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EXHIBIT 10.1

PHILLIPS-VAN HEUSEN CORPORATION

2006 STOCK INCENTIVE PLAN

PERFORMANCE SHARE AWARD AGREEMENT

NOTICE OF PERFORMANCE SHARE AWARD

Phillips-Van Heusen Corporation (the “Company”) grants to the Grantee named below, in accordance with the terms of the Phillips-Van Heusen Corporation 2006 Stock Incentive Plan (the “Plan”) and performance share award agreement (this “Agreement”), the number of performance shares (the “Performance Shares”) provided as follows:

		
	GRANTEE

	 

	TARGET NO. OF PERFORMANCE SHARES

	 

	PERFORMANCE PERIOD

	 

	DATE OF GRANT

	 

	SETTLEMENT SCHEDULE

	Performance Shares will be settled within two and one-half months of the last day of the Performance Period, subject to achievement and certification of performance goals described in this Agreement and the Grantee being employed by the Company through such date, except as otherwise provided herein.

AGREEMENT

1.

Grant of Award.  The Company hereby grants to the Grantee the Performance Shares, settlement of which is dependent upon the achievement of certain performance goals more fully described in Section 2(d) of this Agreement.  This Award is subject to the terms, definitions and provisions of the Plan and this Agreement.  All terms, provisions, and conditions applicable to the Performance Shares set forth in the Plan and not set forth herein are incorporated by reference.  To the extent any provision hereof is inconsistent with a provision of the Plan, the provision of the Plan will govern.  All capitalized terms that are used in this Agreement and not otherwise defined herein shall have the meanings ascribed to them in the Plan. 

2.

Settlement of Award.

a.

Right to Award.  The Performance Shares awarded pursuant to this Agreement represent the opportunity to receive Shares of the Company if performance goals outlined in Section 2(d) of this Agreement are satisfied.  

 

b.

Settlement of Award.  Settlement shall occur on a date chosen by the Committee, which date shall be no later than the 15th day of the third month of the calendar year following the last day of the Performance Period.  Settlement is contingent upon the Grantee remaining in the employment or service of the Company or its Subsidiaries through the settlement date, except as otherwise provided in Section 3. 

The Company may require the Grantee to furnish or execute such documents as the Company shall reasonably deem necessary (i) to evidence such settlement and (ii) to comply with or satisfy the requirements of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, or any other Applicable Law.

c.

Method of Settlement.  The Company shall deliver to the Grantee one Share for each Performance Share earned, less any Shares withheld in accordance with Section 2(e) of this Agreement.  Share certificates shall be issued in the name of the Grantee (or of the person or persons to whom such Award was transferred in accordance with Section 4 of this Agreement).  

d.

Determination of the Number of Performance Shares Earned.  The number of Performance Shares earned, if any, is based on a combination of earnings per share and return on equity at the end of the Performance Period, determined in accordance with the schedule annexed hereto as Exhibit A.

e.

Taxes.  Pursuant to Section 14 of the Plan, the Company shall have the power and the right to deduct or withhold, or require the Grantee to remit to the Company, an amount sufficient to satisfy any applicable tax withholding requirements applicable to this Award.  The Company may condition the delivery of Shares upon the Grantee’s satisfaction of such withholding obligations. To the extent permitted by the Committee, the Grantee may elect to satisfy all or part of such withholding requirement by tendering previously-owned Shares or by having the Company withhold Shares having a Fair Market Value equal to the minimum statutory tax withholding rate that could be imposed on the transaction (or such other rate that will not result in a negative accounting impact).  Such election shall be irrevocable, made in writing, signed by the Grantee, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.

3.

Termination of Employment.

 

a.

If the Grantee's employment terminates during a Performance Period by reason of his or her death, his or her estate shall receive, within 30 days of the Grantee’s death, the Performance Shares that would otherwise have been delivered to the Grantee for the Performance Period if the plan target level were achieved, prorated to the portion of the Performance Period actually worked by the Grantee. 

b.

If the Grantee's employment terminates during a Performance Period by reason of his or her disability, the Grantee shall receive the Performance Shares, if any, that would otherwise have been delivered to the Grantee for the Performance Period, prorated to the portion of the Performance Period actually worked by the Grantee.

c.

If the Grantee's employment terminates during a Performance Period by reason of his or her Retirement, the Grantee shall receive the Performance Shares, if any, which would otherwise have been payable to the Grantee for the Performance Period, prorated to the portion of the Performance Period actually worked by the Grantee; provided, however, that if a Grantee retires prior to 12 months following the commencement of a Performance Period, no Performance Shares shall be delivered. 

d.

If the Grantee's employment terminates during a Performance Period by reason of his or her discharge without Cause, the Grantee shall receive the Performance Shares, if any, which would otherwise have been payable to the Grantee for the Performance Period, prorated to the portion of the Performance Period actually worked by the Grantee; provided, however, that if a Grantee terminates employment by reason of his or her discharge without Cause prior to 12 months following the commencement of a Performance Period, no Performance Shares shall be delivered. 

e.

If the Grantee's employment terminates during a Performance Period or after the end of a Performance Period but prior to the date of settlement of the Performance Shares for any reason which would constitute grounds for the Grantee to voluntarily terminate his or her employment for “good reason” under the terms of the Grantee's employment agreement, if any, with the Company or a Subsidiary, the Committee shall have complete discretion in determining whether the Performance Shares will be paid to the Grantee, and, if the Performance Shares are determined to be payable, the number of Performance Shares to be delivered.

f.

If the Grantee's employment terminates after the end of a Performance Period but prior to the date of settlement of the Performance Shares due to his or her death, disability, Retirement or discharge without Cause, the Grantee shall receive the Performance Shares, if any, which would otherwise have been delivered to the Grantee for the Performance Period. 

g.

Notwithstanding the foregoing, in the event that there shall be a Change in Control during a Performance Period, the Grantee shall be entitled to receive, within 30 days of the Change in Control, Performance Shares equal to the Performance Shares payable to the Grantee if the plan target level for the Performance Period had been achieved prorated to the portion of the Performance Period actually worked by the Grantee through the date of the Change in Control.

4.

Transferability of Award.

  

The Award may not be transferred, pledged, assigned, or otherwise disposed of, except (i) by will or the laws of descent and distribution or (ii) for no consideration, subject to such rules and conditions as may be established by the Committee, to a member or members of the Grantee’s Immediate Family.  For purposes of this Award Agreement, the Grantee’s “Immediate Family” means the Grantee's children, stepchildren, grandchildren, parents, stepparents, grandparents, spouse, former spouse, siblings, nieces, nephews, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships or any person sharing the Grantee's household (other than a tenant or employee). 

5.

Miscellaneous Provisions.  

a.

Rights as a Stockholder.  Neither the Grantee nor the Grantee's representative shall have any rights as a stockholder with respect to any Shares subject to this Award until the Award has been settled and Share certificates, if any, have been issued to the Grantee, transferee or representative, as the case may be.  

b.

Regulatory Compliance and Listing.  The issuance or delivery of any certificates representing Shares issuable pursuant to this Agreement may be postponed by the Committee for such period as may be required to comply with any applicable requirements under the federal or state securities laws, any applicable listing requirements of the New York Stock Exchange, and any applicable requirements under any other Applicable Law, and the Company shall not be obligated to deliver any such Shares to the Grantee if either delivery thereof would constitute a violation of any provision of any law or of any regulation of any governmental authority or the New York Stock Exchange, or the Grantee shall not yet have complied fully with the provisions of Paragraph 2(e) hereof.  The Company shall not be liable to the Grantee for any damages relating to any delays in issuing the certificates to the Grantee, any loss of the certificates, or any mistakes or errors in the issuance of the certificates or the certificates themselves.

c.

Choice of Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.  

d.

Modification or Amendment.  This Agreement may only be modified or amended by written agreement executed by the parties hereto; provided, however, that the adjustments permitted pursuant to Section 16 and Section 18(b) of the Plan may be made without such written agreement. 

e.

Severability.  In the event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions of this Agreement, and this Agreement shall be construed and enforced as if such illegal or invalid provision had not been included.

f.

References to Plan.  All references to the Plan shall be deemed references to the Plan as may be amended.

g.

Headings.  The captions used in this Agreement are inserted for convenience and shall not be deemed a part of this Award for construction or interpretation.

h.

Interpretation.  Any dispute regarding the interpretation of this Agreement shall be submitted by the Grantee or by the Company forthwith to the Board or the Committee, which shall review such dispute at its next regular meeting.  The resolution of such dispute by the Board or the Committee shall be final and binding on all persons.  

i.

Section 409A Compliance.  To the extent applicable, it is intended that the Plan and this Agreement comply with the requirements of Section 409A of the Code and any related regulations or other guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service (“Section 409A”).  Any provision of the Plan or this Agreement that would cause this Award to fail to satisfy Section 409A shall have no force or effect until amended to comply with Section 409A, which amendment may be retroactive to the extent permitted by Section 409A.

j.

Signature in Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

PHILLIPS-VAN HEUSEN CORPORATION

 

By: ______________________________

 

Name: 

Title:

The Grantee represents that s/he is familiar with the terms and provisions thereof, and hereby accepts this Agreement subject to all of the terms and provisions thereof.  The Grantee has reviewed the Plan and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provisions of this Agreement.  The Grantee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan or this Agreement.  

Dated:______________________________   Signed:___________________________________

 

Grantee

EXHIBIT AFirst Amendment to Security and Credit Agreement dated March 29, 2007

    

    FIRST
      AMENDMENT TO CREDIT AND SECURITY AGREEMENT 

     

    THIS
      FIRST AMENDMENT (the “Amendment”), dated
      March 29th, 2007, is entered into by and between WELLS GARDNER ELECTRONICS
      CORPORATION, an Illinois corporation (“Wells Gardner”) and AMERICAN GAMING &
ELECTRONICS, INC., a Nevada corporation (“American”), Wells Gardner and
      American, each a Borrower are hereinafter, unless referenced individually,
      collectively referred to as (the “Borrower”), and WELLS FARGO BANK, NATIONAL
      ASSOCIATION (the “Lender”), acting through its Wells Fargo Business Credit
      operating division.

    

    RECITALS

    

    The
      Borrower and the Lender are parties to a
      Credit and Security Agreement dated August 21, 2006 (as amended from time to
      time, the “Credit Agreement”). Capitalized terms used in these recitals have the
      meanings given to them in the Credit Agreement unless otherwise
      specified.

    

    The
      Borrower has requested that certain
      amendments be made to the Credit Agreement, which the Lender is willing to
      make
      pursuant to the terms and conditions set forth herein.

    

    NOW,
      THEREFORE, in consideration of the
      premises and of the mutual covenants and agreements herein contained, it is
      agreed as follows:

    

    1. Terms
      used in this Amendment,
      which are defined in the Credit Agreement shall have the same meanings as
      defined therein, unless otherwise defined herein.

     

     

    
      	 	
              2.

            	
              The
                Credit Agreement is hereby amended and modified as
                follows:

            

    

     

    (a) Section
      1.1 Definitions shall be amended to read as follows:

     

    Subsection
      (i) of the definition of “Eligible Accounts” shall be amended to read as
      follows:

     

    (i) (A)
      That portion of Accounts
      unpaid ninety (90) days or more after the invoice date, or (B) with respect
      to
      Accounts due more than thirty (30) days, but not more than one hundred twenty
      (120) days, after their invoice date, that portion of such Accounts which is
      unpaid more than sixty (60) days past the stated due date, but not to exceed
      120
      days from invoice date.

     

    

    
      
         

         

        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    Subsection
      (xi) of the definition of
“Eligible Foreign Accounts” shall be amended to read as follows:

     

    (xi) Subject
      to Lender’s and the insurance underwriter’s approval, that portion of Accounts
      owed by any one account debtor that would permit Revolving Advances supported
      by
      such account debtor’s Accounts to exceed $500,000 at any one time with respect
      to all, excluding Aristocrat Leisure Industries PTY.LTD (limitation of
      $1,200,000 shall apply) and Recreativos Franco S.A. (limitation of $700,000
      shall apply) and Globexpsa (limitation of $600,000) shall apply), except as
      otherwise provided in (b)(ii) of the definition of “Borrowing
      Base”;

     

    3. No
      Other Changes.
      Except
      as explicitly amended by this Amendment, all of the terms and conditions of
      the
      Credit Agreement shall remain in full force and effect and shall apply to any
      advance or letter of credit thereunder.

    

    4. Conditions
      Precedent.
      This
      Amendment shall be effective when the Lender shall have received an executed
      original hereof, together with each of the following, each in substance and
      form
      acceptable to the Lender in its sole discretion:

    

    (a) Such
      other matters as the Lender may require.

    

    5. Representations
      and Warranties.
      The
      Borrower hereby represents and warrants to the Lender as follows:

    

    (a) The
      Borrower has all requisite power and authority to execute this
      Amendment and
      any
      other agreements or instruments required hereunder and to perform all of its
      obligations hereunder, and this Amendment and
      all
      such other agreements and instruments has been duly executed and delivered
      by
      the Borrower and constitute the legal, valid and binding obligation of the
      Borrower, enforceable in accordance with its terms.

    

    (b) The
      execution, delivery and performance by the Borrower of this
      Amendment and
      any
      other agreements or instruments required hereunder have been duly authorized
      by
      all necessary corporate action and do not (i) require any authorization,
      consent or approval by any governmental department, commission, board, bureau,
      agency or instrumentality, domestic or foreign, (ii) violate any provision
      of any law, rule or regulation or of any order, writ, injunction or decree
      presently in effect, having applicability to the Borrower, or the articles
      of
      incorporation or by-laws of the Borrower, or (iii) result in a breach of or
      constitute a default under any indenture or loan or credit agreement or any
      other agreement, lease or instrument to which the Borrower is a party or by
      which it or its properties may be bound or affected.

    (c) All
      of
      the representations and warranties contained in Article V of the Credit
      Agreement are correct on and as of the date hereof as though made on and as
      of
      such date, except to the extent that such representations and warranties relate
      solely to an earlier date.

    
      
         

         

        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    

    6. References.
      All references in the Credit Agreement to “this Agreement” shall be deemed to
      refer to the Credit Agreement as amended hereby; and any and all references
      in
      the Security Documents to the Credit Agreement shall be deemed to refer to
      the
      Credit Agreement as amended hereby.

    

    7. No
      Waiver. The execution of this Amendment and the acceptance
      of all other agreements and instruments related hereto
      shall not be deemed to be a waiver of any Default or Event of Default under
      the
      Credit Agreement or a waiver of any breach, default or event of default under
      any Security Document or other document held by the Lender, whether or not
      known
      to the Lender and whether or not existing on the date of this
      Amendment.

    

    8. Release.
      The Borrower hereby absolutely and unconditionally releases and forever
      discharges the Lender, and any and all participants, parent corporations,
      subsidiary corporations, affiliated corporations, insurers, indemnitors,
      successors and assigns thereof, together with all of the present and former
      directors, officers, agents and employees of any of the foregoing, from any
      and
      all claims, demands or causes of action of any kind, nature or description,
      whether arising in law or equity or upon contract or tort or under any state
      or
      federal law or otherwise, which the Borrower has had, now has or has made claim
      to have against any such person for or by reason of any act, omission, matter,
      cause or thing whatsoever arising from the beginning of time to and including
      the date of this Amendment, whether such claims, demands and causes of action
      are matured or unmatured or known or unknown.

    

    9. Costs
      and Expenses. The Borrower hereby reaffirms its agreement under the Credit
      Agreement to pay or reimburse the Lender on demand for all costs and expenses
      incurred by the Lender in connection with the Loan Documents, including without
      limitation all reasonable fees and disbursements of legal counsel. Without
      limiting the generality of the foregoing, the Borrower specifically agrees
      to
      pay all fees and disbursements of counsel to the Lender for the services
      performed by such counsel in connection with the preparation of this Amendment
      and the documents and instruments incidental hereto. The Borrower hereby agrees
      that the Lender may, at any time or from time to time in its sole discretion
      and
      without further authorization by the Borrower, make a loan to the Borrower
      under
      the Credit Agreement, or apply the proceeds of any loan, for the purpose of
      paying any such fees, disbursements, costs and expenses. 

    

    10. Miscellaneous.
      This Amendment may be executed in any number of counterparts, each of which
      when
      so executed and delivered shall be deemed an original and all of which
      counterparts, taken together, shall constitute one and the same
      instrument.

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
      executed as of the date first above written.

    
      
         

         

        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

    

    

    
      	
               

              WELLS
                FARGO BANK,

              NATIONAL
                ASSOCIATION

               

              By
                _/s/
                Brian T. Sprink____________________

              Brian
                T. Sprink

              Its:
                Vice President

            	
               

              WELLS
                GARDNER ELECTRONICS CORPORATION

               

              By
                _/s/
                James F. Brace______________

              James
                F. Brace

              Its:
                VP, Secretary, Treasurer and CFO

            
	 	
               

              AMERICAN
                GAMING & ELECTRONICS, INC.

               

              By
                _/s/
                James F. Brace______________

              James
                F. Brace

              Its:
                VP and CFO

            

    

    

     

    

    
      
        
        

      

      
        -4-

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