Document:

WebFilings | EX-10.32

FIRST AMENDMENT TO FRANCHISEE FINANCING AGREEMENT
THIS FIRST AMENDMENT TO FRANCHISEE AGREEMENT is made as of July 25, 2012 (this “Amendment”), between COLORTYME FINANCE, INC., a Texas corporation (“Administrator”), and CITIBANK, N.A., a national banking association (“Lender”).
R E C I T A L S

A.    Administrator and Lender are parties to a Franchisee Financing Agreement dated as of August 2, 2010 (the “Original Financing Agreement”).
B.    The parties desire to amend the Original Financing Agreement to increase the Program Amount as hereinafter provided.
NOW, THEREFORE, in consideration of these premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Same Terms.  All terms used herein which are defined in the Original Financing Agreement shall have the same meanings when used herein, unless the context hereof otherwise requires or provides.  In addition, all references in the Loan Documents to the “Agreement” shall mean the Original Financing Agreement, as amended by this Amendment, as the same shall hereafter be amended from time to time.  In addition, the following terms have the meanings set forth below:
“Effective Date” means July 25, 2012.
“Modification Papers” means this Amendment, the Authorization Certificates, and all of the other documents and agreements executed in connection with the transactions contemplated by this Amendment.
2.Conditions Precedent.  The transactions contemplated by this Amendment shall be deemed to be effective as of the Effective Date, when the following conditions have been complied with to the satisfaction of Lender, unless waived in writing by Lender:

A.First Amendment to Loan Agreement.  This First Amendment to Franchisee Financing Agreement shall be fully executed by Administrator and Lender.

B.Authorization Certificates.  Administrator shall have delivered certificates from all appropriate Loan Parties (each an “Authorization Certificate”) satisfactory in form and substance to Lender authorizing the execution, delivery and performance of the Modification Papers.

C.Fees and Expenses.  Lender shall have received payment of all out-of-pocket fees and expenses (including reasonable attorneys' fees and expenses) incurred by Lender in connection with the preparation, negotiation and execution of the Modification Papers.

D.Representations and Warranties  All representations and warranties contained herein or in the documents referred to herein or otherwise made in writing in connection herewith or therewith shall be true and correct with the same force and effect as though such representations and warranties have been made on and as of this date.

3.Amendments to Original Financing Agreement.  On the Effective Date, the Original Financing Agreement shall be amended as follows:    

(a)The definition of “Program Amount” in Section 1.1 of the Original Financing Agreement shall be amended in its entirety as follows:

“Program Amount” means the obligation of Lender, subject to the terms and conditions of this Agreement, to make Loans which shall not exceed at any one time outstanding $30,000,000.
(b)Exhibit A to the Original Financing Agreement is hereby replaced with Exhibit A attached hereto.

4.Certain Representations.  Administrator represents and warrants that, as of the Effective Date:  (a) each Loan Party has full power and authority to execute the Modification Papers to which it is a party and the Modification Papers executed by each Loan Party constitute the legal, valid and binding obligation of such Loan Party enforceable in accordance with their terms, except as enforceability may be limited by general principles of equity and applicable bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting the enforcement of creditors' rights generally; and (b) no authorization, approval, consent or other action by, notice to, or filing with, any governmental authority or other person is required for the execution, delivery and performance by each Loan Party thereof.  In addition, Administrator represents that all representations and warranties contained in the Original Loan Agreement are true and correct in all material respects on and as of the Effective Date (except representations and warranties that relate to a specific prior date are based upon the state of facts as they exist as of such date).

5.No Further Amendments.  Except as previously amended in writing or as amended hereby, the Original Financing Agreement shall remain unchanged and all provisions shall remain fully effective between the parties.

6.Limitation on Agreements.  The modifications set forth herein are limited precisely as written and shall not be deemed (a) to be a consent under or a waiver of or an amendment to any other term or condition in the Original Financing Agreement or any of the Loan Documents, or (b) to prejudice any right or rights which Lender now has or may have in the future under or in connection with the Original Financing Agreement and the Loan Documents, each as amended hereby, or any of the other documents referred to herein or therein. The Modification Papers shall constitute Loan Documents for all purposes. 

7.Counterparts.  This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed an original, but all of which constitute one instrument.  In making proof of this Amendment, it shall not be necessary to produce or account for more than one counterpart thereof signed by each of the parties hereto.

8.Incorporation of Certain Provisions by Reference.  The provisions of Section 12.3 of the Original Loan Agreement captioned “Choice of Law and Venue” and Section 12.15 of the Original Loan Agreement captioned “Waiver of Jury Trial” are incorporated herein by reference for all purposes.

9.Entirety, Etc.  This instrument and all of the other Loan Documents embody the entire agreement between the parties.  THIS AMENDMENT AND ALL OF THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT 

ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

[Remainder of Page Intentionally Left Blank; Signatures Begin on Next Page]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment to be effective as of the date and year first above written.
ADMINISTRATOR:

COLORTYME FINANCE, INC.

By:        /s/ Stephen C. Ingham            
Name:  Stephen C. Ingham
Title:  Director of Finance

LENDER

CITIBANK, N.A.

By:        /s/ David C. Hauglid            
         David C. Hauglid
           Senior Vice President

Each Corporate Guarantor hereby acknowledges and agrees that the Obligations, as amended and increased hereby, continue to be guaranteed pursuant to the terms of its Corporate Guaranty Agreement, which Corporate Guaranty Agreement is in full force and effect.

COLORTYME FINANCE, INC.

By:        /s/ Stephen C. Ingham            
Name:  Stephen C. Ingham
Title:  Director of Finance

RENT-A-CENTER, INC.

By:        /s/ Dawn M. Wolverton            
Name:  Dawn M. Wolverton
Title:  Secretary

EXHIBIT A
LOAN NOTICE
(from ColorTyme Finance, Inc. to Lender)
Reference is made to (i) that certain Franchisee Financing Agreement between ColorTyme Finance, Inc. and Citibank, N.A. dated as of August 2, 2010 (together with all amendments and modifications, if any, from time to time made thereto, the “Agreement”) and (ii) Section 2.4 of each Note, pursuant to which Administrator is authorized, on behalf of the Borrowers, to request Loans. The terms used herein shall have the same meanings as provided therefor in the Agreement unless the context hereof otherwise requires or provides.  This notice may only be delivered by Administrator to Lender.  Lender will not accept any loan notice from a Borrower.
A.    GENERAL.
		
	1.
	Date of proposed Loans                ________________________________

		
	2.
	Aggregate amount of Loans requested.        ________________________________

		
	3.
	Administrator hereby certifies that all conditions precedent specified by the Agreement for these Loans have been complied with in all respects.

		
	4.
	Attached hereto is a schedule evidencing the Borrowers requesting Loans and the requested Loan amounts.

B.    AVAILABILITY UNDER PROGRAM.

1.    Program Amount                              $30,000,000
2.    Enter: Outstanding Revolving Loan Commitments    
of all Borrowers approved by Lender                                ___________________                 
3.    Excess availability for Loans 
under the Program (subtract line B2 from line B1)    ___________________
C.    AVAILABILITY FOR APPLICABLE BORROWER(S).

1.    Enter: Outstanding Revolving Loan Commitments
of applicable Borrower(s)                ___________________
2.    Enter: Aggregate Revolving Loan Principal Debt
of applicable Borrower(s) outstanding as of this 
date                                         ___________________
3.    Excess (deficit) available for Loans
(subtract line C2 from line C1)                   _____________________
Administrator hereby certifies that on the date hereof the representations and warranties contained the Agreement are true in all material respects as if made on the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date and no Event of Default or Potential Default exists and is continuing. 
Dated _____________, 2012.
COLORTYME FINANCE, INC.

By:______________________________
     Name:_________________________
     Title:__________________________exhibit101formannualawardag

EXHIBIT 10.1

Vistaprint N.V.

[Form of]
Award Agreement For Fiscal Year 2013
 under the  
Vistaprint N.V.  Performance Incentive Plan For Covered Employees 

Participant:  ________________

Base Amount for the Performance Period:  $______________________

FY 2013 Constant Currency Revenue Target:  $______________________

FY 2013 EPS Target:  $__________

Vistaprint N.V. (the “Company”) hereby awards on the Vesting Date (as defined below) to the participant named above (the “Participant”)  the opportunity to earn a cash amount determined pursuant to the formula set forth below (the “Cash Payment Amount”).  

1.    Award.  If all the conditions set forth in this Agreement are satisfied, the Company will pay the Cash Payment Amount under the Company’s Performance Incentive Plan for Covered Employees, as amended from time to time (the “Plan”), to the Participant named above as promptly as practicable after the Committee makes its determination and certification described in Section 4(b) below, but no later than the next succeeding fiscal quarter after the end of the Performance Period (the “Payment Date”).  The Cash Payment Amount is awarded under and governed by the terms and conditions of the Plan.  Except as provided in Sections 5 and 6 below or Articles VI and XI of the Plan, the Company shall make no Cash Payment Amount until the Payment Date, and the Participant has no rights to any Cash Payment Amount until the Vesting Date.  

2.    Definitions.  

(a)    Except where the context otherwise requires, the term “the Company” includes any Related Company, as defined in the Plan.

(b)    The “Committee” means the Compensation Committee of the Company’s Supervisory Board.

(c)    The “Performance Period” is one fiscal year of the Company ending on the Vesting Date.

(d)    The “Vesting Date” is June 30, 2013.

(e)    Capitalized terms used but not defined herein have the meaning ascribed to them in the the Plan.

3.    Calculation of the Cash Payment Amount.  

(a)    The Cash Payment Amount for the Performance Period equals the Base Amount set forth above multiplied by the Payout Percentage determined as follows:

Payout Percentage = the greater of:

		
	(x)
	-7.5714 + (7.7143 X Revenue%) + (0.8571 X EPS%); or

		
	(y)
	-22.0769 + (20.7692 X Revenue%) + (2.3077 X EPS%)

If either the Revenue% is less than 92.5 or the EPS% is less than 80, then the Payout Percentage is 0% and the Cash Payment Amount is $0, even if the other Target is achieved. The Payout Percentage is capped at a maximum of 200%.  The Company shall round all amounts in the calculation to two decimals.

(b)    “Revenue%” means the Company’s actual constant currency revenue for the Performance Period divided by the FY 2013 Constant Currency Revenue Target set forth above.  The Company’s actual constant currency revenue is calculated by adjusting the Company’s revenue for the Performance Period determined in accordance with United States generally accepted accounting principles (“US GAAP”) to use the currency exchange rates set forth in the Company’s budget for the Performance Period, so long as the Company’s Supervisory Board approves such budget before the 90th day of the Performance Period.  If the Supervisory Board fails to approve the budget for the Performance Period before the 90th day, then the Company shall use the currency exchange rates set forth in the Company’s budget for the fiscal year immediately preceding the Performance Period.  In each case, the Committee must certify the adjusted revenue so calculated.  

(c)    “EPS%” means the Company’s actual US GAAP earnings per share for the Performance Period, adjusted as set forth in Section 3(d) below, divided by the FY 2013 EPS Target set forth above.  For the avoidance of doubt, earnings per share calculations are inclusive (net of) the expense associated with all employee compensation or bonus plans, including those made pursuant to the Plan.

(d)    In determining the extent, if any, to which the performance criteria in this Section 3 have been achieved, the Committee shall adjust the performance criteria proportionately to take into account the following:

(1)    Reductions in earnings per share for the Performance Period, as compared to the FY 2013 EPS Target set forth above, that the Committee reasonably determines have resulted from dilutive acquisitions of businesses or assets or minority investments in businesses by the Company and/or any of its subsidiaries (the “Consolidated Company”) that are completed during or before the Performance Period but after the date on which the Committee determined the FY 2013 EPS Target (the “Eligible Period”).

(2)    Reductions in earnings per share for the Performance Period, as compared to the FY 2013 EPS Target, that result directly from the Company’s changing the basis of its financial statements filed with the US Securities and Exchange Commission (the “SEC”) resulting from either (i) a change from US GAAP to International Financial Reporting Standards or another accounting standard permitted by the SEC for use by registered companies or (ii) a change to existing US GAAP required to be made in the Performance Period. 

2

(3)    Reductions in earnings per share for the Performance Period, as compared to the FY 2013 EPS Target, that result directly from amounts that are accrued, paid or payable by the Consolidated Company during the applicable Performance Period (i) under any agreement that the Consolidated Company enters into in settlement of a Lawsuit, or (ii) in damages or penalties awarded by a court or other governmental agency in judgment of a Lawsuit, in each case where the expense for such settlement or award occurred during the Eligible Period. A “Lawsuit” is a lawsuit, administrative proceeding (including but not limited to tax proceedings) or similar process for presenting claims for adjudication by any state, federal, national or local court or governmental or regulatory agency in which the Consolidated Company is a party. 

(4)    Reductions in earnings per share for the Performance Period, as compared to the FY 2013 EPS Target, resulting from charges attributable to the impairment of the Company’s intangible assets or goodwill.  

(5)    Reductions in earnings per share for the Performance Period, as compared to the FY 2013 EPS Target, resulting from charges incurred as part of a discontinuation or integration of operations, including charges relating to the cost of the termination of contracts (including but not limited to lease agreements), termination of employees, relocation of resources (including employees and assets), write-offs or impairments of tangible or intangible assets, or other expenses and charges tied directly to the decision to discontinue or integrate operations of the Company. 

4.    Conditions for Payment.  Except as provided in Sections 5 or 6 below or Articles VI or XI of the Plan, the Company shall not pay any Cash Payment Amount unless all of the following conditions are satisfied: 

(a)    The Participant is, and has continuously been, an employee of the Company beginning with the date of this Agreement and continuing through the Vesting Date.

(b)    The performance criteria set forth in Section 3 above are satisfied during the Performance Period.  The Committee must determine and certify in writing after the end of the Performance Period the extent, if any, to which the performance criteria have been achieved.  

(c)    Notwithstanding the foregoing, the Committee may reduce the Cash Payment Amount, including to $0, if the Committee believes, in its sole discretion, that such a reduction is necessary or appropriate.

5.    Employment Events Affecting Payment of Award.  

(a)    If the Participant dies or becomes disabled (within the meaning of Section 22(e)(3) of the Code) before the end of the Performance Period, then the Participant or his estate is nevertheless eligible to receive on the Payment Date the pro rata share of the Cash Payment Amount based on the number of months of participation during any portion of the Performance Period in which the death or disability occurs.   

(b)    If the Participant is terminated other than by reason of death or disability, then except to the extent specifically provided to the contrary in any other agreement between the Participant and the Company, the Company shall pay no Cash Payment Amount, and this Agreement is of no further force or 

3

effect unless the performance criteria set forth in the accompanying Award Agreement are satisfied and the Committee determines, in its sole discretion, that the Cash Payment Amount is merited.

(c)    If, at any time after the Vesting Date but before the Payment Date, (i) the Participant’s relationship with the Company is terminated by the Company for Cause (as defined below) or (ii) the Participant’s conduct after termination of the employment relationship violates the terms of any non-competition, non-solicitation or confidentiality provision contained in any employment, consulting, advisory, proprietary information, non-competition, non-solicitation or other similar agreement between the Participant and the Company, then, without limiting any other remedy available to the Company, all right, title and interest in and to the Cash Payment Amount are forfeited and revert to the Company as of the date of such determination and the Company is entitled to recover from the Participant the Cash Payment Amount.

(d)    “Cause,” as determined by the Company (which determination is conclusive), means: 

(1)    the Participant’s willful and continued failure to substantially perform his or her reasonable assigned duties (other than any such failure resulting from incapacity due to physical or mental illness or, if applicable, any failure after the Participant gives notice of termination for Good Reason, as defined in an agreement between the Participant and the Company), which failure is not cured within 30 days after a written demand for substantial performance is received by the Participant from the Supervisory Board which specifically identifies the manner in which the Board believes the Participant has not substantially performed the Participant’s duties; or

(2)    the Participant’s willful engagement in illegal conduct or gross misconduct that is materially and demonstrably injurious to the Company.

For purposes of this Section 5(d), no act or failure to act by the Participant is considered “willful” unless it is done, or omitted to be done, in bad faith and without reasonable belief that the Participant’s action or omission was in the best interests of the Company.

6.    Change in Control.  Upon a Change in Control (as defined in the Plan), except to the extent specifically provided to the contrary in any other agreement between the Participant and the Company, the performance criteria set forth in Section 3 above are deemed satisfied for the Performance Period in which the Change in Control occurs, and in lieu of the amounts to be determined pursuant to the formula set forth in Section 3 above, the Participant is entitled to receive instead a Cash Payment Amount equal to 100% of the Base Amount, pro-rated through the date of the Change in Control, for the Performance Period in which the Change in Control occurs, which amount is payable as soon as practicable following the Change in Control, but no later than 2.5 months following the Change in Control.  

7.    No Special Employment or Similar Rights.  Nothing contained in the Plan or this Agreement shall be construed or deemed by any person under any circumstances to bind the Company to continue the employment or other relationship of the Participant with the Company.  The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with the Participant free from any liability or claim under the Plan or this Agreement.

8.    Withholding Taxes.  The Company’s obligation to pay the Cash Payment Amount is subject to the Participant’s satisfaction of all applicable income, employment, social charge and other tax withholding requirements under all applicable rules and regulations. 

4

9.    Transferability.  The Participant shall not sell, assign, transfer, pledge, hypothecate or otherwise dispose of this Agreement (whether by operation of law or otherwise) (collectively, a “transfer”), except that this Agreement may be transferred (i) by the laws of descent and distribution, (ii) pursuant to a qualified domestic relations order, or (iii) with the prior consent of the Committee, to or for the benefit of any immediate family member, family trust, family partnership or family limited liability company established solely for the benefit of the Participant and/or an immediate family member of the Participant.

10.    Miscellaneous.  

(a)    Except as provided herein, this Agreement may not be modified unless evidenced in writing and signed by the Company and the Participant, unless the Committee determines that the modification, taking into account any related action, would not materially and adversely affect the Participant.

(b)      All notices under this Agreement must be mailed or delivered by hand to the Company at its main office, Attn: Secretary, and to the Participant at his or her last known address on the employment records of the Company or at such other address as may be designated in writing by either of the parties to one another.

(c)      This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, USA.

	
		
	Accepted and Agreed:
	Vistaprint N.V.

	

__________________________________
[Participant]

	

By:   ____________________________
Name:   ____________________________
Title   ____________________________

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]