Document:

Ex 10.1 Second Amendment

SECOND AMENDMENT TO AMENDED AND RESTATED
REVOLVING CREDIT AND TERM LOAN AGREEMENT

THIS SECOND AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT (this “Amendment”), is made and entered into as of May 29, 2015, by and among Fox Factory Holding Corp., a Delaware corporation (“FFH”), Fox Factory, Inc., a California Corporation (“FF”), and ST USA Holding Corp., a Delaware corporation (“ST USA” and together with FFH and FF, each a “Borrower” and, collectively, the “Borrowers”), the several banks and other financial institutions party hereto (collectively, the “Lenders”) constituting the “Required Lenders” under the Credit Agreement (as defined below) and SUNTRUST BANK, in its capacity as Administrative Agent for the Lenders (the “Administrative Agent”).

W I T N E S S E T H:

WHEREAS, the Borrowers, the Lenders and the Administrative Agent are parties to a certain Amended and Restated Revolving Credit and Term Loan Agreement, dated as of March 31, 2014, as amended by that certain First Amendment to Amended and Restated Revolving Credit and Term Loan Agreement, dated as of December 12, 2014 (as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Credit Agreement), pursuant to which the Lenders have made certain financial accommodations available to the Borrowers; 

WHEREAS, the Borrowers have requested that the Lenders and the Administrative Agent amend certain provisions of the Credit Agreement, and subject to the terms and conditions hereof, the Lenders are willing to do so; 

NOW, THEREFORE, for good and valuable consideration, the sufficiency and receipt of all of which are acknowledged, the Borrowers, the Lenders and the Administrative Agent agree as follows:

1.Amendments.  

(a) Section 1.1 of the Credit Agreement is hereby amended by replacing the definition of “Continuing Director” with the following:

“Continuing Director” shall mean, with respect to any period, any individuals (A) who were members of the board of directors or other equivalent governing body of FFH on the first day of such period, (B) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (A) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body, or (C) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (A) and (B) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body.

2.Conditions to Effectiveness of this Amendment. Notwithstanding any other provision of this Amendment and without affecting in any manner the rights of the Lenders hereunder, it is understood and agreed that this Amendment shall not become effective, and the Borrowers shall have no rights under this Amendment, until the Administrative Agent shall have received (i) such fees as the Borrowers have 

previously agreed to pay the Administrative Agent or any of its affiliates or the Lenders in connection with this Amendment, (ii) reimbursement or payment of its costs and expenses incurred in connection with this Amendment or the Credit Agreement (including reasonable fees, charges and disbursements of King & Spalding LLP, counsel to the Administrative Agent), and (iii)     executed counterparts to this Amendment from the Borrowers, each of the Guarantors and the Required Lenders;

3.Representations and Warranties.  To induce the Lenders and the Administrative Agent to enter into this Amendment, each Loan Party hereby represents and warrants to the Lenders and the Administrative Agent: 

(a)    Each Borrower and each of their Subsidiaries (i) is duly orga-nized, validly existing and in good standing as a corporation, partnership, limited liability company or other organization under the laws of the jurisdiction of its organization, (ii) -has all requisite power and authority to carry on its business as now conducted, and (iii) is duly qualified to do business, and is in good standing, in each jurisdiction where such qualification is required, except where a failure to be so qualified could not reasonably be expected to result in a Material Adverse Effect;

(b)    The execution, delivery and performance by each Loan Party of the Loan Documents and the other Related Transaction Documents to which it is a party are within such Loan Party’s organizational powers and have been duly authorized by all necessary organizational, and if required, shareholder, partner or member action; 

(c)    The execution, delivery and performance by the Borrowers of this Amendment and by each Loan Party of the other Loan Documents and the other Related Transaction Documents to which it is a party (i) do not require any consent or approval of, registration or filing with, or any action by, any Governmental Authority, except those as have been obtained or made and are in full force and effect and except for filings necessary to perfect or maintain perfection of the Liens created under the Loan Documents, (ii) will not violate any Requirement of Law applicable to any Borrower or any of their Subsidiaries or any judgment, order or ruling of any Governmental Authority, (iii) will not violate or result in a default under any Contractual Obligation of any Borrower or any of their Subsidiaries or any of their assets or give rise to a right thereunder to require any payment to be made by any Borrower or any of their Subsidiaries and (iv) will not result in the creation or imposition of any Lien on any asset of any Borrower or any of their Subsidiaries, except Liens (if any) created under the Loan Documents, except in the case of clauses (ii) and (iii) those the failure of which could not reasonably be expected to have a Material Adverse Effect;

(d)    This Amendment has been duly executed and delivered by each Loan Party and constitutes a legal, valid and binding obligation of such Loan Party, enforceable against it in accordance with its terms except as the enforceability hereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’ rights generally and by general principles of equity; and

(e)    After giving effect to this Amendment, the representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct in all material respects, and no Default or Event of Default has occurred and is continuing as of the date hereof.

4.Reaffirmations and Acknowledgments.  

(a)    Reaffirmation of Guaranty.  Each Guarantor consents to the execution and delivery by the Borrowers of this Amendment and jointly and severally ratifies and confirms the terms of the Guaranty and Security Agreement with respect to the indebtedness now or hereafter outstanding under the Credit Agreement 

as amended hereby and all promissory notes issued thereunder. Each Guarantor acknowledges that, notwithstanding anything to the contrary contained herein or in any other document evidencing any indebtedness of the Borrowers to the Lenders or any other obligation of the Borrowers, or any actions now or hereafter taken by the Lenders with respect to any obligation of the Borrowers, the Guaranty and Security Agreement (i) is and shall continue to be a primary obligation of the Guarantors, (ii) is and shall continue to be an absolute, unconditional, joint and several, continuing and irrevocable guaranty of payment, and (iii) is and shall continue to be in full force and effect in accordance with its terms.  Nothing contained herein to the contrary shall release, discharge, modify, change or affect the original liability of the Guarantors under the Guaranty and Security Agreement.  

(b)    Acknowledgment of Perfection of Security Interest. Each Loan Party hereby acknowledges that, as of the date hereof, the security interests and liens granted to the Administrative Agent and the Lenders under the Credit Agreement and the other Loan Documents are in full force and effect, are properly perfected and are enforceable in accordance with the terms of the Credit Agreement and the other Loan Documents.

5.Effect of Amendment.  Except as set forth expressly herein, all terms of the Credit Agreement, as amended hereby, and the other Loan Documents shall be and remain in full force and effect and shall constitute the legal, valid, binding and enforceable obligations of the Borrowers to the Lenders and the Administrative Agent.  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Lenders under the Credit Agreement, nor constitute a waiver of any provision of the Credit Agreement.  This Amendment shall constitute a Loan Document for all purposes of the Credit Agreement.

6.Governing Law.   This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of New York and all applicable federal laws of the United States of America.

7.No Novation.  This Amendment is not intended by the parties to be, and shall not be construed to be, a novation of the Credit Agreement or an accord and satisfaction in regard thereto.

8.Costs and Expenses.  The Borrowers agree to pay on demand all costs and expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including, without limitation, the reasonable fees and out-of-pocket expenses of outside counsel for the Administrative Agent with respect thereto.

9.Counterparts.  This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, each of which shall be deemed an original and all of which, taken together, shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart of this Amendment by facsimile transmission or by electronic mail in pdf form shall be as effective as delivery of a manually executed counterpart hereof.

10.Binding Nature.  This Amendment shall be binding upon and inure to the benefit of the parties hereto, their respective successors, successors-in-titles, and assigns.

11.Entire Understanding.  This Amendment sets forth the entire understanding of the parties with respect to the matters set forth herein, and shall supersede any prior negotia-tions or agreements, whether written or oral, with respect thereto.

[Signature Pages To Follow]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed, under seal in the case of the Borrowers and the Guarantors, by their respective authorized officers as of the day and year first above written.

BORROWERS:

FOX FACTORY HOLDING CORP.

                            
By: /s/ Zvi Glasman            
      Name: Zvi Glasman
      Title: CFO

                            
FOX FACTORY, INC.

                            
By: /s/ Zvi Glasman            
      Name: Zvi Glasman
      Title: CFO

                            
ST USA HOLDING CORP.

                            
By: /s/ John Boulton            
      Name: John Boulton
      Title: VP
                    
GUARANTOR:

RFE Holding (US) Corp. 

                            
By: /s/ David Haugen            
      Name: David Haugen
      Title: VP

LENDERS:

SUNTRUST BANK, individually and as Administrative Agent

By: /s/ David A. Ernst    
Name: David A. Ernst
Title: Vice President

FIFTH THIRD, AN OHIO BANKING CORPORATION, as a Lender

By:/s/ Anthony H. Billings    
Name: Anthony H. Billings
Title: Assistant Vice President 

U.S. BANK NATIONAL ASSOCIATION, as a Lender

By:    
Name:
Title:EX-10.39

 Exhibit 10.39 

Description of ITT Educational Services, Inc.’s Executive and Director Compensation 

2015 Executive Salaries 
 On
January 26, 2015, the Compensation Committee of our Board of Directors determined not to make any changes to the annual base salaries for any of the Named Executive Officers, other than Mr. Feichtner. The named executive officers are those
executive officers of ours who will be included as such in the Proxy Statement for our 2015 Annual Meeting of Shareholders. The Compensation Committee increased Mr. Feichtner’s base salary as a result of the increased duties and
responsibilities assumed by him in connection with his appointment as our President and Chief Operating Officer in August 2014. The following table sets forth the 2015 base salary information for each of our named executive officers as of
February 9, 2015. 
  

					
	 Named Executive Officer
	  	2015 Salary	 
	 Kevin M. Modany
	  	$	824,076	  
	 Daniel M. Fitzpatrick
	  	$	412,000	  
	 John E. Dean
	  	$	575,000	  
	 Eugene W. Feichtner
	  	$	400,000	  
	 Ronald F. Hamm
	  	$	334,750	  

 2014 Short-Term Compensation and Bonus Payments 

On January 26, 2015, the Compensation Committee reviewed the results of the eight 2014 management objectives (the “2014 Management
Objectives”) under the short-term compensation element of executive compensation previously established by the Compensation Committee. Based on its determination of the extent to which each of the 2014 Management Objectives was accomplished by
our named executive officers in 2014, the Compensation Committee approved the payment of a short-term compensation amount in cash to each of our named executive officers, other than Mr. Dean, who was not a participant in the short-term
compensation element, as follows: 
  

					
	 Named Executive Officer
	  	2014 Short-Term
Compensation Amount	 
	 Kevin M. Modany
	  	$	721,067	  
	 Daniel M. Fitzpatrick
	  	$	234,325	  
	 John E. Dean
	  	 	N/A	  
	 Eugene W. Feichtner
	  	$	245,000	  
	 Ronald F. Hamm
	  	$	161,098	  

 In addition, on January 26, 2015, the Compensation Committee also approved an additional bonus payment of
$100,000 to Mr. Fitzpatrick in recognition of his significant efforts and time spent on company matters in 2014. 

 2015 Short-Term Compensation 

On January 26, 2015, the Compensation Committee established a short-term compensation element for our executive officers (other than
Mr. Modany, due to his previously-announced intention to resign from the company, and Mr. Dean) that will be payable in early 2015, if certain management objectives (the “2015 Management Objectives”) are accomplished during 2015.
The 2015 Management Objectives and their respective weightings are as follows: 
  

							
	 	  	 Management Objectives
	  	Weight	 
	 1.
	  	Resolve certain outstanding legal and regulatory matters involving the company.	  	 	20	% 
	 2.
	  	Optimize the total number of contact hours in the first academic quarter of the ITT Technical Institutes’ program offerings.	  	 	20	% 
	 3.
	  	Effect matters relating to the third-party loan servicing organizations for the private education loan programs.	  	 	15	% 
	 4.
	  	Improve the 2015 ITT Technical Institute quarterly student evaluation average score.	  	 	15	% 
	 5.
	  	Reduce the current and future carrying cost and collateralization of the letter of credit that the company is required to post for the benefit of the U.S. Department of Education.	  	 	10	% 
	 6.
	  	Improve the average NCLEX score of the 2015 graduates of the Breckinridge School of Nursing and Health Sciences nursing program.	  	 	10	% 
	 7.
	  	Acquire a training company to support strategic initiatives associated with The Center for Professional Development at ITT Technical Institute.	  	 	5	% 
	 8.
	  	Obtain requisite federal, state and accrediting commission authorizations for the ITT Technical Institutes to offer a dual high school diploma and associate degree program.	  	 	5	% 

 The determination of the extent to which the 2015 Management Objectives are accomplished by our executive
officers will be made by the Compensation Committee in early 2016. The Committee intends to assign zero to five points to each 2015 Management Objective, based on the extent to which the Committee determines the objective was accomplished. The
number of points assigned to each 2015 Management Objective will be multiplied by the weight associated with that 2015 Management Objective, resulting in a weighted number of points for that 2015 Management Objective. The weighted number of points
for all of the 2015 Management Objectives will be added together, resulting in a total number of weighted points. The following table sets forth the maximum short-term compensation percentage that is associated with the total number of weighted
points that are assigned to the 2015 Management Objectives by the Compensation Committee: 
  

					
	 Total Weighted Points
	  	Maximum Short-Term
Compensation Percentage	 
	 4.76-5.00
	  	 	200.0	% 
	 4.51-4.75
	  	 	187.5	% 
	 4.26-4.50
	  	 	175.0	% 
	 4.01-4.25
	  	 	162.5	% 
	 3.76-4.00
	  	 	150.0	% 
	 3.51-3.75
	  	 	137.5	% 
	 3.26-3.50
	  	 	125.0	% 
	 3.01-3.25
	  	 	112.5	% 
	 2.76-3.00
	  	 	100.0	% 
	 2.51-2.75
	  	 	87.5	% 
	 2.26-2.50
	  	 	75.0	% 
	 2.01-2.25
	  	 	62.5	% 
	 1.76-2.00
	  	 	50.0	% 
	 1.51-1.75
	  	 	41.7	% 
	 1.26-1.50
	  	 	33.3	% 
	 1.00-1.25
	  	 	25.0	% 

 To determine the maximum short-term compensation amount that an executive officer may receive, the maximum
short-term compensation percentage (determined as described above) will be multiplied by a standard short-term compensation percentage of annualized base salary as of December 31, 2015, ranging from 32% to 100%, with the percentage depending on
the officer’s position, and the result will be multiplied by the officer’s annualized base salary. The following table sets forth the 2015 standard short-term compensation percentage of annualized base salary as of December 31, 2015
for each of the named executive officers who are current participants in the 2015 short-term compensation element: 
  

					
	 Named Executive Officer
	  	2015 Standard Short-
Term Compensation
Percentage
of
Annualized Base Salary	 
	 Daniel M. Fitzpatrick
	  	 	65	% 
	 Eugene W. Feichtner
	  	 	70	% 

 An executive officer’s actual short-term compensation payment, however, may be more or less than the
officer’s potential short-term compensation as calculated as described above. An executive officer’s actual short-term compensation amount will be based on the Compensation Committee’s discretionary assessment of the officer’s
individual contribution toward accomplishing each 2015 Management Objective. Any 2015 short-term compensation payment will be made in cash. The Compensation Committee may, in its sole discretion, modify the terms of the short-term compensation
element at any time before it is paid. 
 2015 Executive Perquisites 

On January 26, 2015, the Compensation Committee of our Board of Directors also approved the following executive perquisites in 2015 for
our named executive officers: 
  

	 	•	 	for our Chief Executive Officer, the use of a company car; 

  

	 	•	 	for our Chief Executive Officer, an allowance to be used for tax return preparation and financial planning of up to 2% of annualized 2015 base salary; 

 

	 	•	 	for the other named executive officers (other than Mr. Dean), an allowance to be used for tax return preparation and financial planning of up to 1% of annualized 2015 base salary; 

 

	 	•	 	for each of the named executive officers (other than Mr. Dean): 

  

	 	•	 	tickets to sporting, theater and other events (other than Mr. Hamm); 

  

	 	•	 	enhanced disability benefits; and 

  

	 	•	 	an annual physical examination; and 

  

	 	•	 	with respect to Mr. Hamm, the reimbursement of up to $30,000 in commuting expenses incurred by him in 2015; Mr. Hamm resigned from our company effective May 15, 2015. 

The aggregate incremental cost to us in 2015 for providing all of the 2015 perquisites described above is not expected to exceed $150,000. 

2015 Director Compensation 
 The
compensation for non-employee Directors on our Board of Directors in 2015 consists of: 
  

	 	•	 	an annual retainer of $75,000 payable in one installment on the first business day of 2015; 

  

	 	•	 	no separate meeting fees; 

  

	 	•	 	a grant under the ITT Educational Services, Inc. Amended and Restated 2006 Equity Compensation Plan of restricted stock units (“RSUs”) with a time-based period of restriction that: 

 

	 	•	 	has a value of $100,000, plus the value associated with any fractional RSU necessary to cause the grant to be for a whole number of RSUs, pursuant to which the value is determined based on the closing market price of a
share of our common stock on the effective date of the grant; 

  

	 	•	 	is effective on the third trading day following the date that we become current in our filings with the Securities and Exchange Commission; 

 

	 	•	 	will vest on May 1, 2016; and 

  

	 	•	 	is settled on the first business day following the last day of the period of restriction by the delivery of one share of our common stock for each RSU in the grant. 

We also reimburse Directors for reasonable, out-of-pocket travel expense related to attending our Board of Directors and its committee meetings and other
business of the Board.

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