Document:

Exhibit 10.1

 

SUMMER INFANT, INC.

 

NON-QUALIFIED STOCK OPTION AGREEMENT
 (Inducement Grant)

 

Agreement

 

1.             Grant of Option.  This Non-Qualified Stock Option Agreement (this “Agreement”) evidences the grant by the Compensation Committee (the “Committee”) of the Board of Directors of Summer Infant, Inc., a Delaware corporation (the “Company”), as of July 13, 2016, (the “Date of Grant”) to Mark Messner (the “Holder”) of an option (the “Option”) to purchase up to 100,000 shares of the Company’s common stock, $0.0001 par value per share (the “Shares”), at an exercise price per share equal to $1.70 (the “Exercise Price”).  This Option is not granted pursuant to the Company’s 2012 Incentive Compensation Plan (the “Plan”) or any other share-based compensation plan of the Company in reliance on Nasdaq Marketplace Rule 5635(c)(4).  Nevertheless, the terms and conditions of the Plan are incorporated herein for all purposes and, except as otherwise set forth herein, this Option shall be treated as if it had been issued pursuant to the Plan.  The Holder hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all of the terms and conditions hereof and all applicable laws and regulations.

 

2.             Definitions.  Unless otherwise provided herein, terms used herein that are defined in the Plan and not defined herein shall have the meanings attributed thereto in the Plan.

 

3.             Exercise Schedule.  Except as otherwise provided in Sections 6 or 9 of this Agreement, the Option is exercisable in installments as provided below, which shall be cumulative. To the extent that the Option has become exercisable with respect to a percentage of Shares as provided below, the Option may thereafter be exercised by the Holder, in whole or in part, at any time or from time to time prior to the expiration of the Option as provided herein. The following table indicates each date (the “Vesting Date”) upon which the Holder shall be entitled to exercise the Option with respect to the percentage of Shares granted as indicated beside the date, provided that the Continuous Service of the Holder continues through and on the applicable Vesting Date:

 

	
Vesting Date
    	
 
    	
Percentage of Shares
   Becoming Available for
   Exercise
    	
 
    	
Cumulative Percentage
   Available
    	
 
    
	
First   Anniversary of Date of Grant
    	
 
    	
25
    	
%
    	
25
    	
%
    
	
Second   Anniversary of Date of Grant
    	
 
    	
25
    	
%
    	
50
    	
%
    
	
Third   Anniversary of Date of Grant
    	
 
    	
25
    	
%
    	
75
    	
%
    
	
Fourth   Anniversary of Date of Grant
    	
 
    	
25
    	
%
    	
100
    	
%
    

 

Except as otherwise specifically provided herein, there shall be no proportionate or partial vesting in the periods prior to each Vesting Date, and all vesting shall occur only on the appropriate Vesting Date. Upon the termination of the Holder’s employment with the Company and its Subsidiaries, any unvested portion of the Option shall terminate and be null and void.

 

 

4.             Method of Exercise.  The vested portion of this Option shall be exercisable in whole or in part in accordance with the exercise schedule set forth in Section 3 hereof by written notice which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised, and such other representations and agreements as to the Holder’s investment intent with respect to such Shares as may be required by the Company.  Such written notice shall be signed by the Holder and shall be delivered in person or by certified mail to the Secretary of the Company.  The written notice shall be accompanied by payment of the Exercise Price.  This Option shall be deemed to be exercised after both (a) receipt by the Company of such written notice accompanied by the Exercise Price and (b) arrangements that are satisfactory to the Committee in its sole discretion have been made for Holder’s payment to the Company of the amount, if any, that is necessary to be withheld in accordance with applicable Federal or state withholding requirements.  No Shares shall be issued pursuant to the Option unless and until such issuance and such exercise shall comply with all relevant provisions of applicable law, including the requirements of any stock exchange upon which the Shares then may be traded.

 

5.             Method of Payment.  Payment of the Exercise Price shall be by any of the following, or a combination thereof, at the election of the Holder:  (a) cash; (b) check; (c) to the extent permitted by the Committee, with Shares owned by the Holder, or the withholding of Shares that otherwise would be delivered to the Holder as a result of the exercise of the Option, or (d) such other consideration or in such other manner as may be determined by the Committee in its absolute discretion.

 

6.             Termination of Option.  Any unexercised portion of the Option shall automatically and without notice terminate and become null and void at the time of the earliest to occur of the following:

 

(a)           On the 90th day following termination of the Holder’s Continuous Service, if the Holder’s Continuous Service terminates (other than upon the Holder’s death or Disability or by the Company for Cause);

 

(b)           immediately upon the termination of the Holder’s Continuous Service by the Company or any of its Subsidiaries for Cause;

 

(c)           twelve months after the date on which the Holder’s Continuous Service is terminated by reason of Disability;

 

(d)           twelve months after the date of termination of the Holder’s Continuous Service by reason of the death of the Holder;

 

(e)           The tenth anniversary of the date of grant; or

 

(f)            in the event of the liquidation or dissolution of the Company.

 

For purpose of this Section 6, the terms “Cause” and “Disability” shall have the meanings set forth in the Employment Agreement by and between the Company and the Holder dated as of June 27, 2016.

 

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7.             Transferability.  Unless otherwise determined by the Committee, the Option granted hereby is transferable only as set forth in the Plan. In addition, the Option shall not be assigned, negotiated, pledged or hypothecated in any way (whether by operation of law or otherwise), and the Option shall not be subject to execution, attachment or similar process. Upon any attempt to transfer, assign, negotiate, pledge or hypothecate the Option, or in the event of any levy upon the Option by reason of any execution, attachment or similar process contrary to the provisions hereof, the Option shall immediately become null and void.  The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Holder.

 

8.             No Rights of Stockholders.  Neither the Holder nor any personal representative (or beneficiary) shall be, or shall have any of the rights and privileges of, a stockholder of the Company with respect to any Shares purchasable or issuable upon the exercise of the Option, in whole or in part, prior to the date of exercise of the Option.

 

9.             Acceleration of Exercisability of Option.  The Committee shall have the power to accelerate exercisability and/or vesting of any Option granted upon a Change in Control or upon the death or Disability or termination of Continuous Service of the Holder.  In furtherance of such power, the Committee may accelerate the time at which an Option may be first exercised or the time during which an Option or any part thereof will vest.

 

10.          No Right to Continued Employment.  Neither the Option nor this Agreement shall confer upon the Holder any right to continued employment or service with the Company or any of its Subsidiaries.

 

11.          Law Governing.  This Agreement shall be governed in accordance with and governed by the internal laws of the State of Delaware.

 

12.          Interpretation. This Agreement incorporates all the terms, conditions and provisions of the Plan, including, without limitation, the amendment provisions thereof. The Holder accepts the Option subject to all of the terms and provisions of the Plan and this Agreement.  The undersigned Holder hereby accepts as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under this Agreement, unless shown to have been made in an arbitrary and capricious manner.

 

13.          Notices.  Any notice under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally or when deposited in the United States mail, registered, postage prepaid, and addressed, in the case of the Company, to the Company’s Secretary at 1275 Park East Drive, Woonsocket, RI 02895, or if the Company should move its principal office, to such principal office, and, in the case of the Holder, to the Holder’s last permanent address as shown on the Company’s records, subject to the right of either party to designate some other address at any time hereafter in a notice satisfying the requirements of this Section 13.

 

14.          Section 409A.  It is intended that the Option awarded pursuant to this Agreement be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”).  The provisions of this Agreement shall be interpreted in a manner consistent with this intention, and the provisions of this Agreement may not be amended, adjusted, assumed or substituted for,

 

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converted or otherwise modified without the Holder’s prior written consent if and to the extent that such amendment, adjustment, assumption or substitution, conversion or modification would cause the award to violate the requirements of Section 409A.  In the event that either the Company or the Holder believes, at any time, that any benefit or right under this Agreement is subject to Section 409A, then the Committee (acting alone and without any required consent of the Holder) may amend this Agreement in such manner as the Committee deems necessary or appropriate to be exempt from or otherwise comply with the requirements of Section 409A (including without limitation, amending the Agreement to increase the Exercise Price to such amount as may be required in order for the Option to be exempt from Section 409A).

 

Notwithstanding the foregoing, the Company does not make any representation to the Holder that the Option awarded pursuant to this Agreement is exempt from, or satisfies, the requirements of Section 409A, and the Company shall have no liability or other obligation to indemnify or hold harmless the Holder or any Beneficiary for any tax, additional tax, interest or penalties that the Holder or any Beneficiary may incur in the event that any provision of this Agreement, or any amendment or modification thereof or any other action taken with respect thereto, is deemed to violate any of the requirements of Section 409A.

 

[Signature page follows]

 

4

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the 14th day of July, 2016.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
SUMMER   INFANT, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark Strozik
    
	
 
    	
Name:   Mark Strozik
    
	
 
    	
Title:  SVP / Human Resources
    

 

 

The Holder acknowledges receipt of a copy of the Plan and represents that he or she has reviewed the provisions of the Plan and this Agreement in their entirety, is familiar with and understands their terms and provisions, and hereby accepts this Option subject to all of the terms and provisions of the Plan and the Agreement.  The Holder further represents that he or she has had an opportunity to obtain the advice of counsel prior to executing this Agreement.

 

	
Dated:
    	
7-15-16
    	
 
    	
HOLDER:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Mark Messner
    
	
 
    	
 
    	
 
    	
Mark   Messner
    

 

5Exhibit 10.35

 

[EXECUTION COPY]

 

FIRST AMENDMENT TO
 CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of August 31, 2011 (this “Amendment”), to the Existing Credit Agreement (as defined below) is among SEAGATE TECHNOLOGY PUBLIC LIMITED COMPANY, an Irish public limited company (“STX”), SEAGATE HDD CAYMAN, an exempt limited liability company organized under the laws of the Cayman Islands (the “Borrower”) and the Lenders (such capitalized term, and other terms used in this preamble or the recitals to have the meanings provided in Section 1.2) parties hereto.

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Credit Agreement, dated as of January 18, 2011 (as amended, supplemented, amended and restated or otherwise modified prior to the date hereof, the “Existing Credit Agreement”), among STX, the Borrower, the Lenders and The Bank of Nova Scotia as the Administrative Agent, the Lenders have agreed to make Loans and the Issuing Banks have agreed to issue Letters of Credit to the Borrower;

 

WHEREAS, the Borrower has requested, subject to the terms and conditions hereinafter set forth, that the Lenders amend the Existing Credit Agreement in certain respects as provided below; and

 

WHEREAS, the Lenders have agreed to such amendments on the terms and conditions contained in this Amendment.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE I
 DEFINITIONS

 

SECTION 1.1. Certain Definitions. The following terms (whether or not underscored) when used in this Amendment shall have the following meanings (such meanings to be equally applicable to the singular and plural form thereof):

 

“Amendment” is defined in the preamble.

 

“Borrower” is defined in the preamble.

 

“Existing Credit Agreement” is defined in the first recital.

 

“First Amendment Effective Date” is defined in Section 3.1.

 

“STX” is defined in the preamble.

 

SECTION 1.2. Existing Credit Agreement Defined Terms. Unless otherwise defined herein or the context otherwise requires, terms defined in the Existing Credit Agreement and used in this Amendment shall have the meanings given to them in the Existing Credit Agreement.

 

 

ARTICLE II
 AMENDMENTS

 

Effective on the First Amendment Effective Date, the Existing Credit Agreement is hereby amended in accordance with the terms of this Article.

 

SECTION 2.1. Amendment to Article I. Article I of the Existing Credit Agreement is hereby amended in accordance with Section 2.1.1.

 

SECTION 2.1.1. Clause (b) of the definition of “Obligations” is hereby amended in it is entirety to read as follows:

 

“(b) unless otherwise agreed to in writing by the applicable Lender or Affiliate of a Lender party thereto, the due and punctual payment of all obligations of the Borrower or any other Loan Party under each Swap Agreement (it being understood that, for purposes of this clause (b), the term “Swap Agreement” shall not include Platinum Leases or Swap Agreements permitted under clause (c)(i)(B)  or clause (c)(ii) of Section 6.06) that (i) is in effect on the Effective Date with a counterparty that is a Lender (or an Affiliate of a Lender) as of the Effective Date or (ii) is entered into after the Effective Date with any counterparty that is a Lender (or an Affiliate of a Lender) at the time such Swap Agreement is entered into”

 

SECTION 2.2. Amendment to Article VI. Article VI of the Existing Credit Agreement is hereby amended in accordance with Section 2.2.1.

 

SECTION 2.2.1. Section 6.06 of the Existing Credit Agreement is hereby amended in its entirety to read as follows:

 

SECTION 6.06 Swap Agreements. Each of STX and the Borrower will not, and will not permit any of its subsidiaries to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks to which STX, the Borrower or any Subsidiary has actual exposure, (other than those in respect of Equity Interests of STX, the Borrower or any Subsidiary, which shall be governed by clause (c) of this Section), (b) Swap Agreements entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate or otherwise) with respect to any interest-bearing liability or investment of STX, the Borrower or any Subsidiary, or (c)(i) Swap Agreements entered into by STX, the Borrower or any Subsidiary, and payments (in either cash or Equity Interests as applicable) required thereunder, (A) in respect of Equity Interests in STX providing for payments to current or former directors, officers or employees of STX, the Borrower and any Subsidiary or their heirs or estates and (B) in respect of Equity Interests in STX, the Borrower or any Subsidiary in connection with any redemption or repurchase by STX of its Equity Interests, and (ii) to the extent not permitted under clause (c)(i), any other Swap Agreements entered into by STX, the Borrower or any Subsidiary, and payments (in

 

 

either cash or Equity Interests as applicable) required thereunder in respect of Equity Interests in STX; provided, that Restricted Payments required by the Swap Agreements entered into in reliance on this clause (c) shall only be made in the same circumstances under which, and in the amounts that, STX, the Borrower and the Subsidiaries are then permitted to make Restricted Payments pursuant to Section 6.07, and such Restricted Payments made during any fiscal year shall be deemed to reduce the amount of Restricted Payments available during such fiscal year under Section 6.07.

 

ARTICLE III
 CONDITIONS TO EFFECTIVENESS

 

SECTION 3.1. This Amendment shall become effective upon the date (the “First Amendment Effective Date”) when each of the following conditions set forth in this Article shall have been satisfied.

 

SECTION 3.1.1. Execution of Counterparts. The Administrative Agent shall have received copies of this Amendment, duly executed and delivered by an authorized officer or representative of STX and of the Borrower and on behalf of the Required Lenders.

 

SECTION 3.1.2. Fees and Expenses. The Administrative Agent shall have received all of its reasonable and documented fees and out-of-pocket expenses incurred in connection with the negotiation, preparation, execution and delivery of this Amendment, including (to the extent invoiced in advance) reasonable fees and disbursements of Orrick, Herrington & Sutcliffe LLP, counsel to the Administrative Agent.

 

ARTICLE IV
 MISCELLANEOUS PROVISIONS

 

SECTION 4.1. Representations and Warranties. To induce the Lenders to enter into this Amendment STX and the Borrower represent and warrant to the Administrative Agent and the Lenders that as of the First Amendment Effective Date:

 

(a)        The representations and warranties of each Loan Party set forth in the Loan Documents to which it is a party are true and correct in all material respects 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 were true and correct in all material respects as of such earlier date).

 

(b)        As of the First Amendment Effective Date, both before and after giving effect to this Amendment, no Default has occurred and is continuing.

 

SECTION 4.2. Effect of Amendment. The parties hereto agree as follows:

 

(a)        This Amendment shall not constitute an amendment or waiver of or consent to any provision of the Existing Credit Agreement or any other Loan Document not expressly referred to herein and shall not be construed as an amendment, waiver or consent to any action on the part of a Borrower that would require an amendment, waiver or consent of the

 

 

Administrative Agent or the Lenders under any of the Loan Documents except as expressly stated herein. Except as expressly amended hereby, the provisions of the Existing Credit Agreement and the Loan Documents shall remain unchanged and shall continue to be, and shall remain, in full force and effect in accordance with their respective terms.

 

(b)        On and after the First Amendment Effective Date, each reference in the Existing Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference to the Existing Credit Agreement in any other Loan Document shall be deemed a reference to the Existing Credit Agreement as amended hereby. This Amendment, executed pursuant to the Existing Credit Agreement, shall constitute a “Loan Document” for all purposes of the Existing Credit Agreement and the other Loan Documents and shall be construed, administered and applied in accordance with all of the terms and provisions of the Credit Agreement.

 

SECTION 4.3. Fees and Expenses. The Borrower agrees to reimburse the Administrative Agent for its reasonable and documented out-of-pocket expenses in connection with this Amendment, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent.

 

SECTION 4.4. Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

SECTION 4.5. Headings. The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

 

SECTION 4.6. Counterparts. This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts (including by facsimile or electronic copy), each of which when so executed and delivered shall be deemed an original and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

SECTION 4.7. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

 

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

 

 

	
 
    	
SEAGATE   TECHNOLOGY PUBLIC LIMITED COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ [illegible]
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SEAGATE HDD   CAYMAN
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ [illegible]
    
	
 
    	
 
    	
Title:
    

 

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE BANK OF NOVA SCOTIA
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ [illegible]
    
	
 
    	
 
    	
Title: Managing Director
    

 

 

	
 
    	
Bank of America   N.A.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ [illegible]
    
	
 
    	
 
    	
Title: Director
    

 

 

	
 
    	
 
    
	
 
    	
BNP Paribas
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mathew   Harvey
    
	
 
    	
 
    	
Name: Mathew Harvey
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title: Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BNP Paribas
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Fiona   Buckley
    
	
 
    	
 
    	
Name: Fiona   Buckley
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title: Vice President
    

 

 

	
 
    	
 
    
	
 
    	
Morgan Stanley Bank N.A
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ [illegible]
    
	
 
    	
 
    	
Title:   Authorized Signatory
    

 

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Wells Fargo Bank N.A.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Susan T.   Gallagher
    
	
 
    	
 
    	
Susan T.   Gallagher
    
	
 
    	
 
    	
Director

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