Document:

exhibit101tlamendmentwit

                                                                 EXHIBIT 10.1                                                                        THIRD AMENDMENT                    TO CREDIT AND GUARANTY AGREEMENT                THIRD AMENDMENT (this “Agreement”) dated as of October 24, 2019 among  BlueLinx Holdings Inc. (the “Borrower”), the “Guarantors” referred to on the signature pages  hereto, the Lenders executing this Agreement on the signature pages hereto and HPS  INVESTMENT PARTNERS, LLC, in its capacity as Administrative Agent (the “Administrative  Agent”) under the Credit Agreement referred to below.               WHEREAS, the Borrower, the Guarantors party thereto, the Lenders party thereto  and the Administrative Agent are parties to that certain Credit and Guaranty Agreement, dated as  of April 13, 2018 (as amended, restated, supplemented, or otherwise modified from time to time,  the “Credit Agreement”).                WHEREAS, the Credit Parties, the Lenders party hereto constituting the Requisite  Lenders and the Administrative Agent desire to amend the Credit Agreement on the terms set forth  herein.               NOW THEREFORE, in consideration of the premises and covenants contained  herein and for other good and valuable consideration, the receipt and sufficiency of which are  hereby acknowledged, the parties hereto hereby agree as follows:               Section 1.  Definitions.  Except as otherwise defined in this Agreement, terms  defined in the Credit Agreement, after giving effect to this Agreement, are used herein as defined  therein.  This Agreement shall constitute a Credit Document for all purposes of the Credit  Agreement and the other Credit Documents.               Section 2.  Amendments.  Subject to the satisfaction of the conditions precedent  specified in Section 4 below, effective as of the Third Amendment Effective Date, the Credit  Agreement is hereby amended as follows:                       (a)   The following new definitions shall be added to Section 1.1 of the        Credit Agreement in the appropriate alphabetical order:                   “Average Availability” means, as of any date, the sum of the              aggregate amount of “Excess Availability” (as defined in the ABL              Credit Agreement) for each of the 10 consecutive Business Days              immediately preceding such date (as calculated by the Borrower as              of the end of each respective day) divided by ten.                   “Other Leaseback Transactions” means any Sale and             Leaseback Transaction in respect of real property following the             Third Amendment Effective Date.  

 

                         “Permitted Leaseback Transactions” means each of the               2019 Leaseback Transactions and the Other Leaseback               Transactions.                    “Specified Properties Payment Threshold” means, as of any               date of determination, an Average Availability equal to or greater               than $80,000,000.                    “Third Amendment”  means that certain Third Amendment               to Credit and Guaranty Agreement, dated as of the Third               Amendment Effective Date, by and among the Borrower, the               “Guarantors” referred to the on the signature pages thereto, the               Lenders party thereto and the Administrative Agent.                    “Third Amendment Effective Date” October 24, 2019.                    “Third Amendment Fee Letter” means that certain Fee               Letter dated as of the Third Amendment Effective Date among the               Borrower and the Administrative Agent.                      (b)   The definition of “2019 Leaseback Transactions” shall be restated         in its entirety as follows:                     ““2019 Leaseback Transactions” means one or more Sale and               Leaseback Transactions in respect of the 2019 Leaseback               Properties.”                      (c)   The definition of “Applicable Make-Whole Amount” shall be  restated in its entirety as follows:                    ““Applicable Make-Whole Amount” means, with respect to              any repayment or prepayment of the Loans (other than (i) any              prepayment made with proceeds of a 2019 Leaseback Transaction to              the extent set forth in clause (B) of the proviso to Section 2.11, (ii) a              prepayment made with the proceeds of the Specified Properties to the              extent set forth in clause (C)(1) of the proviso to Section 2.11 and              (iii) to the extent set forth in clause (D) of the proviso to Section              2.11), an amount equal to the amount of interest that would have been              paid on the principal amount of the Loans being so repaid or prepaid              for the period from and including the date of such repayment or              prepayment to but excluding the date that is the one (1) year              anniversary of the Second Amendment Effective Date (in each case,              calculated on the basis of the interest rate with respect to the Loans              that is in effect on the date of such repayment or prepayment and on              the basis of actual days elapsed over a year of three hundred sixty-             five (365) days).”                                       2 

 

                                            (d)   The definition of “Asset Sale” shall be amended by replacing the  final sentence thereof with the following:             “Each Permitted Leaseback Transaction shall constitute an        Asset Sale.”               (e)   The definition of “Attributable Indebtedness” shall be restated in its  entirety as follows:              ““Attributable Indebtedness” means, when used with       respect to any Permitted Leaseback Transaction, as at the time of       determination, the present value (discounted at a rate equivalent to       Borrower’s then-current weighted average cost of funds for        borrowed money as at the time of determination, compounded on a        semi-annual basis) of the total obligations of the lessee for rental        payments during the remaining term of the lease included in any        such Permitted Leaseback Transaction.”               (f)   The definition of “Credit Document” shall be restated in its entirety  as follows:              ““Credit Document” means any of this Agreement, the        Notes, if any, the Collateral Documents, the Second Amendment        Fee Letter, the Third Amendment Fee Letter, and all other        documents, certificates, instruments or agreements executed and        delivered by or on behalf of a Credit Party for the benefit of the        Administrative Agent or any Lender in connection with this        Agreement on or after the date hereof.”               (g)   The definition of “Real Property Capital Leases” shall be restated in  its entirety as follows:              ““Real Property Capital Leases” means (i) each Capital        Lease obligation or financing obligation with respect to Real Estate        Assets set forth on Schedule 6.1(a) and (ii) any future lease of (or        any agreement conveying the right to use) any Real Estate Asset by        such Person as lessee which is permitted under Section 6.1(i) and        which, in accordance with GAAP, is or is required to be reflected as        a capital lease on the balance sheet of such Person; provided, that,        for purposes of calculating compliance with the Total Net Leverage        Ratio, any lease or financing permitted hereunder occurring after the        Closing Date that (a) involves any Real Estate Asset and (b) that        arises out of a Permitted Leaseback Transaction, shall be excluded        from clause (i)(A) of the calculation of the Total Net Leverage        Ratio, in the case of each of clause (i) and (ii) above,                                 3 

 

                                       notwithstanding any accounting treatment that may be required         under GAAP.”                (h)   The definition of Sale and Leaseback Transaction” shall be restated  in its entirety as follows:               ““Sale and Leaseback Transaction” means any transaction        pursuant to which a Credit Party or any of its Subsidiaries, directly        or indirectly, becomes or remains liable as lessee or as a guarantor or         other surety with respect to any lease of any property (whether real,         personal or mixed), whether now owned or hereafter acquired, which         a Credit Party (a) has sold or transferred or is to sell or to transfer to         any other Person, or (b) intends to use for substantially the same         purpose as any other property which has been or is to be sold or         transferred by a Credit Party to any Person in connection with such         lease.”                (i)   Section 1.4 of the Credit Agreement shall be amended by adding the   following clause (e) immediately following clause (d) thereof:                “(e)   Notwithstanding anything to the contrary contained         herein, for purposes of determining compliance with the financial         covenant set forth in Section 6.7, (i) in the event that the outstanding         principal balance of the Loans is greater than $95,298,863.91 on         January 31, 2020, (A) the ratios required to comply with Section 6.7         for the Fiscal Quarter ending on December 28, 2019 and each Fiscal         Quarter ending thereafter shall revert to the ratios set forth for such         Fiscal Quarters in Section 6.7 immediately prior to the Third         Amendment Effective Date (and the effectiveness of the         amendments to Section 6.7 pursuant to the Third Amendment shall         automatically terminate and be unwound), (B) the $10,000,000 cap         set forth in clause (a) of the definition of “Consolidated Net Income”         shall be reduced to zero and no adjustments to Consolidated         EBITDA shall be permitted to be made under sub-clauses (vi) and         (xiv) of clause (a) of the definition of “Consolidated EBITDA”         (which amounts under such sub-clauses shall be deemed to be zero),         in each case, for purposes of calculating the Total Net Leverage         Ratio for the Fiscal Quarter ending on December 28, 2019 and each         Fiscal Quarter ending thereafter, and (C) the Borrower shall no         longer be permitted to exercise the cure rights set forth in Section         8.3 hereof, and (ii) in the event that the Borrower has made         voluntary prepayments of the Loans under Section 2.9 and/or         mandatory prepayments of the Loans under Section 2.10(a) or         2.10(c) in an aggregate principal amount of at least $50,925,000         during the period commencing on the Third Amendment Effective         Date and ending on January 31, 2020, the principal amount of the                                 4 

 

                                      Loans included in Consolidated Total Debt for purposes of        calculating the Total Net Leverage Ratio for the Fiscal Quarter        ending December 28, 2019 shall be deemed to be the principal        amount of the Loans outstanding as of January 31, 2020.”               (j)   Section 2.10(a) of the Credit Agreement shall be restated in its  entirety as follows:               “(a)  Asset Sales.  Not later than the fifth Business Day        following the date of receipt by the Borrower or any of its        Subsidiaries of any Net Asset Sale Proceeds (other than from (x) the        sale of any Specified Properties after the Third Amendment        Effective Date and (y) Permitted Leaseback Transactions), the        Borrower shall prepay the Loans in an aggregate amount equal to        such Net Asset Sale Proceeds, together with accrued interest thereon        and any premium payable pursuant to Section 2.11; provided that (i)        to the extent any such Net Asset Sale Proceeds constitute proceeds        of ABL Priority Collateral (including the portion of Net Asset Sale        Proceeds constituting proceeds of ABL Priority Collateral from an        Asset Sale of the Equity Interests of any Credit Party that owns ABL        Priority Collateral), then the mandatory prepayment pursuant to this        Section 2.10(a) with respect to Net Asset Sale Proceeds constituting        proceeds of ABL Priority Collateral shall be in an amount equal to        100% of such Net Asset Sale Proceeds minus the amount of such        Net Asset Sale Proceeds that are then required to be used to prepay        Indebtedness under the ABL Credit Agreement, and (ii) (A) so long        as no Default or Event of Default shall have occurred and be        continuing, and (B) to the extent that (x) such Net Asset Sale        Proceeds consist of proceeds of the sale of Specified Properties prior        to the Third Amendment Effective Date, or (y) the Net Asset Sale        Proceeds (other than from the sale of any Specified Properties)        reinvested in accordance with this Section 2.10(a) from the Closing        Date through the applicable date of determination, together with the        aggregate amount of Net Insurance/Condemnation Proceeds        reinvested in accordance with Section 2.10(b) and Net        Extraordinary Receipts reinvested in accordance with Section        2.10(f), do not exceed $15,000,000 in the aggregate, then, in each        case, Borrower shall have the option, directly or through one or more        of its Subsidiaries, to invest (or commit to invest) all or a portion of        such Net Asset Sale Proceeds in long-term productive assets of the        general type used in the business of the Borrower and its        Subsidiaries within twelve (12) months of receipt thereof (or, if        committed to be reinvested within such twelve (12) month period,       within six (6) months of such twelve (12) month period); provided       that with respect to any Net Asset Sale Proceeds from the sale of any       Specified Property prior to the Third Amendment Effective Date,                                5 

 

                                      such permitted reinvestment period shall end on January 30, 2020.         For the avoidance of doubt, any Net Asset Sale Proceeds not so        invested during such twelve (12) month period (or, (x) in the case of        commitments, within six (6) months of such twelve (12) month        period and (y) in the case of Net Asset Sale Proceeds from the sale        of any applicable Specified Property, by January 30, 2020) shall be        required to be used to make a mandatory prepayment of the Loans        on the Business Day after such period ends. Notwithstanding the        foregoing provisions of this Section 2.10(a), the Net Asset Sale        Proceeds of (I) any Specified Property sold after the Third        Amendment Effective Date and (II) any Permitted Leaseback        Transaction shall be excluded from the requirements of this        Section 2.10(a) and shall instead be required to repay the Loans and        applied in accordance with Section 2.10(c) of this Agreement.”               (k)   Section 2.10(c) of the Credit Agreement shall be restated in its  entirety as follows:               “(c)  Proceeds of Sale and Leaseback Transaction;        Specified Properties. Not later than two (2) Business Days after        receipt of the Net Asset Sale Proceeds of any Permitted Leaseback        Transaction or, to the extent sold after the Third Amendment        Effective Date, any Specified Property, the Borrower shall apply        such Net Asset Sale Proceeds as follows:               (i)   in the case of 2019 Leaseback Transactions made              prior to the Third Amendment Effective Date, (A) the first              $30,000,000 of Net Asset Sale Proceeds for all 2019              Leaseback Transactions shall be paid to the Administrative              Agent, for the account of the Lenders, for application to the              prepayment of the principal amount of the Loans, together              with accrued interest thereon and the Prepayment Premium              payable pursuant to Section 2.11; and (B) thereafter, any              remaining Net Asset Sale Proceeds in an aggregate amount in              excess of $30,000,000 for all 2019 Leaseback Transactions,              after giving effect to the payments specified in the foregoing              clause (i)(A), shall be applied to repay Indebtedness under the              ABL Credit Agreement;                (ii)  all Net Asset Sale Proceeds from Other Leaseback              Transactions shall be paid to the Administrative Agent, for              the account of the Lenders, for application to the prepayment              of the principal amount of the Loans, together with accrued              interest thereon and any Prepayment Premium applicable              thereto; provided that the aggregate amount required to be              paid pursuant to this clause (c)(ii) from and after February 1,                                6 

 

                                            2020 shall be reduced by an amount equal to $40,000,000              minus the aggregate Net Asset Sale Proceeds that the              Borrower has paid pursuant to this clause (c)(ii) during the              period from the Third Amendment Effective Date through              and including January 31, 2020 (which amount shall in no              event be less than $0); and               (iii) all Net Asset Sale Proceeds from Specified Properties              sold after the Third Amendment Effective Date shall be paid              to the Administrative Agent, for the account of the Lenders,              for application to the prepayment of the principal amount of              the Loans, together with accrued interest thereon and any              Prepayment Premium applicable thereto; provided that,              notwithstanding the foregoing, with respect to the first              $10,000,000 of Net Asset Sale Proceeds from Specified              Properties received by the Borrower after January 31, 2020              (A) if, as of the date of receipt of any such Net Asset Sale              Proceeds, the Specified Properties Payment Threshold is not              satisfied, 100% of such Net Asset Sale Proceeds shall be used              to repay Indebtedness under the ABL Credit Agreement, and              (B) if, as of the date of receipt of any such Net Asset Sale              Proceeds, the Specified Properties Payment Threshold is              satisfied, 50% of such Net Asset Sale Proceeds shall be used              to repay Indebtedness under the ABL Credit Agreement, with              the remainder to be paid to the Administrative Agent, for the              account of the Lenders, for application to the prepayment of             the principal amount of the Loans, together with accrued             interest thereon and any Prepayment Premium applicable             thereto (and thereafter all such Net Asset Sale Proceeds in              excess of $10,000,000 shall be paid to the Administrative              Agent, for the account of the Lenders, for application to the              prepayment of the principal amount of the Loans, together              with accrued interest thereon and any Prepayment Premium              applicable thereto).”               (l)   Section 2.11 of the Credit Agreement shall be restated in its entirety  as follows:                     “2.11 Prepayment Premium.  In the event that all        or any portion of the Loans is repaid or prepaid for any reason        (including as a result of any mandatory prepayments, voluntary        prepayments, payments made following acceleration of the Loans        or after an Event of Default but excluding payments of the purchase        price in connection with an assignment of the Loans made pursuant        to Section 2.20(b)) prior to the fourth anniversary of the Second        Amendment Effective Date, such repayments or prepayments will                                7 

 

                                be made together with a premium equal to (i) 3.00% of the amount  repaid or prepaid and accompanied by the Applicable Make-Whole  Amount as of the date of such repayment or prepayment, if such  repayment or prepayment occurs on or prior to the first anniversary  of the Second Amendment Effective Date, (ii) 3.00% of the amount  repaid or prepaid, if such repayment or prepayment occurs after the  first anniversary of the Second Amendment Effective Date but on or  prior to the second anniversary of the Second Amendment Effective  Date, (iii) 2.00% of the amount repaid or prepaid, if such repayment  or prepayment occurs after the second anniversary of the Second  Amendment Effective Date but on or prior to the third anniversary  of the Second Amendment Effective Date and (iv) 1.00% of the  amount repaid or prepaid, if such repayment or prepayment occurs  after the third anniversary of the Second Amendment Effective Date  but on or prior to the fourth anniversary of the Second Amendment  Effective Date (the foregoing premiums (including the Applicable  Make-Whole Amount), the “Prepayment Premium”); provided  that                (A)   the Prepayment Premium shall not apply to  (1) scheduled amortization Installment payments made by Borrower  pursuant to Section 2.8, (2) mandatory prepayments by Borrower  pursuant to Section 2.10(b), Sections 2.10(e), 2.10(f) and 2.10(g),  and (3) mandatory prepayments by Borrower pursuant to Sections  2.10(a) and 2.10(c) not exceeding $15,000,000 in the aggregate  prior to the Third Amendment Effective Date,                (B)   in the case of mandatory prepayments by  Borrower with the Net Asset Sale Proceeds of a 2019 Leaseback  Transaction pursuant to Section 2.10(c) made prior to the Third  Amendment Effective Date, the Applicable Make-Whole Amount  component of the Prepayment Premium shall not apply and such  prepayments will be made together with a premium equal to 3.00%  of the amount prepaid in lieu of any other Prepayment Premium  (except to the extent permitted by the immediately preceding clause  (A)(3)),                (C)   in the case of prepayments of the Loans made  with the proceeds of the Specified Properties made on or prior to the  first anniversary of the Second Amendment Effective Date, (1) for  the first $25,000,000 of such prepayments of the Loans, the  Applicable Make-Whole Amount component of the Prepayment  Premium shall not apply and such prepayments will be made  together with a premium equal to 3.00% of the amount prepaid in  lieu of any other Prepayment Premium, and (2) for such  prepayments of the Loans in excess of the amount specified in the                          8 

 

                                 immediately preceding sub-clause (1), the Prepayment Premium  (including the Applicable Make-Whole Amount component  thereof) shall apply, and                (D)   for the first $50,925,000 of voluntary   prepayments of the Loans under Section 2.9 and/or mandatory   prepayments of the Loans under Section 2.10(a) or 2.10(c) made by   Borrower during the period commencing on the Third Amendment   Effective Date and ending on January 31, 2020, the Applicable   Make-Whole Amount component of the Prepayment Premium shall   not apply to such prepayments and such prepayments will be made   together with a premium equal to 3.00% of the amount prepaid in   lieu of any other Prepayment Premium.          If the Loans are accelerated or otherwise become due prior   to their maturity date, in each case, as a result of an Event of Default   (including upon the occurrence of a bankruptcy or insolvency event   (including the acceleration of claims by operation of law)), the   amount of principal of and premium on the Loans that becomes due   and payable shall equal 100% of the principal amount of the Loans   plus the Prepayment Premium in effect on the date of such   acceleration or such other prior due date, as if such acceleration or   other occurrence were a voluntary prepayment of the Loans   accelerated or otherwise becoming due.  Without limiting the   generality of the foregoing, it is understood and agreed that if the   Loans are accelerated or otherwise become due prior to their   maturity date, in each case, in respect of any Event of Default   (including upon the occurrence of a bankruptcy or insolvency event   (including the acceleration of claims by operation of law)), the   Prepayment Premium applicable with respect to a voluntary   prepayment of the Loans will also be due and payable on the date of   such acceleration or such other prior due date as though the Loans   were voluntarily prepaid as of such date and shall constitute part of   the Obligations, in view of the impracticability and extreme   difficulty of ascertaining actual damages and by mutual agreement   of the parties as to a reasonable calculation of each Lender’s loss as   a result thereof.  Any premium payable above shall be presumed to   be the liquidated damages sustained by each Lender and the   Borrower agrees that it is reasonable under the circumstances   currently existing.  THE BORROWER EXPRESSLY WAIVES   (TO THE FULLEST EXTENT IT MAY LAWFULLY DO SO)   THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE   OR LAW THAT PROHIBITS OR MAY PROHIBIT THE   COLLECTION OF THE PREPAYMENT PREMIUM IN   CONNECTION WITH ANY SUCH ACCELERATION. The   Borrower expressly agrees (to the fullest extent it may lawfully do                           9 

 

                     so) that: (A) the Prepayment Premium is reasonable and is the               product of an arm’s length transaction between sophisticated               business people, ably represented by counsel; (B) the Prepayment               Premium shall be payable notwithstanding the then prevailing               market rates at the time payment is made; (C) there has been a course               of conduct between the Lenders and the Borrower giving specific               consideration in this transaction for such agreement to pay the               Prepayment Premium; and (D) the Borrower shall be estopped               hereafter from claiming differently than as agreed to in this               paragraph.”                      (m)   Section 2.12(b) of the Credit Agreement shall be restated in its   entirety as follows:                      “(b)  Application of Mandatory Prepayments by Type of               Loans.  Any amount required to be paid pursuant to Sections 2.10(a)               through 2.10(g) shall be applied on a pro rata basis to the remaining              scheduled amortization Installments of principal of the Loans              (including the final payment).  Notwithstanding the foregoing, any              amount required to be paid pursuant to Section 2.10(c) shall be              applied to the remaining scheduled amortization Installments of              principal of the Loans (including the final payment) in inverse order              of maturity.”                      (n)   Section 6.1(i) of the Credit Agreement shall be restated in its entirety  as follows:                           “(i)  (x) Attributable Indebtedness with respect to              Permitted Leaseback Transactions, and (y) Indebtedness of the              Borrower or its Subsidiaries with respect to Capital Lease              obligations and purchase money obligations in an aggregate amount              not to exceed the greater of $30,000,000 and 29.0% of Consolidated              EBITDA as of the most recently ended Measurement Period;              provided that any such Indebtedness (i) is issued and any Liens              securing such Indebtedness are created within 180 days after the              acquisition, construction, lease or improvement of the asset              financed, and (ii) shall be secured only by the asset acquired in              connection with the incurrence of such Indebtedness;”                     (o)   Section 6.7 of the Credit Agreement shall be restated in its entirety  as follows:                “6.7  Financial Covenant.  The Total Net Leverage Ratio as of the last day of  any Fiscal Quarter (commencing with the Fiscal Quarter ending September 29, 2018) shall not  exceed the corresponding ratio set forth below:                                        10 

 

                                                    Fiscal Quarter      Total Net                         Ending         Leverage Ratio                    September 29, 2018   8.25 to 1.00                    December 29, 2018    6.75 to 1.00                      March 30, 2019     8.00 to 1.00                       June 29, 2019     8.25 to 1.00                    September 28, 2019   7.50 to 1.00                    December 28, 2019    6.25 to 1.00                      March 28, 2020     6.25 to 1.00                       June 27, 2020     6.50 to 1.00                    September 26, 2020   6.00 to 1.00                      January 2, 2021    5.25 to 1.00                       April 3, 2021     5.00 to 1.00                       July 3, 2021      4.75 to 1.00                      October 2, 2021    4.50 to 1.00                      January 1, 2022    4.25 to 1.00                       April 2, 2022     4.00 to 1.00                       July 2, 2022      3.75 to 1.00                        Thereafter       3.50 to 1.00                (p)   Section 6.8(e) of the Credit Agreement shall be restated in its  entirety as follows:                “(e) Dispositions of the Specified Properties, so long as        (i) the consideration received for such assets shall be (A) in an        amount at least equal to the Fair Market Value thereof and (B) paid        solely in Cash, and (ii) if such sale occurs after the Third        Amendment Effective Date, not later than two (2) Business Days        after receipt thereof, the Net Asset Sale Proceeds thereof shall be        applied to prepay the Loans pursuant to Section 2.10(c);”               (q)   Section 6.8(g) of the Credit Agreement shall be restated in its  entirety as follows:                     “(g)  Other Leaseback Transactions, so long as (A)        no Event of Default shall have occurred and be continuing, or would        result therefrom, (B) the consideration received therefor shall be (i)        in an amount at least equal to the Fair Market Value thereof        (determined in good faith by the Board of Directors of the Borrower                                 11 

 

                  (or similar governing body)) and (ii) paid solely in Cash, and (C) not              later than two (2) Business Days after receipt thereof, the Net Asset              Sale Proceeds thereof shall be applied to prepay the Loans to the             extent required pursuant to Section 2.10(c); and”                    (r)   Section 6.8(h) of the Credit Agreement shall be restated in its       entirety as follows:                          “(h)  the 2019 Leaseback Transactions made prior             to the Third Amendment Effective Date, so long as (A) no Event of             Default shall have occurred and be continuing, or would result             therefrom, and after giving effect to such transaction, the Borrower             shall be in Pro Forma Compliance (determined in accordance with             Section 1.4(d)) with Section 6.7 of the Credit Agreement for the             Measurement Period most recently ended, (B) such 2019 Leaseback             Transactions shall be completed within (x) six (6) months after the             Second Amendment Effective Date in the case of any Initial             Leaseback Property, provided that if the Borrower has entered into              a binding contract for the sale and leaseback of such Initial              Leaseback Property within six (6) months after the Second              Amendment Effective Date, the period specified in this sub-clause              (x) to consummate such 2019 Leaseback Transaction shall be              extended to nine (9) months after the Second Amendment Effective              Date, or (y) nine months of the Second Amendment Effective Date              in the case of any Other Leaseback Property, (C) the aggregate Fair              Market Value of all such properties sold in such 2019 Leaseback              Transactions does not exceed $50,000,000 and the consideration              received therefor shall be (i) in an amount at least equal to the Fair              Market Value thereof (determined in good faith by the Board of              Directors of the Borrower (or similar governing body)) and (ii) paid              solely in Cash, and (D) not later than two (2) Business Days after              receipt of the Net Asset Sale Proceeds of the 2019 Leaseback              Transactions, the Borrower shall apply the proceeds as required by              Section 2.10(c).”                      (s)   Section 6.8 of the Credit Agreement shall be amended by deleting  the following paragraph at the end thereof:                     “Notwithstanding the foregoing provisions of this Section 6.8 or the              provisions of Section 6.10 to the contrary, the 2019 Leaseback Transactions shall              be permitted to made under Section 6.8(h) but not any other clause of this              Section 6.8 or Section 6.10.”                     (t)   Section 6.10 of the Credit Agreement shall be restated in its entirety  as follows:                                         12 

 

                                 ““6.10 [Reserved].”                     (u)   Section 8.3(d) of the Credit Agreement shall be restated in its  entirety as follows:                       “(d) During the term of this Agreement, the Borrower              may not exercise the cure right set forth in this Section 8.3 (x) in              connection with any Event of Default in respect of Section 6.7 as of              the end of the Fiscal Quarter ending December 28, 2019 or (y) more              than three (3) times in the aggregate.”                Section 3.  Representations and Warranties.  Each Credit Party represents and   warrants to each Agent and the Lenders that, after giving effect to this Agreement, (a) the   representations and warranties set forth in Section 4 of the Credit Agreement, and in each of the   other Credit Documents, are true and complete in all material respects on the date hereof as if made   on and as of the date hereof (or, if any such representation or warranty is expressly stated to have   been made as of a specific date, such representation or warranty shall be true and correct as of such   specific date), and as if each reference in said Section 4 to “this Agreement” included reference to   the Credit Agreement  after giving effect to this Agreement and (b) no Default or Event of Default   has occurred and is continuing as of the date hereof.                Section 4.  Conditions Precedent.  The amendments set forth in Section 2   hereof shall each become effective, as of the date hereof (the “Third Amendment Effective Date”),   upon satisfaction of the following conditions:                      (a)   Execution.  The Administrative Agent shall have received        counterparts of (i) this Agreement executed by the Borrower, the Guarantors party to the        Credit Agreement and Lenders party to the Credit Agreement constituting the Requisite        Lenders and (ii) the Third Amendment Fee Letter executed by the Borrower.                      (b)   Corporate Authorizations.  The Administrative Agent shall have        received the following, in form and substance reasonably satisfactory to the Administrative        Agent resolutions of the board of directors or similar governing body of the Borrower        approving and authorizing the execution, delivery and performance of the Agreement as of        the date hereof, certified as of the date hereof by its secretary or an assistant secretary as        being in full force and effect without modification or amendment.                       (c)   Amendment Fee.  The Administrative Agent, for the account of each        Lender, shall have received the amendment fee specified in the Third Amendment Fee        Letter.                      (d)   Expenses.  The Borrower shall have paid all reasonable and        documented out-of-pocket fees, charges and disbursements due and payable under the        Credit Documents on or prior to the date hereof, including all reasonable and documented        out-of-pocket fees, charges and disbursements of Administrative Agent and counsel to        Administrative Agent.                                       13 

 

                  Section 5.  No Novation or Mutual Departure.  The Borrower expressly  acknowledges and agrees that there has not been, and this Agreement does not constitute or  establish, a novation with respect to the Credit Agreement or any other Credit Document, or a  mutual departure from the strict terms, provisions, and conditions thereof, other than with respect  to the amendments contained in Section 2 hereof.                Section 6.  Confirmation.  Each Credit Party (a) confirms its obligations under  the Collateral Documents, (b) confirms that its Obligations under the Credit Agreement as  modified hereby are entitled to the benefits of the pledges set forth in the Collateral Documents,  (c) confirms that its Obligations under the Credit Agreement as modified hereby constitute  “Secured Obligations” (as defined in the Collateral Documents) and (d) agrees that the Credit  Agreement as modified hereby is the Credit Agreement under and for all purposes of the Collateral  Documents.  Each party, by its execution of this Agreement, hereby confirms that the Secured  Obligations shall remain in full force and effect, and such Secured Obligations shall continue to  be entitled to the benefits of the grant set forth in the Collateral Documents. Each Guarantor (a)  confirms its Guaranteed Obligations under the Credit Agreement, (b) confirms that the Guaranteed  Obligations under the Credit Agreement as modified hereby are entitled to the benefits of the  guarantee set forth in Section 7 of the Credit Agreement and (c) confirms that the Obligations  under the Credit Agreement as modified hereby constitute “Guaranteed Obligations”.  Each Credit  Party, by its execution of this Agreement, hereby confirms that the Guaranteed Obligations shall  remain in full force and effect.                 Section 7.  Miscellaneous.                       (a)   This Agreement shall be limited as written and nothing herein shall       be deemed to constitute an amendment or waiver of any other term, provision or condition       of any of the Credit Documents in any other instance than as expressly set forth herein or       prejudice any right or remedy that any Lender or any Agent may now have or may in the       future have under any of the Credit Documents.  Except as herein provided, the Credit       Agreement shall remain unchanged and in full force and effect.  This Agreement, the Credit       Agreement and the other Credit 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.  This Agreement may be executed in any number       of counterparts, all of which taken together shall constitute one and the same amendatory       instrument and any of the parties hereto may execute this Agreement by signing any such       counterpart.  Delivery of a counterpart by electronic transmission shall be effective as       delivery of a manually executed counterpart hereof.                     (b)   THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS       OF THE PARTIES HEREUNDER (INCLUDING, WITHOUT LIMITATION, ANY       CLAIMS SOUNDING IN CONTRACT LAW OR TORT LAW ARISING OUT OF THE       SUBJECT MATTER HEREOF AND ANY DETERMINATIONS WITH RESPECT TO       POST-JUDGMENT INTEREST) SHALL BE GOVERNED BY, AND SHALL BE       CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE       STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES                                      14 

 

                                THEREOF THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER  THAN THE LAW OF THE STATE OF NEW YORK.                (c)   Each of the undersigned Lenders, by its execution hereof, authorizes  and directs the Administrative Agent to execute and deliver this Agreement upon the  satisfaction of the conditions precedent described above (which shall be conclusively  evidenced by such Lender’s execution hereof).                (d)   Each of the undersigned Lenders confirms the authority of the  Administrative Agent and Collateral Agent to, and the Administrative Agent and Collateral  Agent each agrees to, in each case without further written consent or authorization from any  Secured Party, execute any documents or instruments necessary to release any Lien  encumbering any item of Collateral that is the subject of a Permitted Leaseback Transaction  permitted under the Credit Agreement (as amended hereby).                                     [Signature pages follow]                                                                       15 

 

                  IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be  duly executed and delivered as of the day and year first above written.     BORROWER:                      BLUELINX HOLDINGS INC.                                    By:     /s/ Mitchell B. Lewis                                                Name:  Mitchell B. Lewis                                         Title:  President and Chief Executive Officer                                      S-1 

 

                                      GUARANTORS:                    CEDAR CREEK HOLDINGS, INC.                                   By:     /s/ Mitchell B. Lewis                                              Name:  Mitchell B. Lewis                                       Title:  President and Chief Executive Officer                                  BLUELINX CORPORATION                                   By:     /s/ Mitchell B. Lewis                                              Name:  Mitchell B. Lewis                                       Title:  President and Chief Executive Officer                                  BLUELINX FLORIDA HOLDINGS NO.1 INC.                                 BLUELINX FLORIDA HOLDINGS N O. 2 INC.                                 CEDAR CREEK LLC                                 CEDAR CREEK CORP.                                 ASTRO BUILDINGS INC.                                 LAKE STATES LUMBER, INC.                                 VENTURE DEVELOPMENT &                                 CONSTRUCTION, LLC                                   By:     /s/ Mitchell B. Lewis                                              Name:  Mitchell B. Lewis                                       Title:  President and Chief Executive Officer                                  BLUELINX FLORIDA LP                                  By:   BlueLinx Florida Holdings No. 2 Inc.,                                       its General Partner                                   By:     /s/ Mitchell B. Lewis                                              Name:  Mitchell B. Lewis                                       Title:  President and Chief Executive Officer                                    S-2                    

 

                                      ABP AL (MIDFIELD) LLC  ABP CO II (DENVER) LLC  ABP FL (LAKE CITY) LLC  ABP FL (PENSACOLA) LLC  ABP FL (YULEE) LLC  ABP IA (DES MOINES) LLC  ABP IL (UNIVERSITY PARK) LLC  ABP IN (ELKHART) LLC  ABP KY (INDEPENDENCE) LLC  ABP LA (NEW ORLEANS) LLC  ABP ME (PORTLAND) LLC  ABP MI (GRAND RAPIDS) LLC  ABP MN (MAPLE GROVE) LLC  ABP MO (KANSAS CITY) LLC  ABP MO (SPRINGFIELD) LLC  ABP MO (BRIDGETON) LLC  ABP MO (KANSAS CITY) LLC  ABP NC (CHARLOTTE) LLC  ABP NJ (DENVILLE) LLC  ABP NY (YAPHANK) LLC  ABP OH (TALMADGE) LLC  ABP OK (TULSA) LLC  ABP PA (STANTON) LLC  ABP SC (CHARLESTON) LLC  ABP TN (ERWIN) LLC  ABP TN (MEMPHIS) LLC  ABP TN (MADISON) LLC  ABP TX (EL PASO) LLC  ABP TX (HOUSTON) LLC  ABP TX (LUBBOCK) LLC  ABP TX (SAN ANTONIO) LLC  ABP VA (RICHMOND) LLC  ABP VT (SHELBURNE) LLC   By:   BlueLinx Holdings Inc., as Sole Manager    By:     /s/ Mitchell B. Lewis               Name:  Mitchell B. Lewis        Title:  President and Chief Executive Officer     S-3                    

 

                                      ADMINISTRATIVE AGENT:          HPS INVESTMENT PARTNERS, LLC, as                                 Administrative Agent                                   By:     /s/ Vikas Keswani                                                  Name: Vikas Keswani                                       Title: Managing Director                                    S-4                    

 

                                      REQUISITE LENDERS:             SPECIALTY LOAN FUND 2016, L.P., as Lender                                  By:   HPS Investment Partners, LLC, its                                        Investment Manager                                   By:     /s/ Vikas Keswani                                                  Name: Vikas Keswani                                       Title: Managing Director                                    S-5                    

 

                                      SPECIALTY LOAN ONTARIO FUND 2016,  L.P., as Lender   By:   HPS Investment Partners, LLC, its         Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-6                    

 

                                      SPECIALTY LOAN FUND 2016-L, L.P., as  Lender   By:   HPS Investment Partners, LLC, its         Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-7                    

 

                                      SLF 2016 INSTITUTIONAL HOLDINGS, L.P.,  as Lender   By:   HPS Investment Partners, LLC, its Service         Provider    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-8                    

 

                                      MORENO STREET DIRECT LENDING FUND,  L.P., as Lender   By:   PS Investment Partners, LLC, its         Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-9                    

 

                                      SPECIALTY LOAN VG FUND, L.P., as Lender   By:   HPS Investment Partners, LLC, its         Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-10                    

 

                                      NDT SENIOR LOAN FUND, L.P., as Lender   By:   HPS Investment Partners, LLC, its        Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-11                    

 

                                      AIGUILLES ROUGES SECTOR B  INVESTMENT FUND, L.P., as Lender   By:   HPS Investment Partners, LLC, its         Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-12                    

 

                                      FALCON CREDIT FUND, L.P., as Lender   By:   HPS Investment Partners, LLC, its         Investment Manager     By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-13                    

 

                                      RELIANCE STANDARD LIFE INSURANCE  COMPANY, as Lender   By:   HPS Investment Partners, LLC, its         Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-14                    

 

                                      TMD-DL HOLDING, LLC, as Lender   By:   HPS Investment Partners, LLC, its         Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-15                    

 

                                      TOKIO MILLENNIUM RE AG, L.P., as Lender   By:   HPS Investment Partners, LLC, its         Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-16                    

 

                                      SPECIALTY LOAN FUND – CX – 2, L.P., as  Lender   By:   HPS Investment Partners, LLC, its         Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-17                    

 

                                      CACTUS DIRECT LENDING FUND, L.P., as  Lender   By:   HPS Investment Partners, LLC, its         Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-18                    

 

                                      PRIVATE LOAN OPPORTUNITIES FUND,  L.P., as Lender   By:   HPS Investment Partners, LLC, its         Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-19                    

 

                                      RED CEDAR FUND 2016, L.P., as Lender   By:   HPS Investment Partners, LLC, its         Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-20                    

 

                                      PACIFIC INDEMNITY COMPANY, as Lender   By:   HPS Investment Partners, LLC, its         Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director     S-21                    

 

                                      AXA EQUITABLE LIFE INSURANCE  COMPANY, as Lender   By:   HPS Investment Partners, LLC, its         Investment Manager    By:     /s/ Vikas Keswani                   Name: Vikas Keswani        Title: Managing Director                        S-22exhibit102formtbrsuaward

                                                                     EXHIBIT 10.2                              BLUELINX HOLDINGS, INC.              2016 AMENDED AND RESTATED LONG-TERM INCENTIVE PLAN                                   (AS AMENDED)             2019 TIME-BASED RESTRICTED STOCK UNIT AWARD AGREEMENT                                  EMPLOYEE NAME                     Number of Shares Subject to Award:  __________                                Grant Date:  __________   Pursuant to the BlueLinx Holdings, Inc. 2016 Amended and Restated Long-Term Incentive Plan,  as amended (the “Plan”), BlueLinx Holdings, Inc., a Delaware corporation (the “Company”), has  granted the above-named participant (“Participant”) Restricted Stock Units (the “RSUs” or the  “Award”) entitling Participant to receive such number of shares of Company common stock (the  “Shares”) as is set forth above on the terms and conditions set forth in this agreement (this  “Agreement”) and the Plan.  Capitalized terms used in this Agreement and not defined herein  shall have the meanings set forth in the Plan.          1.    Grant Date.  The Award is granted to Participant on the Grant Date set forth above   (the “Grant Date”).          2.    Vesting.  Except as otherwise set forth herein, if Participant remains employed by   the Company, the RSUs and the right to the Shares shall vest with respect to one-third of the  number of Shares subject to the Award on each of the first three anniversaries of the Grant Date  (each such anniversary a “Vesting Date”) and shall fully vest on the third anniversary of the Grant  Date (the “Final Vesting Date”).  If the number of Shares vesting on any Vesting Date is not a  whole number, the number will be rounded up to the next whole number on the 1st Vesting Date,   rounded down on the 2nd Vesting Date, and on the Final Vesting Date, shall equal the total number  of Shares subject to the Award less the number of Shares that vested on the 1st and 2nd Vesting  Dates.          3.    Forfeiture of RSUs.                (a)  Termination of Employment.  Prior to the Final Vesting Date, except as   otherwise provided herein, any unvested RSUs shall be immediately forfeited upon Participant’s   termination of employment with the Company for any reason whatsoever; provided, that the   Committee reserves the right, in its sole discretion, to waive or amend this provision, in whole or   in part.  For purposes of this Agreement, employment with any Subsidiary of the Company shall   be considered employment with the Company and a termination of employment shall mean a   termination of employment with the Company and each Subsidiary by which Participant is   employed.                (c)   Restrictive Covenants.  The grant of this Award is contingent upon   Participant signing or having signed a restrictive covenants agreement or, to the extent applicable,  an amendment to an existing employment or restrictive covenants agreement, in either case in   the form provided by the Company on or prior to the date that Participant signs this Agreement.   Notwithstanding any provision of this Agreement, if Participant breaches or otherwise fails to 

 

 comply with such restrictive covenants agreement or any other non-compete, non-solicitation or   similar agreement with the Company or a Subsidiary, in addition to all rights the Company or its   Subsidiary has under such agreement, at law or in equity, RSUs that have not become vested   and settled before such breach or failure to comply shall expire at that time, shall not become   vested or settled after such time and shall be forfeited at such time without any payment therefor.          4.    Transfer of Vested Shares.  Stock certificates representing the vested Shares (or   appropriate evidence of ownership including certificateless book-entry issuance), if any, will be   delivered to Participant (or, if permitted by the Company in its sole discretion, to a party designated   by Participant) on or as soon as practicable after (but no later than 30 days after) each Vesting   Date, or if applicable under Section 14(a), the date of a Change in Control or qualifying termination  of employment following a Change in Control, subject, as applicable, to delay under Section 21.          5.    Non-Transferability of Award.  The RSUs and the Shares issuable hereunder   and the rights and privileges conferred hereby may not be sold, transferred, pledged, assigned,   or otherwise alienated or hypothecated by operation of law or otherwise (except as permitted by   the Plan).  Any attempt to do so contrary to the provisions hereof shall be null and void.          6.    Conditions to Issuance of Shares.  The Shares deliverable to Participant   hereunder may be either previously authorized but unissued Shares or issued Shares which have   been reacquired by the Company.  The Company shall not be required to issue or deliver any   Shares prior to fulfillment of all of the following conditions: (a) the admission of such Shares to   listing on all stock exchanges on which such class of stock is then listed; (b) the completion of   any registration or other qualification of such Shares under any state or federal law or under the   rulings and regulations of the Securities and Exchange Commission (“SEC”) or any other   governmental regulatory body, which the Committee shall, in its discretion, deem necessary or   advisable; and (c) the obtaining of any approval or other clearance from any state or federal   governmental agency, which the Committee shall, in its discretion, determine to be necessary or   advisable.          7.    No Rights as Stockholder.  Except as provided in Section 10, Participant shall   not have voting, dividend or any other rights as a stockholder of the Company with respect to the   unvested Shares subject to the RSUs.  Upon settlement of the Award into Shares, Participant will  obtain full voting and other rights as a stockholder of the Company with respect to such Shares.          8.    Administration.  The Committee shall have the power to interpret the Plan and   this Agreement and to adopt such rules for the administration, interpretation, and application of  the Plan as are consistent therewith and to interpret or revoke any such rules.  All actions taken  and all interpretations and determinations made by the Committee shall be final and binding upon  Participant, the Company, and all other interested persons.  No member of the Committee shall  be personally liable for any action, determination, or interpretation made in good faith with respect  to the Plan or this Agreement.          9.    Fractional Shares.  Fractional shares will not be issued, and when any provision   of this Agreement otherwise would entitle Participant to receive a fractional share, that fraction   will be disregarded.          10.  Adjustments in Capital Structure.  In the event of a change in corporate   capitalization as described in Sections 4.4 and 18.2 of the Plan, the Committee shall make  appropriate adjustments to the number and class of Shares or other stock or securities subject to                                           2 

 

 the Award.  The Committee’s adjustments shall be effective and final, binding and conclusive for   all purposes of this Agreement.          11.  Taxes.                (a)  Upon the vesting and delivery of Shares subject to this Award, Participant  shall pay or make adequate arrangements satisfactory to the Company and/or the employing  Subsidiary to withhold all applicable federal, state and local income and employment taxes (“Tax  Withholding Amounts”) payable with respect to this Award from Participant’s wages or other cash  compensation paid to Participant by the Company and/or the Subsidiary or from proceeds of the  sale of Shares.  Alternatively, or in addition, if permissible under local law, to the extent not  prohibited by the Committee, the Company may, in its sole discretion, (i) sell or arrange for sale  of Shares that Participant acquires to meet the tax withholding obligations, and/or (ii) satisfy such  tax obligations by withholding and cancelling a number of Shares having a market value equal to  the Tax Withholding Amounts, provided that the amount to be withheld may not exceed the tax  withholding obligations associated with the Award to the extent needed for the Company to treat  the Award as an equity award for accounting purposes and to comply with applicable tax  withholding laws.               (b)   Participant acknowledges and agrees that the ultimate liability for all taxes  legally due by him or her is and remains Participant’s responsibility and that the Company and/or  the Subsidiary: (i) make no representations nor undertakings regarding the treatment of any taxes  in connection with any aspect of this Award, including the grant or vesting of the Shares subject  to this Award or the subsequent sale of Shares acquired pursuant to such vesting; and (ii) do not  commit to structure the terms of the grant or any aspect of this Award to reduce or eliminate  Participant’s liability for taxes.  In addition, Participant shall pay the Company or the Subsidiary  any amount of Tax Withholding Amounts that the Company or the Subsidiary may be required to  withhold as a result of Participant’s participation in the Plan that cannot be satisfied by the means  previously described.  The Company may refuse to deliver the Shares if Participant fails to comply  with Participant’s obligations in connection with the Tax Withholding Amounts.          12.  Participant Acknowledgments and Agreements.  By accepting the grant of this   Award, Participant acknowledges and agrees that: (a) the Plan is established voluntarily by the   Company, it is discretionary in nature and may be modified, amended, suspended or terminated   by the Company at any time unless otherwise provided in the Plan or this Agreement; (b) the   grant of this Award is voluntary and occasional and does not create any contractual or other right   to receive future grants of Shares, or benefits in lieu of Shares, even if Shares have been granted   repeatedly in the past; (c) all decisions with respect to future grants, if any, will be at the sole   discretion of the Company and the Committee; (d) Participant’s participation in the Plan shall not   create a right of future employment with the Company and shall not interfere with the ability of the   Company to terminate Participant’s employment relationship at any time with or without cause   and it is expressly agreed and understood that employment is terminable at the will of either party,   insofar as permitted by law; (e) Participant is participating voluntarily in the Plan; (f) this Award is   an extraordinary item that is outside the scope of Participant’s employment contract, if any; (g)   this Award is not part of Participant’s normal or expected compensation or salary for any   purposes, including but not limited to calculating any severance, resignation, termination,   redundancy, end of service payments, bonuses, long-service awards, pension or retirement   benefits or similar payments; (h) in the event Participant is not an employee of the Company, this   Award will not be interpreted to form an employment contract or relationship with the Company;   (i) the value of the Shares may increase or decrease in value and the future value of the underlying   Shares cannot be predicted; and (j) except as otherwise set forth herein, in the event of any                                          3 

 

 termination of employment (whether or not in breach of local labor laws), Participant’s right to vest   in the Award and receive any Shares will terminate effective as of the date that Participant is no   longer employed and will not be extended by any notice period mandated under local statute,   contract or common law; the Committee shall have the exclusive discretion to determine when   Participant is no longer employed for purposes of this Award.          13.  Plan Information.  Participant agrees to receive copies of the Plan, the Plan   prospectus and other Plan information from the Company’s intranet and shareholder information,   including copies of any annual report, proxy statement, Form 10-K, Form 10-Q, Form 8-K and   other information filed with the SEC, from the investor relations section of the Company’s website   at www.BlueLinxCo.com.  Participant acknowledges that copies of the Plan, Plan prospectus,   Plan information and shareholder information are available upon written or telephonic request to   the Company’s Corporate Secretary.          14.  Change in Control; Retirement.                (a)  Change in Control.  Upon a Change in Control, if the surviving entity in such   Change in Control does not assume or replace the Award, then all unvested Shares subject to   the Award shall immediately become vested and nonforfeitable and subject to settlement and   transfer of Shares under Section 4 as of the date on which the Change in Control occurs; provided,   however, if the Award is subject to Code Section 409A and the Treasury Regulations and other   guidance promulgated or issued thereunder (“Section 409A”), and if the Change in Control does   not constitute a change in the ownership or effective control of the Company or a change in the   ownership of a substantial portion of the assets of the Company as provided under Section 409A,   the right to the Shares subject to the Award shall vest and be nonforfeitable as of the date of the   Change of Control but the settlement and transfer of the Shares (or cash in lieu of Shares) under   Section 4 shall not occur until each Vesting Date or other payment date under Section 4.  If the   surviving entity in the Change in Control assumes or replaces the Award, and Participant’s   employment is subsequently terminated by the Company (or its successor in the Change in   Control) other than for Cause (as defined in Participant’s then-current written employment   agreement, or if no such agreement exists, in any applicable policy or plan of the Company in   existence prior to the date on which the Change in Control occurs), or Participant’s employment   is subsequently terminated by Participant for Good Reason (as defined in Participant’s then-  current written employment agreement, or if no such agreement exists, in any applicable policy   or plan of the Company in existence prior to the date on which the Change in Control occurs), in   either case within twenty-four (24) calendar months following the Change in Control, then all   unvested Shares subject to the assumed or replaced Award shall immediately become vested   and nonforfeitable and subject to settlement and transfer under Section 4 as of the date of   Participant’s termination of employment.                (b)  Retirement.  Upon Participant’s Retirement (as defined below), subject to   approval of the Company’s Chief Executive Officer for Participants who are not executive officers,   a pro-rata portion of the then-unvested portion of the Award will become vested and nonforfeitable  and subject to transfer in accordance with Section 4, effective as of the date of Retirement, with  such pro-rata portion being determined by multiplying (i) the number of then-unvested Shares  subject to the Award, by (ii) a fraction, the numerator of which is the number of days of  employment that the Participant completed during the period beginning on the day following the  second anniversary of the Grant Date and ending on the date of Retirement, and the denominator  of which is the number of days beginning on the day following the second anniversary of the Grant  Date and ending on the Final Vesting Date.  The remaining portion of the Award will be forfeited  effective as of the date of Retirement.  For purposes of this Agreement, “Retirement” means the                                          4 

 

 termination of Participant’s employment by Participant or the Company when the Company does   not have Cause for termination of Participant’s employment (with Cause as defined in   Participant’s then-current written employment agreement, or if no such agreement exists, in any   applicable policy or plan of the Company in existence prior to the date on which the termination   occurs), in or following Participant’s 60th year of life, following the second anniversary of the Grant  Date, when Participant has completed at least seven years of continuous service with the  Company, and under circumstances in which Participant retires from full-time active employment.          15.  Clawback Policy.  This Award shall be subject to: (a) the terms and conditions of   any applicable policy of recoupment or recovery of compensation adopted by the Company from   time to time (as such policy may be amended); (b) terms and conditions regarding recoupment or   recovery of compensation in any agreement between the Company or any Subsidiary and   Participant; and (c) the requirements of any applicable law or regulation with respect to the   recoupment or recovery of incentive compensation.  Participant hereby agrees to be bound by   the requirements of this Section 15.  The recoupment or recovery of any portion of the Award (or   vested Shares) that is permitted by any such policy, agreement, law or regulation may be made   by the Company or the Subsidiary that employed Participant.          16.  Complete Agreement.   The Plan and this Agreement constitute the entire   agreement of the parties with respect to the subject matter hereof and supersede in their entirety   all prior undertakings and agreements of the Company and Participant with respect to the subject   matter hereof.  The terms of this Agreement control over any contrary provision in the Plan,   in Participant’s employment agreement with the Company or in any severance plan or   other agreement that applies to Participant.  If Participant is a party to an employment   agreement or severance plan or agreement with the Company and such plan or agreement   includes one or more provisions that specifically applies to equity awards such as this   Award, such provisions of such plan or agreement are hereby superseded and shall not   apply to this Award.  Acceptance of this Agreement shall be deemed an amendment or   modification of such other plan or agreement solely with respect to this Award.  If provisions   of the Plan and this Agreement conflict, the Plan provisions will govern.          17.  Modification of Agreement.  No provision of this Agreement may be materially   amended or waived unless agreed to in writing and signed by the Committee (or its designee).   Any such amendment to this Agreement that is materially adverse to Participant shall not be  effective unless and until Participant consents, in writing, to such amendment (provided that any  amendment that is required to comply with Code Section 409A shall be effective without consent  unless Participant expressly denies consent to such amendment in writing).  The failure to  exercise, or any delay in exercising, any right, power or remedy under this Agreement shall not  waive any right, power or remedy which the Company has under this Agreement.          18.  Participant Bound by Plan; Successors.  Participant acknowledges receiving,   or being provided with access to, a prospectus describing the material terms of the Plan, and   agrees to be bound by all the terms and conditions of the Plan.  Except as limited by the Plan or   this Agreement, this Agreement is binding on and extends to the legatees, distributees and   personal representatives of Participant and the successors of the Company.          19.  Governing Law.  This Agreement has been made in and shall be construed under   and in accordance with the laws of the State of Georgia, without regard to conflict of law   provisions.                                           5 

 

      20.  Severability.  The provisions of this Agreement are severable and if any one or  more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the  remaining provisions shall nevertheless be binding and enforceable.         21.  Section 409A.               (a)  General.  It is intended that payments under this Agreement will not be  considered nonqualified deferred compensation subject to Section 409A and that such payments  will satisfy the exemption from Section 409A for “short-term deferrals.”  Notwithstanding the  foregoing, if any payment is considered nonqualified deferred compensation, this Agreement and  the payments hereunder will be administered and interpreted to comply with Section 409A,  including, as necessary, by requiring a six-month delay in accordance with Section 21.14 of the  Plan.  For purposes of Section 409A, each payment under this Agreement shall be treated as a  separate payment.  If any payment considered nonqualified deferred compensation is payable  upon a termination of employment, such payment shall be made only if the termination of  employment constitutes a “separation from service” as defined under Section 409A.               (b)  No Representations as to Section 409A Compliance.  Notwithstanding the  foregoing, the Company makes no representation to Participant that the Award and any Shares  issued pursuant to this Agreement are exempt from, or satisfy, the requirements of Section 409A,  and the Company shall have no liability or other obligation to indemnify or hold harmless  Participant or any beneficiary for any tax, additional tax, interest or penalties that Participant 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.         22.  Consent for Accumulation and Transfer of Data.  Participant consents to the  accumulation and transfer of data concerning him or her and the Award to and from the Company  (and its Subsidiaries) and such other agent as may administer the Plan on behalf of the Company  from time to time. In addition, Participant understands that the Company and its Subsidiaries hold  certain personal information about Participant, including but not limited to his or her name, home  address, telephone number, date of birth, social security number, salary, nationality, job title, and  details of all grants or awards, vested, unvested, or expired (the “personal data”).  Certain  personal data may also constitute “sensitive personal data” within the meaning of applicable local  law. Such data include but are not limited to information described above and any changes thereto  and other appropriate personal and financial data about Participant.  Participant hereby provides  explicit consent to the Company and its Subsidiaries to process any such personal data and  sensitive personal data.  Participant also hereby provides explicit consent to the Company and its  Subsidiaries to transfer any such personal data and sensitive personal data outside the country  in which Participant is employed, and to the United States or other jurisdictions.  The legal persons  for whom such personal data are intended are the Company and its Subsidiaries, any third party  stock plan administrator, and any company providing services to the Company in connection with  compensation planning purposes or the administration of the Plan.         24.  Effectiveness of Agreement.  This Agreement shall not be effective unless and  until Participant and the Company shall have executed this Agreement, as indicated under their  respective signatures set forth on the signature page hereto.                             [Signatures on Following Page]                                                                   6 

 

 BLUELINX HOLDINGS INC.                                                      _____________   By:                                       Date   Title:                                       By signing below or by accepting this Award as evidenced by electronic means acceptable to the   Committee, Participant hereby (i) acknowledges that a copy of the Plan, the Plan Prospectus and   the Company’s latest annual report to stockholders or annual report on Form 10-K are available  from the Company’s intranet site or upon request, (ii) represents that he or she is familiar with the  terms and provisions of this Agreement and the Plan, and (iii) accepts the award of RSUs subject  to all the terms and provisions of this Agreement and the Plan.  Participant hereby agrees to  accept as binding, conclusive and final all decisions or interpretations of the Committee regarding  any questions arising under the Plan.  Participant authorizes the Company to withhold from any  compensation payable to him including by withholding Shares, in accordance with applicable law,  any taxes required to be withheld by federal, state or local law as a result of the grant or vesting  of the RSUs.                                                                  (Signature)                                  Date                                       (Printed Name)                                           7

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