class L Common Shares, par value $.01 per
share (“Class L Common”), consisting of 2,000,000 of Class L Common, Series 1; 2,000,000 of Class L Common, Series 2; 4,000,000 of Class L Common, Series 3; and 4,000,000 of Class L Common, Series 4. 
  
 (B) The Company will have issued, and there will be
outstanding 10,311,111 shares of Class A Common, 25,282,963 shares of Class B Common, 1,000,000 shares of Class L Common, Series 1, 966,791 shares of Class L, Series 2, 2,452,012 shares of Class L, Series 3, and 2,370,584 shares of Class L, Series
4; and 
  
 (C) The Company will have issued and
outstanding 111,111 warrants to purchase shares of Class L Common, Series 1 and 272,445 L-3 Warrants. 
  
 (ii) As of the Closing, all of the outstanding shares of the Company’s capital stock will have been duly authorized, and upon payment therefor will
be validly issued, fully paid and nonassessable. 
  
 4C.
Authorization; No Breach. The execution, delivery and performance of this Agreement (including the issuance and delivery of the Securities hereunder) and all other agreements and transactions contemplated hereby and thereby have been duly
authorized by the Company. This Agreement constitutes a valid and binding obligation of the Company, enforceable in accordance with its terms, subject to the availability of equitable remedies and to the laws of bankruptcy and other similar laws
affecting creditors’ rights generally. The execution and delivery by the Company of this Agreement and all other agreements and instruments contemplated hereby to be executed by the Company and the offering, sale and issuance of the Securities
hereunder, do not and will not (i) conflict with or result in a breach of the terms, conditions or provisions of, (ii) constitute a default under, (iii) result in the creation of any lien, security interest, charge or encumbrance upon the
Company’s capital stock or assets pursuant to, (iv) give any third party the right to accelerate any obligation under, (v) result in a violation of, 

  

 
or (vi) require any authorization, consent, approval, exemption or other action by or notice to any court or administrative or governmental body (other than
in connection with certain state and federal securities laws) pursuant to, the Articles of Incorporation or bylaws of the Company, or any law, statute, rule, regulation, instrument, order, judgment or decree to which the Company is subject or any
agreement or instrument to which the Company is a party. 
  
 4D.
No Registration. Assuming the truth and accuracy of the representations set forth in Section 5 hereof, the offers and sales of the Securities pursuant to the terms hereof are not required to be registered under the Securities Act or
any state securities laws. 
  
 Section 5. Purchasers’
Representations and Warranties. 
  
 5A. Purchaser’s
Investment Representations. Each Purchaser hereby represents that it is acquiring the Restricted Securities purchased hereunder or acquired pursuant hereto for its own account with the present intention of holding such securities for investment
purposes and that it has no intention of selling such securities in a public distribution in violation of the federal securities laws or any applicable state securities laws; provided that nothing contained herein will prevent any Purchaser
and the subsequent holders of Restricted Securities from transferring such securities in compliance with the provisions of Section 3 hereof. 
  
 5B. Other Representations and Warranties of the Purchasers. Each Purchaser hereby severally represents and warrants to the Company that:

  
 (i) such Purchaser has had an opportunity to ask questions and
receive answers concerning the terms and conditions of the Securities purchased hereunder and has had full access to such other information concerning the Company as such Purchaser may have requested and that in making its decision to invest in the
Securities being purchased hereunder such Purchaser is not in any way relying on the fact that any other person has decided to be a Purchaser hereunder or to invest in the Securities; 
  
 (ii) such Purchaser (a) is an “accredited investor” as defined in Rule 501(a) under the Securities Act or (b) by
reason of its business and financial experience, and the business and financial experience of those retained by it to advise it with respect to its investment in the Securities being purchased hereunder, it, together with such advisors, has such
knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of its prospective investment in such Securities, is able to bear the economic risk of such investment and, at the
present time, is able to afford a complete loss of such investment; and 
  
 (iii) (a) such Purchaser has the requisite power and authority to purchase the Securities to be purchased by it hereunder and has authorized the purchase of such Securities and (b) if the Purchaser is not an individual, the purchase of the
Securities being purchased by it hereunder does not violate its charter, by-laws or other organizational documents. 
  
 (iv) the determination of each such Purchaser to purchase the Securities pursuant to this Agreement has been made by such Purchaser independent of any
other Purchaser and independent of any statements or opinions as to the advisability of such purchase or as to the properties, business, prospects or condition (financial or otherwise) of the Company and its 

  

 
subsidiaries which may have been made or given by any other Purchaser or by any agent or employee of any other Purchaser. 
  
 Section 6. Definitions. 
  
 “Person” means an individual, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof. 
  
 “Restricted Securities” means the Common Stock and the L-3 Warrants issued hereunder and any securities issued with respect to such
Common Stock and/or L-3 Warrants, to the extent applicable, by way of any stock dividend or stock split, or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization. As to any particular Restricted
Securities, such securities will cease to be Restricted Securities when they have (a) been effectively registered under the Securities Act and disposed of in accordance with the registration statement covering them, (b) become eligible for sale
pursuant to Rule 144 or Rule 144A of the Securities and Exchange Commission (or any similar rules then in force) or (c) been otherwise transferred and new securities for them not bearing the Securities Act Legend set forth in Section 3D have
been delivered by the Company in accordance with Section 3B. Whenever any particular securities cease to be Restricted Securities, the holder thereof will be entitled to receive from the Company, without expense, new securities of like tenor
not bearing a Securities Act Legend of the character set forth in Section 3D. 
  
 “Rule 144” means Rule 144 promulgated by the Securities and Exchange Commission under the Securities Act as such rule may be amended from time to time, or any similar rule then in force. 

 
 “Rule 144A” means Rule 144A promulgated by the Securities
and Exchange Commission under the Securities Act as such rule may be amended from time to time, or any similar rule then in force. 
  
 “Securities Act” means the Securities Act of 1933, as amended, or any similar federal law then in force. 
  
 “Securities Exchange Act” means the Securities Exchange Act
of 1934, as amended, or any similar federal law then in force. 
  
 “Securities and Exchange Commission” includes any governmental body or agency succeeding to the functions thereof. 
  
 Section 7. Miscellaneous. 
  
 7A. Inspection Rights. So long as the Purchasers own at least 50% of the L-3 Warrants issued on the date hereof (assuming, for purposes of this
Section 7A full exercise of the L-3 Warrants), the Company shall permit one representative selected by the holders of the majority of the L-3 Warrants issued on the date hereof (assuming for purposes of this section that the L-3 Warrants have
been fully exercised), upon reasonable notice and during normal business hours and such other times as any such holder may reasonably request, to (i) visit and inspect any of the properties of the Company and its subsidiaries, (ii) examine the
corporate and financial 

  

 
records of the Company and its subsidiaries and make copies thereof or extracts therefrom and (iii) discuss the affairs, finances and accounts of any such
corporations with the directors, officers, key employees and independent accountants of the Company and its subsidiaries (it being understood that such representative will keep all non-public information confidential). 
  
 7B. Remedies. The holders of Securities acquired hereunder (directly
or indirectly) will have all of the rights and remedies set forth in this Agreement and the Articles of Incorporation, and all of the rights and remedies which such holders have been granted at any time under any other agreement or contract, and all
of the rights and remedies which such holders have under any law. Any Person having any rights under any provision of this Agreement will be entitled to enforce such rights specifically, to recover damages by reason of any breach of any provision of
this Agreement, and to exercise all other rights granted by law. 
  
 7C. Amendments and Waivers. Except as otherwise provided herein, no modification, amendment or waiver of any provision hereof shall be effective against the Company or the Purchasers unless such modification, amendment or waiver is
approved in writing by the Company and the holders of a majority of the Securities purchased hereunder. The failure of any party to enforce any provision of this Agreement or under any agreement contemplated hereby or under the Articles of
Incorporation or the bylaws shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every provision of this Agreement, any agreement referred to herein, the Articles of
Incorporation, or the bylaws in accordance with their terms. 
  
 7D. Survival of Representations and Warranties. All representations and warranties contained herein or made in writing by any party in connection herewith will survive the execution and delivery of this Agreement, regardless of any
investigation made by the Company or any Purchaser or on its behalf. 
  
 7E. Successors and Assigns. 
  
 (i) Except as
otherwise expressly provided herein, all covenants and agreements contained in this Agreement by or on behalf of any of the parties hereto will bind and inure to the benefit of the respective successors and assigns of such parties whether so
expressed or not. In addition, and whether or not any express assignment has been made, the provisions of this Agreement which are for any Purchaser’s benefit as the purchaser or holder of Securities, as the case may be, are also for the
benefit of and enforceable by any subsequent holder of such Purchaser’s Securities. 
  
 (ii) If a sale, transfer, assignment or other disposition of any Securities is made in accordance with the provisions of this Agreement to any Person and any such Securities remain Restricted Securities immediately
after such disposition, such Person shall, at or prior to the time such Securities are acquired, execute a counterpart of this Agreement with such modifications thereto as may be necessary to reflect such acquisition, and such other documents as are
necessary to confirm such Person’s agreement to become a party to, and to be bound by, all covenants, terms and conditions of this Agreement as theretofore amended. 

 7F. Severability. Whenever possible, each provision of this Agreement will 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 invalid, illegal or unenforceable under any applicable law or rule in any jurisdiction, such provision will be ineffective only to the
extent of such invalidity, illegality or unenforceability in such jurisdiction, without invalidating the remainder of this Agreement in such jurisdiction or any provision hereof in any other jurisdiction. 
  
 7G. Counterparts. This Agreement may be executed simultaneously in two
or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together will constitute one and the same Agreement. 
  
 7H. Descriptive Heading. The descriptive headings of this Agreement are inserted for convenience only and do not
constitute a part of this Agreement. 
  
 7I. Governing Law.
All issues concerning the enforceability, validity and binding effect of this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the law of any jurisdiction other than the State of Delaware. 
  
 7J. Notices. All notices, demands or other communications to be given or delivered under or by reason of the
provisions of this Agreement will be in writing and will be deemed to have been given when personally delivered or received by certified mail, return receipt requested, or sent by guaranteed overnight courier service. Notices, demands and
communications will be sent to each Purchaser at such Purchaser’s address as indicated in the books and records of the Company’s transfer agent and registrar and to the Company at the addresses indicated below: 
  
 Notices to the Company: 
  
 Broder Bros., Co. 
 45555 Port Street 
 Plymouth, Michigan 48170

 Attention: Chief Executive Officer 
 Telecopy Number: (734) 454-0296 
  
 With a copy to:

  
 Bain Capital, LLC 
 745 Fifth Avenue 
 New York, New York 10151

 Attention: Edward W. Conard / Yoo Jin Kim 
 Telecopy Number: (212) 421-2225 
  
 and 
  

 Kirkland & Ellis LLP 
 333 Bush Street, 26th Floor 
 San Francisco, California 94104 
 Attention: Jeffrey C. Hammes, P.C. / David A. Breach 
 Telecopy Number: (415) 439-1500 
  
 or to such other address or to the
attention of such other Person as the recipient party has specified by prior written notice to the sending party. 
  
 *        *        *        *        * 
  

 IN WITNESS WHEREOF, the parties hereto have executed this Securities Purchase Agreement on the day and
year first above written. 
  

	COMPANY:
	
	BRODER BROS., CO.
		
	By:	 	 /s/ Vincent Tyra

	 	

	PURCHASERS:
	
	BAIN CAPITAL FUND VII, LLC
	
	 By: Bain Capital Fund VII, L.P., its sole member

	By: Bain Capital Partners VII, L.P., its General Partner
	By: Bain Capital Investors, LLC, its General Partner
		
	By:	 	 /s/ Edward Conard

	 	

	 	 	 Managing Director

	
	BCIP ASSOCIATES III, LLC
	
	By: BCIP Associates III, its Manager
	By: Bain Capital Investors, LLC, its Managing Partner
		
	By:	 	 /s/ Edward Conard

	 	

	 	 	 Managing Director

	
	BCIP T ASSOCIATES III, LLC
	
	By: BCIP Trust Associates III, its Manager
	By: Bain Capital Investors, LLC, its Managing Partner
		
	By:	 	 /s/ Edward Conard

	 	

	 	 	 Managing Director

  

	BCIP ASSOCIATES III-B, LLC
	
	 By: BCIP Associates III-B, its Manager

	 By: Bain Capital Investors, LLC, its Managing Partner

		
	By:	 	 /s/ Edward Conard

	 	

	 	 	 Managing Director

	
	BCIP T ASSOCIATES III-B, LLC
	
	 By: BCIP Trust Associates III-B, its Manager

	 By: Bain Capital Investors, LLC, its Managing Partner

		
	By:	 	 /s/ Edward Conard

	 	

	 	 	 Managing Director

	
	RANDOLPH STREET PARTNERS II
		
	By:	 	 /s/ David T. Erie

	 	

	 	 	 A Partner

  

 Schedule of Purchasers 
  

	 Purchaser

	  	No. of Shares of
Series Class B
Common

	  	No. of Shares of
Class L, Series 3
Common

	  	No. of Shares of
Class L, Series 4
Common

	  	No. of Class
Series L, Series 3
Warrants

	  	Total Investment

	 Bain Capital Fund VII, LLC
	  	23,967,746	  	2,324,458	  	2,247,266	  	258,273	  	$	72,046,500
						
	 BCIP Associates III, LLC
	  	645,336	  	54,416	  	52,609	  	6,046	  	$	1,703,019
						
	 BCIP T Associates III, LLC
	  	116,039	  	19,426	  	18,781	  	2,158	  	$	585,713
						
	 BCIP Associates III-B, LLC
	  	339,154	  	34,027	  	32,897	  	3,781	  	$	1,052,378
						
	 BCIP T Associates III-B, LLC
	  	48,353	  	3,553	  	3,435	  	395	  	$	112,390
						
	 Randolph Street Partners II
	  	166,335	  	16,132	  	15,596	  	1,792	  	$	500,000
	 	  	
	  	
	  	
	  	
	  	
	

						
	 TOTAL
	  	25,282,963	  	2,452,012	  	2,370,584	  	272,445	  	$	76,000,000
	 	  	
	  	
	  	
	  	
	  	
	

  

 Exhibit A 
  

Amended and Restated Articles of Incorporation 
  

 Exhibit B 
  

Form of Warrant

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