Document:

Exhibit 10.39

 

TIFFANY & CO.

a Delaware Corporation

(the “Parent”)

TERMS OF STOCK OPTION AWARD

(Transferable Non-Qualified Option)

under the

2014 EMPLOYEE INCENTIVE PLAN

(the “Plan”)

1.                 
Introduction and Terms of Option. Participant has been granted a Non-Qualified Stock Option Award (the
“Option”) to purchase shares of Common Stock under the Plan by the Committee. The name of “Participant,”
the “Grant Date,” the number of “Covered Shares,”
the “Maturity Date” and the “Exercise Price” per share are stated in the attached “Notice
of Grant.” The other terms and conditions of the Option are stated in this document and in the Plan.

2.                 
Award and Exercise Price; Option Not An Incentive Stock Option. Subject to the terms and conditions
stated in this document, the Option gives Participant the right to purchase the Covered Shares from Parent at the Exercise Price.
The Option is not intended to constitute an “incentive stock option” as that term is used in the Code.

3.                 
Earliest Dates for Exercise. Unless otherwise provided herein, the Option shall become exercisable (“mature”)
in a single installment on the Maturity Date
as specified in the Notice of Grant.

4.                 
Expiration Date. No portion of the Option, whether matured or not, shall be exercisable following the Expiration
Date. Unless otherwise provided herein, the “Expiration Date” shall be the earlier of (i) the five-year anniversary
of the Termination Date and (2) the ten-year anniversary of the Grant Date.

5.                 
Effect of Termination of Employment; Change in Control.

(a)               
Generally. If Participant’s Termination Date occurs prior to the Maturity Date specified in the Notice of Grant
by any reason other than those described in Sections 5(b) through 5(e) below, a portion of the Option shall mature on the Maturity
Date specified in the Notice of Grant with respect to the number of Covered Shares equal to the product of (1) the aggregate number
of Covered Shares specified in the Notice of Grant and (2) the quotient of (x) the number of days between and including the Grant
Date and the Termination Date divided by (y) three hundred sixty-five (365), rounded up to the nearest whole Covered Share, and
the remaining portion of the Option shall not mature and shall be null and void.

(b)              
Termination due to death or Disability. If Participant’s Termination Date occurs prior to the Maturity Date
specified in the Notice of Grant by reason of death or Disability, then in each case the Option shall mature on the Termination
Date.

    	 

     

    

(c)               
Termination due to Successful Hiring of a Permanent CEO. If Participant’s Termination Date occurs prior to
the Maturity Date specified in the Notice of Grant by reason of the successful hiring of a permanent Chief Executive Officer of
Parent (as reasonably determined by Parent in good faith), the Option shall mature on the Maturity Date specified in the Notice
of Grant.

(d)              
Termination for Cause. If Participant’s Termination Date occurs by reason of involuntary termination for Cause,
any portion of the Option that has not yet matured shall not mature and shall be null and void; and the Expiration Date shall be
the Termination Date.

(e)               
Effect of Change in Control. Upon the earlier of (i) the occurrence of a Change in Control that is a Terminating
Transaction, or (ii) Participant’s Involuntary Termination, each portion of the Option that has not yet matured shall mature.

6.                 
Methods of Option Exercise.

(a)               
Prior to the Expiration Date, matured portions of the Option may be exercised in whole or in part by filing a written notice
of exercise with the Corporate Secretary of Parent at its corporate headquarters. Such notice shall specify the number of Shares
which Participant elects to purchase (the “Exercised Shares”) and shall be accompanied by a bank-certified check
payable to Parent (or other type of check or draft payable to Parent and acceptable to its Corporate Secretary) in the amount of
the Exercise Price for the Exercised Shares plus any tax withholding resulting from such exercise as computed by Employer. The
exercise shall be deemed complete on Parent’s receipt of such notice and said check or draft.

(b)              
Alternatively, in lieu of such check or draft, if permitted by Parent, and subject to such requirements as Parent may specify
(including without limitation requirements consistent with applicable policies concerning insider information), Participant may
provide a copy of directions to, or a written acknowledgment from, an Approved Broker that the Approved Broker has been directed
to sell, for the account of the owner of the Option, Shares (or a sufficient portion of the Shares) acquired upon exercise of the
Option, together with an undertaking by the Approved Broker to remit to Parent a sufficient portion of the sale proceeds to pay
the Exercise Price for the Exercised Shares plus any tax withholding resulting from such exercise as computed by Employer. The
exercise shall be deemed complete on the trade date of the sale.

(c)               
The Committee may approve other methods of exercise, as provided for in the Plan, before the Option is exercised.

7.                 
Withholding. All distributions on the exercise of the Option are subject to withholding of all applicable
taxes. The method for withholding shall be the same as those described in paragraph 6 above, unless
the Committee approves other methods of withholding, as provided for in the Plan, before the Option is exercised.

8.                 
Transferability. The Option is not transferable other than by will or the laws of descent and distribution
or pursuant to a “domestic relations order,” as defined in the Code or

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Title I of the Employee Retirement Income
Security Act or the rules thereunder, and shall not otherwise be transferred, assigned, pledged, hypothecated or disposed of in
any way, whether by operation of law or otherwise, nor shall it be subject to execution, attachment or similar process. Notwithstanding
the foregoing, the Option may be transferred by Participant to (i) the spouse, children or grandchildren of Participant (each an
“Immediate Family Member”), (ii) a trust or trusts for the exclusive benefit of any or all Immediate Family Members,
or (iii) a partnership in which any or all Immediate Family Members are the only partners, provided that (x) there may be no consideration
paid or otherwise given for any such transfer, and (y) subsequent transfer of the Option is prohibited otherwise than by will,
the laws of descent and distribution or pursuant to a domestic relations order. Following transfer, the Option shall continue to
be subject to the same terms and conditions as were applicable immediately prior to transfer. The provisions of paragraph ‎5
above shall continue to be applied with respect to the original Participant following transfer and the Option shall be exercisable
by the transferee only to the extent, and for the periods specified, herein. Upon any attempt to transfer the Option other than
as permitted herein or to assign, pledge, hypothecate or dispose of the Option other than as permitted herein, or upon the levy
of any execution, attachment or similar process upon the Option, the Option shall immediately terminate and become null and void.

9.                 
Definitions. For the purposes of the Option, capitalized terms shall have the meanings provided herein or
in the Definitional Appendix attached. Except where the context clearly implies or indicates the contrary, a word, term, or phrase
used in the Plan shall have the same meaning in this document.

10.             
Heirs and Successors. The terms of the Option shall be binding upon, and inure to the benefit of, Parent and
its successors and assigns, and upon any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all
or substantially all of Parent’s assets and business. Participant may designate a beneficiary of his/her rights under the
Option by filing written notice with the Corporate Secretary of Parent. In the event of Participant’s death prior to the
full exercise of the Option, the Option may be exercised by such beneficiary to the extent it was exercisable on Participant’s
Termination Date and up until its Expiration Date. If Participant fails to designate a beneficiary, or if the designated beneficiary
dies before Participant, the Option may be exercised by Participant’s estate to the extent that it was exercisable on Participant’s
Termination Date and up until its Expiration Date.

11.             
Administration. The authority to manage and control the operation and administration of the Option shall be
vested in the Committee, and the Committee shall have all powers with respect to the Option as it has with respect to the Plan.
Any interpretation of the Option by the Committee and any decision made by it with respect to the Option shall be final and binding.

12.             
Compliance with Restrictive Covenants. Notwithstanding any other provision in these terms to the contrary,
the Option shall not vest pursuant to Sections 5(a), 5(b) or 5(c) if the Committee determines that Participant has materially breached
the terms and conditions of any applicable confidentiality, non-competition, non-solicitation or other restrictive covenants.

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13.             
Plan Governs. Notwithstanding anything in this document to the contrary, the terms of the Option shall be
subject to the terms of the Plan, a copy of which has been provided to Participant.

14.             
Securities Matters. All Shares and Exercised Shares shall be subject to the restrictions on sale, encumbrance
and other disposition provided by federal or state law. Parent shall not be obligated to sell or issue any Shares or Exercised
Shares pursuant to this document unless, on the date of sale and issuance thereof, such Shares are either registered under the
Securities Act, and all applicable state securities laws, or are exempt from registration thereunder. Regardless of whether the
offering and sale of Shares under the Plan have been registered under the Securities Act, or have been registered or qualified
under the securities laws of any state, Parent at its discretion may impose restrictions upon the sale, pledge or other transfer
of such Shares (including the placement of appropriate legends on stock certificates or the imposition of stop-transfer instructions)
if, in the judgment of Parent, such restrictions are necessary in order to achieve compliance with the Securities Act or the securities
laws of any state or any other law.

15.             
Investment Purpose. Unless the Shares are registered under the Securities Act, any and all Shares acquired
by Participant under this document will be acquired for investment for Participant’s own account and not with a view to,
for resale in connection with, or with an intent of participating directly or indirectly in, any distribution of such Shares within
the meaning of the Securities Act. Participant shall not sell, transfer or otherwise dispose of such Shares unless they are either
(i) registered under the Securities Act and all applicable state securities laws, or (ii) exempt from such registration in the
opinion of Parent’s counsel.

16.             
No Guarantee of Continued Employment or Service. This document, the transactions contemplated hereunder and
the exercise schedule set forth herein do not constitute an express or implied promise of continued employment or other service
for the exercise period or for any other period, and shall not interfere with Participant’s right or the right of Employer,
Parent or any Affiliate to terminate the employment or service relationship at any time, with or without cause, subject to the
terms of any written employment agreement (including any offer letter) between Participant and Employer, Parent or any Affiliate.

17.             
Entire Document; Governing Law. The Plan and this document constitute the entire terms with respect to the
subject matter hereof and supersede in their entirety all prior undertakings of Employer, Parent or any Affiliate. In the event
of any conflict between this document and the Plan, the Plan shall be controlling, except as otherwise specifically provided in
the Plan. This document shall be construed under the laws of the State of New York, without regard to conflict of laws principles.

18.             
Opportunity for Review. Participant has reviewed the Plan and this document in their entirety, has had an
opportunity to obtain the advice of counsel and fully understands all provisions of the Plan and this document. All decisions or
interpretations of the Committee upon any questions relating to the Plan and this document shall be binding, conclusive and final.

19.             
Section 409A. In no event shall Parent, Employer, or any Affiliate have any liability or obligation with
respect to taxes, penalties, interest or other expenses for which

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Participant may become liable as a result
of the application of Code Section 409A. Notwithstanding anything herein to the contrary, these terms are intended to be interpreted
and applied so that the payments and benefits set forth herein either shall either be exempt from the requirements of Code Section 409A,
or shall comply with the requirements of Code Section 409A, and, accordingly, to the maximum extent permitted, this document
shall be interpreted to be exempt from or in compliance with Code Section 409A. To the extent that any provision under this
document is ambiguous as to its compliance with Code Section 409A, the provision shall be interpreted in a manner so that
no amount payable to Participant shall be subject to an “additional tax” within the meaning of Code Section 409A.
For purposes of Code Section 409A, each payment provided under this document shall be treated as a separate payment. Notwithstanding
any other provision of this document, payments provided under this document may only be made upon an event and in a manner that
complies with Code Section 409A or an applicable exemption.

In addition to the provisions regarding
Code Section 409A set forth above, the following shall apply:

If Participant notifies Parent that
Participant believes that any provision of this document (or of any award of compensation or benefit, including equity compensation
or benefits provided herein or at any time during his employment with Employer) would cause Participant to incur any additional
tax or interest under Code Section 409A or Parent independently makes such determination, Parent shall, after consulting with
Participant, reform such provision (or award of compensation or benefit) to attempt to comply with or be exempt from Code Section 409A
through good faith modifications to the minimum extent reasonably appropriate. To the extent that any provision hereof (or award
of compensation or benefit) is modified in order to comply with Code Section 409A, such modification shall be made in good
faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to Participant and
Parent without violating the provisions of Code Section 409A.

 

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Appendix I -- Definitions

“Affiliate”
shall mean any Person that controls, is controlled by or is under common control with, any other Person, directly or indirectly.

“Approved
Broker” means one or more securities brokerage or financial services firms designated by Parent from time to time.

“Cause”
shall mean a termination of employment which is the result of:

		(i)	Participant’s conviction or plea of guilty or nolo contendere to a felony or any other
crime involving financial impropriety or moral turpitude which would tend to subject Parent or any Affiliate of Parent to public
criticism or to materially interfere with Participant’s continued employment;

		(ii)	Participant’s willful and material violation of (A) Parent’s Business Conduct Policy
- Worldwide or (B) if applicable, Parent’s Code of Business and Ethical Conduct for Directors, the Chief Executive Officer,
the Chief Financial Officer and All Other Officers of the Company, in each case as such policy may be amended from time to time;

		(iii)	Participant’s willful failure, or willful refusal, to substantially perform or attempt to
substantially perform his or her duties or all such proper and achievable directives issued by Participant’s manager or the
Parent Board (other than any such failure resulting from incapacity due to physical or mental illness, or any such refusal made
in good faith because Participant believes such directives to be illegal, unethical or immoral), provided Participant receives
written notice demanding substantial performance and fails to comply within ten (10) business days of such demand;

		(iv)	Participant’s gross negligence in the performance of Participant’s duties and responsibilities
that is materially injurious to Parent or any Affiliate of Parent;

		(v)	Participant’s willful breach of any material obligation that Participant has to Parent or
any Affiliate of Parent under any written agreement with Parent or such Affiliate;

		(vi)	Participant’s fraud, dishonesty, or theft with regard to Parent or any Affiliate of Parent;
and

		(vii)	Participant’s failure to reasonably cooperate in any investigation of alleged misconduct
by Participant, or by any other employee of Parent or any Affiliate of Parent.

For purposes of the foregoing, no act
or failure to act on Participant’s part shall be deemed “willful” unless done, or omitted to be done, by Participant
in bad faith toward, or without reasonable belief that his or her action or omission was in the best interests of, Parent or any
Affiliate of Parent.

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“Change in
Control” shall mean the occurrence of any of the following:

		(i)	Any Person or group (as defined in Rule 13d-5 under the Exchange Act) of Persons (excluding
(i) Parent or any of its Affiliates, (ii) a trustee or any fiduciary holding securities under an employee benefit plan of Parent
or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, (iv) a
corporation owned, directly or indirectly by stockholders of Parent in substantially the same proportions as their ownership of
Parent, or (v) any surviving or resulting entity or ultimate parent entity resulting from a reorganization, merger, consolidation
or other corporate transaction referred to in clause (iii) below that does not constitute a Change in Control under clause (iii)
below) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of securities of Parent representing thirty-five percent (35%) or more of the combined voting power of Parent’s then
outstanding securities entitled to vote in the election of directors of Parent;

		(ii)	If the individuals who, as of March 16, 2016, constitute the Parent Board (such individuals, the
“Incumbent Board”) cease for any reason to constitute a majority of the Parent Board, provided that any person becoming
a director subsequent to such date whose election, or nomination for election by the Parent’s shareholders, was approved
by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such person
were a member of the Incumbent Board;

		(iii)	The consummation of a reorganization, merger, consolidation or other corporate transaction involving
Parent, in each case with respect to which the stockholders of Parent immediately prior to the consummation of such transaction
would not, immediately after the consummation of such transaction, own more than fifty percent (50%) of the combined voting
power of the surviving or resulting Person or ultimate parent entity resulting from such transaction, as the case may be; or

		(iv)	Assets representing fifty percent (50%) or more of the consolidated assets of Parent and its subsidiaries
are sold, liquidated or distributed in a transaction (or series of transactions within a twelve (12) month period), other than
such a sale or disposition immediately after which such assets will be owned directly or indirectly by the stockholders of Parent
in substantially the same proportions as their ownership of the common stock of Parent immediately prior to such sale or disposition.

“Code”
shall mean the Internal Revenue Code of 1986, as amended, and any successor provisions thereto.

“Committee”
means the Compensation Committee of the Parent Board and/or the Stock Option Subcommittee thereof.

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“Common Stock”
shall mean the common stock of Parent.

“Disability”
shall mean Participant’s incapacity due to physical or mental illness which causes Participant to be absent from the full-time
performance of Participant’s duties with Employer for six (6) consecutive months; provided, however, that Participant shall
not be determined to be subject to a Disability unless Participant fails to return to full-time performance of Participant’s
duties with Employer within thirty (30) days after Employer delivers a written notice to Participant advising Participant of the
impending termination of his or her employment due to Disability.

“Employer”
shall mean the Affiliate of Parent that employs Participant from time to time, and any successor to its business and/or assets
by operation of law or otherwise.

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and any successor act or provisions thereto.

“Good Reason”
means any one or more of the following actions taken without Participant’s consent:

		(i)	a material adverse change in Participant’s duties, authority, responsibilities or reporting
responsibility;

		(ii)	a failure of any successor to Employer or Parent (whether direct or indirect and whether by merger,
acquisition, consolidation, asset sale or otherwise) to assume in writing any obligations arising out of any agreement between
Employer or Parent and Participant;

		(iii)	any other action or inaction that constitutes a material breach by Employer or Parent of any agreement
between Participant and Employer. For the avoidance of doubt, any payout of a short-term incentive or annual bonus for a given
fiscal year which is less than the target shall not constitute Good Reason, provided that such lower payout is based upon the failure
to meet pre-determined performance goals or a good faith determination by Employer or the Committee of Parent Board that Parent’s
financial performance or Participant’s personal performance did not warrant a greater payout;

		(iv)	Parent’s failure to comply with the terms of any equity award granted to or required by contract
to be granted to Participant; or

		(v)	the relocation of Employer’s office where Participant was based immediately prior to a Change
in Control to a location more than fifty (50) miles away, or should Employer require Participant to be based more than fifty (50)
miles away from such office (except for required travel on Employer’s business to an extent substantially consistent with
Participant’s customary business travel obligations in the ordinary course of business prior to a Change in Control).

Notwithstanding the foregoing, Participant
must give written notice to the Corporate Secretary of Parent of the occurrence of an event or condition that constitutes Good
Reason no later than

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ninety (90) days following the occurrence
of such event or condition, and Employer shall have thirty (30) days from the date on which such written notice is received to
cure such event or condition.  If Employer is able to cure such event or condition within such 30-day period (or any longer
period agreed upon in writing by Participant and Employer), such event or condition shall not constitute Good Reason hereunder. 
If Employer fails to cure such event or condition, Participant’s termination for Good Reason shall be effective immediately
following the end of such 30-day cure period (or any such longer period agreed upon in writing by Participant and Employer).

“Incumbent
Board” shall have the meaning provided in sub-section (ii) of the definition entitled “Change in Control.”

“Involuntary
Termination” means, following a Change in Control, (i) Employer’s involuntary termination of Participant’s employment
without Cause, or (ii) Participant’s resignation from Employer due to Good Reason within one year following such Change in
Control.

“Parent”
shall mean Tiffany & Co., and any successor to all or substantially all of its business and/or assets by operation of law or
otherwise.

“Parent Board”
shall mean the Board of Directors of Parent.

“Person”
shall mean any individual, firm, corporation, partnership, limited partnership, limited liability partnership, business trust,
limited liability company, unincorporated association or other entity, and shall include any successor (by merger or otherwise)
of such entity.

“Share”
means a share of Common Stock.

“Terminating
Transaction” shall mean any one of the following:

		(i)	the dissolution or liquidation of Tiffany & Co.;

		(ii)	a reorganization, merger or consolidation of Tiffany & Co. with one or more Persons as a result
of which Tiffany & Co. goes out of existence or becomes a subsidiary of another Person; or

		(iii)	upon the acquisition of substantially all of the property or more than eighty percent (80%) of
the then outstanding stock of Tiffany & Co. by another Person;

provided that none of the foregoing
transactions (i) through (iii) will be deemed to be a Terminating Transaction, if as of a date at least fourteen (14) days prior
to the date scheduled for such transaction provisions have been made in writing in connection with such transaction for the assumption
of the Grant or the substitution for the Grant of a new grant covering the publicly-traded stock of a successor Person, with
appropriate adjustments as to the number and kind of shares.

“Termination
Date” shall mean the first day on which Participant’s employment with Employer terminates for any reason; provided
that a termination of employment shall not be

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deemed to occur by reason of the transfer
of employment between Employers; and further provided that such employment shall not be considered terminated while Participant
is on a leave of absence approved by Employer or required by applicable law. If, as a result of a sale or other transaction, Employer
ceases to be an Affiliate of Parent, the occurrence of such transaction shall be treated as the Termination Date, and Participant’s
employment will be deemed to have been involuntarily terminated without cause.

“Tiffany &
Co.” shall mean Tiffany & Co., a Delaware corporation.

 

 

10ex101refi.htm

 

 

 

EXHIBIT 10.1

 

 

EXECUTION VERSION

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT is dated as of February 17, 2017 (this “First Amendment”), and entered into by and among PGT Innovations, Inc. (formerly known as PGT, Inc.), a Delaware corporation (the “Parent Borrower”), the other Credit Parties (as defined in the Credit Agreement referred to below) party hereto, the Lenders party hereto and Deutsche Bank AG New York Branch, as Administrative Agent.

 

RECITALS:

 

WHEREAS, reference is hereby made to the Credit Agreement, dated as of February 16, 2016 (as amended, restated, supplemented and/or otherwise modified from time to time prior to the First Amendment Effective Date referred to below, the “Credit Agreement”), among the Parent Borrower, the Lenders and LC Issuers party thereto, the Administrative Agent, the Collateral Agent and the other parties named therein (capitalized terms used but not defined herein having the meaning provided in the Credit Agreement); and

 

WHEREAS, pursuant to Sections 3.03 and 10.12 of the Credit Agreement, the Parent Borrower and certain of the Lenders party hereto constituting no less than (x) all of the Term Lenders holding Initial Term Loans and (y) the Required Lenders (determined immediately prior to giving effect to this First Amendment) agree to a decrease of the interest rate margins applicable to the Initial Term Loans under the Credit Agreement and certain related amendments as set forth herein, in each case subject to the terms and conditions hereof;

 

NOW, THEREFORE, in consideration of the premises and agreements, provisions and covenants herein contained, the parties hereto agree as follows:

 

A. Amendments to Credit Agreement.  On the First Amendment Effective Date, the Credit Agreement is hereby amended as follows:

 

(i) Clause (i) of the definition of “Applicable Margin” in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(i) in the case of Initial Term Loans maintained as (A) Base Rate Loans, 3.75% and (B) Eurodollar Loans, 4.75%,”.

 

(ii) The definition of “Arrangers” appearing in Section 1.01 of the Credit Agreement is hereby amended by deleting said definition in its entirety and inserting the following new definition in lieu thereof:

 

“Arrangers” means (i) Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey, Inc., each in its capacity as a joint lead arranger and joint book running manager for the Initial Facilities established on the Closing Date and any successors thereto and (ii) Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey, Inc., each in its capacity as a joint lead arranger and joint book running manager for the Lenders with respect to the First Amendment and the transactions contemplated thereby.

 

(iii) Section 1.01 of the Credit Agreement is hereby further amended by adding the following definitions in appropriate alphabetical order:

 

  

- 1 -

  

 

“First Amendment” shall mean that certain First Amendment to Credit Agreement, dated as of February 17, 2017, among the Parent Borrower, the Administrative Agent and the Lenders and other Credit Parties party thereto.

 

“First Amendment Effective Date” shall have the meaning provided in the First Amendment.

 

(iv) Section 2.11(h) of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following text in lieu thereof:

 

“(h)          In the event that, after the First Amendment Effective Date and prior to the twelve (12) month anniversary of the First Amendment Effective Date, all or any portion of the Initial Term Loans are subject to a Repricing Event, the Parent Borrower agrees to pay a premium to each Term Lender holding Initial Term Loans equal to 1.00% of the principal amount of the Initial Term Loans of such Term Lender so prepaid, or, in the case of a modification of the Initial Term Loans constituting a Repricing Event, 1.00% of the principal amount of the Initial Term Loans of such Term Lender so modified.  Such fees shall be earned, due and payable upon the date of the occurrence of the respective Repricing Event.”

 

(v) Section 2.13(c)(vi) of the Credit Agreement is hereby amended by deleting the text “on or prior to the twelve (12) month anniversary of the Closing Date” appearing therein and replacing it with the text “after the First Amendment Effective Date and prior to the twelve (12) month anniversary of the First Amendment Effective Date”.

 

(vi) Section 3.03(b)(v) of the Credit Agreement is hereby amended by deleting the text “on or prior to the twelve (12) month anniversary of the Closing Date” appearing therein and replacing it with the text “after the First Amendment Effective Date and prior to the twelve (12) month anniversary of the First Amendment Effective Date”.

 

B. Conditions Precedent. This First Amendment shall become effective as of the first date (the “First Amendment Effective Date”) when each of the conditions set forth in this Section B shall have been satisfied:

 

1. The Administrative Agent shall have received duly executed counterparts hereof that, when taken together, bear the signatures of (a) (i) the Parent Borrower, (ii) each of the other Credit Parties, (iii) the Administrative Agent, (iv) each Lender holding Initial Term Loans (other than a First Amendment Non-Consenting Lender (as defined below)) and (v) any Person that acquires any Initial Term Loans from any First Amendment Non-Consenting Lender as contemplated by Section B(5) below (that together with each Person described in clause (iv) constitute all of the Lenders holding Initial Term Loans) and (b) the Required Lenders (determined immediately prior to giving effect to this First Amendment).

 

 

2. The Parent Borrower shall have reimbursed or paid all reasonable and documented out-of-pocket expenses in connection with this First Amendment and any other out-of-pocket expenses of the Administrative Agent, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent as required to be paid or reimbursed pursuant to (a) that certain Engagement Letter, dated as of February 1, 2017, among the Parent Borrower, Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey, Inc. and (b) the Credit Agreement.

 

  

- 2 -

  

 

3. The Administrative Agent shall have received (x) a certificate of good standing (or subsistence) with respect to each Credit Party from the Secretary of State (or similar official) of the State of such Credit Party’s organization, (y) a closing certificate executed by an Authorized Officer of the Parent Borrower, dated the First Amendment Effective Date, certifying as to the accuracy of the matters set forth in Section C(2) of this First Amendment and (z) a certificate executed by an Authorized Officer of the Parent Borrower, dated the First Amendment Effective Date, certifying as to the incumbency and specimen signature of each officer of a Credit Party executing this First Amendment or any other document delivered in connection herewith on behalf of any Credit Party and attaching (A) a true and complete copy of the certificate of incorporation (or other applicable charter document) of each Credit Party, including all amendments thereto, as in effect on the First Amendment Effective Date, certified as of a recent date by the Secretary of State (or analogous official) of the jurisdiction of its organization (or, in the alternative, the Parent Borrower may certify that the copies of such documents delivered to the Administrative Agent on the Closing Date have not been amended and remain in full force and effect), (B) a true and complete copy of the by-laws (or other applicable operating agreements) of each Credit Party as in effect on the First Amendment Effective Date (or, in the alternative, the Parent Borrower may certify that the copies of such documents delivered to the Administrative Agent on the Closing Date have not been amended and remain in full force and effect) and (C) a true and complete copy of resolutions duly adopted or written consents duly executed by the board of directors (or equivalent governing body or any committee thereof) of each Credit Party authorizing the execution, delivery and performance of this First Amendment and the performance of the Credit Agreement (as amended by this First Amendment) and the other Credit Documents and certifying that such resolutions or written consents have not been modified, rescinded or amended and are in full force and effect.

 

4. No Default or Event of Default shall have occurred and be continuing (both immediately before and immediately after giving effect to this First Amendment and the transactions contemplated hereby).

 

5. (x) The Initial Term Loans held by each Term Lender that has not executed and delivered a counterpart of this First Amendment to the Administrative Agent on or prior to 5:00 p.m. (New York City time) on February 9, 2017 and constitutes a Non-Consenting Lender as contemplated by Section 10.12(f) of the Credit Agreement (each, a “First Amendment Non-Consenting Lender”) shall have been assigned to an assignee Lender in accordance with Sections 3.03(b), 10.06 and 10.12(f) of the Credit Agreement, (y) any fees, costs and any other expenses in connection with such assignment arising under Article III or any other provision of the Credit Agreement shall have been paid in full or, in the case of transfer fees payable in connection with an assignment, waived by the Administrative Agent, and (z) all accrued and unpaid interest on all Initial Term Loans of each First Amendment Non-Consenting Lender shall have been paid in full by the assignee Lender or the Parent Borrower, as applicable, to such First Amendment Non-Consenting Lender in accordance with Section 10.12(f) of the Credit Agreement.

 

  

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C.  

	
Other Terms.

 

1. Terms Related to Replacement

 

. The parties hereto agree that (i) the Interest Periods applicable to the outstanding Initial Term Loans as of the First Amendment Effective Date shall not be affected by this First Amendment and (ii) the Parent Borrower is exercising its rights under Sections 3.03 and 10.12(f) of the Credit Agreement in connection with this First Amendment to require any First Amendment Non-Consenting Lender to assign all of its interests, rights and obligations under the Loan Documents to one or more assignees identified by the Parent Borrower or the Administrative Agent, and the Administrative Agent shall coordinate the transfer of all such Initial Term Loans of each such First Amendment Non-Consenting Lender to the identified assignees, which transfers shall be effected in accordance with Sections 10.06 and 10.12(f) of the Credit Agreement and shall be effective as of the First Amendment Effective Date, and each assignee acquiring Initial Term Loans in connection with such transfers shall have provided a signature page to this First Amendment consenting hereto with respect to such acquired Initial Term Loans.

 

2. Credit Party Certifications

 

. By execution of this First Amendment, each of the undersigned hereby certifies, on behalf of the applicable Credit Party and not in his/her individual capacity, that as of the First Amendment Effective Date:

 

(i) each Credit Party has the corporate or other organizational power and authority to execute and deliver this First Amendment and carry out the terms and provisions of this First Amendment and the Credit Agreement (as modified hereby) and has taken all necessary corporate or other organizational action to authorize the execution and delivery of this First Amendment and performance of this First Amendment and the Credit Agreement (as modified hereby);

 

(ii) each Credit Party has duly executed and delivered this First Amendment and each of this First Amendment and the Credit Agreement (as modified hereby) constitutes the legal, valid and binding obligation of such Credit Party enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law);

 

(iii) none of the execution and delivery by any Credit Party of this First Amendment, the performance by any Credit Party of this First Amendment and the Credit Agreement (as modified hereby) or the compliance with the terms and provisions hereof or thereof or the consummation of the transactions contemplated hereby (i) will contravene any provision of any law, statute, rule, regulation, order, writ, injunction or decree of any Governmental Authority applicable to such Credit Party or its properties and assets (including, healthcare regulatory laws), except as would not, reasonably be expected to have a Material Adverse Effect, (ii) will conflict with or result in any breach of, any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien (other than the Liens created pursuant to the Security Documents or Liens otherwise permitted under the Credit Agreement) upon any of the property or assets of such Credit Party pursuant to the terms of any contract, except as would not reasonably be expected to have a Material Adverse Effect or (iii) will breach any provision of the Organizational Documents of such Credit Party;

 

  

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(iv) the representations and warranties contained in the Credit Agreement (as modified hereby) and the other Loan Documents are true and correct in all material respects on and as of the First Amendment Effective Date (both before and after giving effect thereto) to the same extent as though made on and as of the First Amendment Effective Date, except to the extent such representations and warranties expressly 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

 

(v) no Default or Event of Default has occurred and is continuing or would result from the consummation of the transactions contemplated hereby.

 

3. Amendment, Modification and Waiver

 

. This First Amendment may not be amended, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of each of the parties hereto and in accordance with the provisions of Section 10.12 of the Credit Agreement.

 

4. Entire Agreement

 

. This First Amendment, the Credit Agreement (as modified hereby) and the other Loan Documents constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof.

 

5. Governing Law, Submission to Jurisdiction, Venue and Waiver of Jury Trial

 

. The provisions of Section 10.08 of the Credit Agreement are hereby deemed to be incorporated herein, mutatis mutandis.

 

6. Severability

 

. Any provision of this First Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

 

7. Counterparts

 

. This First Amendment may be executed in any number of counterparts (including by email “.pdf” or other electronic means) and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same agreement.  A set of counterparts executed by all the parties hereto shall be lodged with the Parent Borrower and the Administrative Agent.

 

  

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8. Reaffirmation.  By executing and delivering a counterpart hereof, (i) each Credit Party hereby agrees that, as of the First Amendment Effective Date and after giving effect to this First Amendment, all Obligations of the Parent Borrower shall be guaranteed pursuant to the Guaranty in accordance with the terms and provisions thereof and shall be secured pursuant to the Security Documents in accordance with the terms and provisions thereof; (ii) each Credit Party hereby (A) agrees that, notwithstanding the effectiveness of this First Amendment, as of the First Amendment Effective Date and after giving effect to this First Amendment, the Security Documents continue to be in full force and effect, (B) agrees as of the First Amendment Effective Date that all of the Liens and security interests created and arising under each Security Document remain in full force and effect on a continuous basis, and the perfected status and priority of each such Lien and security interest continues in full force and effect on a continuous basis, unimpaired, uninterrupted and undischarged, as collateral security for its Obligations under the Loan Documents (as modified hereby) to which it is a party, in each case, to the extent provided in, and subject to the limitations and qualifications set forth in, such Loan Documents (as amended by this First Amendment) and (C) as of the First Amendment Effective Date affirms and confirms all of its obligations and liabilities under the Credit Agreement (as modified hereby) and each other Loan Document (including this First Amendment), in each case, after giving effect to this First Amendment, including its guarantee of the Obligations and the pledge of and/or grant of a security interest in its assets as Collateral pursuant to the Security Documents to secure such Obligations, all as provided in the Security Documents, and acknowledges and agrees that as of the First Amendment Effective Date such obligations, liabilities, guarantee, pledge and grant continue in full force and effect in respect of, and to secure, such Obligations under the Credit Agreement (as modified hereby) and the other Loan Documents, in each case after giving effect to this First Amendment; and (iii) each Guarantor agrees that nothing in the Credit Agreement, this First Amendment or any other Loan Document shall be deemed to require the consent of such Guarantor to any future amendment to the Credit Agreement.

 

9. Assignments.  The Parent Borrower and the Administrative Agent hereby consent to each assignment of Initial Term Loans made by any First Amendment Non-Consenting Lender or Arranger (or Affiliate thereof) to any assignee (other than (i) any natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person) or (ii) any Disqualified Institution) in connection with the replacement of any First Amendment Non-Consenting Lender.

 

10. Miscellaneous.  This First Amendment shall constitute a Loan Document for all purposes of the Credit Agreement (as modified hereby) and the other Loan Documents.  The provisions of this First Amendment are deemed incorporated as of the First Amendment Effective Date into the Credit Agreement as if fully set forth therein.  Except as specifically amended by this Amendment, (i) the Credit Agreement and the other Loan Documents shall remain in full force and effect and (ii) the execution, delivery and performance of this Amendment shall not constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of any Agent or Lender under, the Credit Agreement or any of the other Loan Documents.

 

1. 

 

  

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IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this First Amendment as of the date first set forth above.

 

 

PGT INNOVATIONS, INC., as Parent Borrower and a Guarantor

 

By:                                                                      

Name:

 

Title:

 

PGT INDUSTRIES, INC., as a Guarantor

 

By:                                                                      

Name:

 

Title:

 

CGI WINDOWS AND DOORS HOLDINGS, INC., as a Guarantor

 

By:                                                                      

Name:

 

Title:

 

CGI WINDOWS AND DOORS, INC., as a Guarantor

 

By:                                                                      

Name:

 

Title:

 

WINDOOR INCORPORATED, as a Guarantor

 

By:                                                                      

Name:

 

Title:

 

LTE, LLC, as a Guarantor

 

By:                                                                      

Name:

 

Title:

 

  

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DEUTSCHE BANK AG NEW YORK BRANCH, as Administrative Agent

 

 

By:                                                                      

Name:

Title:

By:                                                                      

Name:

Title:

  

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IN WITNESS WHEREOF, the undersigned has caused this First Amendment to be executed as of the date first written above.

 

 

_______________________________________

 

(Please type or print legal name of Lender)

 

 

By:

 

Name:

 

Title:

 

[If a second signature is required]

 

 

By:

 

Name:

 

Title:

 

 

  

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