Document:

Exhibit 10.1

 

EXECUTION VERSION

 

SECOND AMENDMENT

 

SECOND AMENDMENT, dated as of November 27, 2018 (this “Amendment”), to the First Lien Credit Agreement, dated as of June 5, 2015 (as amended by that certain First Amendment, dated as of July 27, 2017, and as further amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”), among AT HOME HOLDING III INC., a Delaware corporation (the “Borrower”), AT HOME HOLDING II INC., a Delaware corporation (“Holdings”), each lender from time to time party thereto (collectively, the “Lenders” and individually, a “Lender”) and BANK OF AMERICA, N.A., as administrative agent and as collateral agent (in such capacities, the “Administrative Agent”).

 

W I T N E S S E T H:

 

WHEREAS, subject to the terms and conditions of the Credit Agreement, the Borrower may establish Incremental First Lien Term Commitments and Incremental First Lien Term Loans by entering into an Incremental First Lien Term Commitments Amendment;

 

WHEREAS, pursuant to Section 2.12 of the Credit Agreement, the Borrower has requested Incremental Term Loans, in an aggregate principal amount of $50,000,000 (the “2018 Incremental Term Loans”), which shall constitute Term Loans under the Credit Agreement (and shall be a part of, and added to, the outstanding Term Loan tranche) and the proceeds of which shall be used for working capital and other general corporate purposes of the Borrower and its Restricted Subsidiaries; and

 

NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

SECTION 1.   Defined Terms; Rules of Construction.  Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement. The interpretive provisions set forth in Section 1.02 of the Credit Agreement shall apply herein.

 

SECTION 2.   2018 Incremental Term Loans and Amendments to Credit Agreement.

 

2.1                               References Generally. On and after the Second Amendment Effective Date (as defined herein), each reference in the Credit Agreement (including references to the Credit Agreement as amended hereby) to “this Agreement” (and indirect references such as “hereunder”, “hereby”, “herein”, “hereof” and words of similar import) shall be deemed to be references to the Credit Agreement as amended hereby.

 

2.2                               2018 Incremental Term Lender. The Lender party hereto (the “2018 Incremental Term Lender”) hereby agrees to commit to provide its Incremental First Lien Term Commitment set forth on Schedule A hereto, on the terms and conditions set forth herein. The 2018 Incremental Term Lender (i) confirms that is has received a copy of the Credit Agreement and the other Loan Documents and such other information as it has deemed appropriate to make

 

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its own credit analysis and decision to enter into this Amendment, (ii) agrees that it will, independently and without reliance on the Administrative Agent or any other Lender or Agent and based on such documents and information as it shall deem appropriate, continue to make its own credit decisions in taking or not taking action under the Credit Agreement, (iii) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to the Administrative Agent by the terms thereof, together with such powers as are reasonably incidental thereto, and (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender. The 2018 Incremental Term Lender hereby agrees that its Incremental First Lien Term Commitment and 2018 Incremental Term Loans will be made on the terms set forth in this Amendment on the Second Amendment Effective Date.

 

2.3                               2018 Incremental Term Loans. The 2018 Incremental Term Loans shall be denominated in Dollars and made in a single drawing on the Second Amendment Effective Date. Upon the funding of the 2018 Incremental Term Loans on the Second Amendment Effective Date, the Incremental First Lien Term Commitments of the 2018 Incremental Term Lender shall terminate.

 

2.4                               Applicable Rate. The Applicable Rate for the 2018 Incremental Term Loans shall be the same, as of any date of determination, as the Applicable Rate for the existing Term Loans as in effect immediately prior to the Second Amendment Effective Date as of such date of determination.

 

2.5                               Principal Payments. Section 2.05(a) of the Credit Agreement is amended and restated as follows:

 

“(a)                           Term Loans.  The Borrower shall repay to the Administrative Agent for the ratable account of the Term Lenders the aggregate principal amount of all Term Loans outstanding in consecutive quarterly installments as follows (which installments shall, to the extent applicable, be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Sections 2.03 and 2.04, or be increased as a result of any increase in the amount of Term Loans pursuant to Section 2.12 (such increased amortization payments to be calculated in the same manner (and on the same basis) as the schedule set forth below for the Term Loans made as of the Closing Date), with each such installment due and payable on each date set forth below (or, if such day is not a Business Day, on the immediately preceding Business Day):

 

	
Date
    	
 
    	
Term Loan Principal Amortization Payment
    
	
1/31/2019
    	
 
    	
$879,533.68
    
	
4/30/2019
    	
 
    	
$879,533.68
    
	
7/31/2019
    	
 
    	
$879,533.68
    
	
10/31/2019
    	
 
    	
$879,533.68
    
	
1/31/2020
    	
 
    	
$879,533.68
    
	
4/30/2020
    	
 
    	
$879,533.68
    
	
7/31/2020
    	
 
    	
$879,533.68
    

 

2

 

	
Date
    	
 
    	
Term Loan Principal Amortization Payment
    
	
10/31/2020
    	
 
    	
$879,533.68
    
	
1/31/2021
    	
 
    	
$879,533.68
    
	
4/30/2021
    	
 
    	
$879,533.68
    
	
7/31/2021
    	
 
    	
$879,533.68
    
	
10/31/2021
    	
 
    	
$879,533.68
    
	
1/31/2022
    	
 
    	
$879,533.68
    
	
4/30/2022
    	
 
    	
$879,533.68
    
	
Maturity Date of   the Term Facility
    	
 
    	
Remaining   Balance
    

 

provided, however, that the final principal repayment installment of each Class of Term Loans shall be repaid on the Maturity Date for such Class of Term Loans and in any event shall be in an amount equal to the aggregate principal amount of all Term Loans of such Class outstanding on such date.”.

 

2.6                               Prepayments. The Borrower may from time to time prepay the Term Loans (including the 2018 Incremental Term Loans) in whole or part subject to the terms and conditions of Section 2.03(a) of the Credit Agreement; provided that any optional prepayment of any portion of the outstanding Term Loans (including the 2018 Incremental Term Loans) in connection with a Repricing Transaction (including any mandatory assignment pursuant to Section 3.07 in connection therewith) and (y) any prepayment of Term Loans (including the 2018 Incremental Term Loans) pursuant to Section 2.03(b)(iii) in connection with a Repricing Transaction or any amendment to this Amendment in connection with a Repricing Transaction (in each case including any mandatory assignment pursuant to Section 3.07 in connection therewith), in each case of clause (x) and clause (y) on or prior to the date that is six months following the hereof shall be subject to a premium equal to the principal amount of Term Loans (including the 2018 Incremental Term Loans) subject to such prepayment or the principal amount of Term Loans (including the 2018 Incremental Term Loans) affected by such amendment (or mandatorily assigned in connection therewith), as applicable, multiplied by 1.00%.  Any prepayment of all or a portion of the outstanding Term Loans after the date that is six months following the date hereof may be made without premium or penalty.

 

2.7                               Terms Generally. Other than as set forth herein, for all purposes under the Credit Agreement and the other Loan Documents (including this Amendment (unless the context dictates otherwise)), the 2018 Incremental Term Loans shall have the same terms as the Term Loans outstanding under the Credit Agreement immediately prior to the Second Amendment Effective Date and shall be treated for purposes of voluntary and mandatory prepayments and all other terms as the same Class of Term Loans as the Term Loans outstanding under the Credit Agreement immediately prior to the Second Amendment Effective Date. Upon the funding of the 2018 Incremental Term Loans on the Second Amendment Effective Date, the 2018 Incremental Term Loans shall automatically and without further action by any Person constitute Term Loans for all purposes of the Credit Agreement and the other Loan Documents. The 2018 Incremental Term Loans will trade fungibly with the Term Loans outstanding under the Credit Agreement immediately prior to the Second Amendment Effective Date. The Administrative Agent shall take any and all action as may be reasonably necessary to ensure that the 2018 Incremental Term Loans are included in each Borrowing and repayment of Term Loans on a pro rata basis. In furtherance

 

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of the foregoing, on the Second Amendment Effective Date, there shall commence an initial Interest Period with respect to the 2018 Incremental Term Loans, which Interest Period shall end on the last day of the Interest Period applicable to the existing Term Loans as in effect immediately prior to the Second Amendment Effective Date.

 

SECTION 3.   Upfront Fees. The Borrower agrees to pay to the 2018 Incremental Term Lender an upfront fee equal to 0.73% of the aggregate amount of such 2018 Incremental Term Loans funded by the 2018 Incremental Term Lender on the Second Amendment Effective Date (the “Upfront Fees”). All Upfront Fees shall be payable in full on the Second Amendment Effective Date and may, as agreed by the Borrower and the Administrative Agent, be netted against the proceeds of the funding of the 2018 Incremental Term Loans.

 

SECTION 4.   Conditions to Effectiveness.  This Amendment and the provisions hereof shall become effective on the date (the “Second Amendment Effective Date”) on which:

 

(a)                                 Amendment.  The Administrative Agent shall have received a counterpart of this Amendment, executed and delivered by a duly authorized officer of each of (i) the Borrower, (ii) Holdings, (iii) the Administrative Agent and (iv) the 2018 Incremental Term Lender.

 

(b)                                 Payment of Fees, Expenses.  The Administrative Agent shall have received (i) all fees payable thereto or to any Lender on or prior to the Second Amendment Effective Date and (ii) all fees and expenses as required pursuant to Section 10.04 of the Credit Agreement and Section 3 and Section 5 of this Amendment or otherwise in connection with this Amendment (including, without limitation, the reasonable out-of-pocket fees, charges and disbursements of counsel to the Administrative Agent).

 

(c)                                  Representations and Warranties.  The representations and warranties set forth in Section 6 of this Amendment shall be, both immediately before and after giving effect to this Amendment, true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) on and as of the Second Amendment Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) as of such earlier date.

 

(d)                                 No Defaults.  No Default or Event of Default shall have occurred and be continuing on the Second Amendment Effective Date immediately after giving effect to this Amendment.

 

(e)                                  Acknowledgement and Confirmation.  The Administrative Agent shall have received an Acknowledgment and Confirmation in the form of Annex A hereto from a Responsible Officer of each Loan Party.

 

(f)                                   Borrowing Request. The Administrative Agent shall have received a Request for Credit Extension with respect to the 2018 Incremental Term Loans in accordance with Section 2.02 of the Credit Agreement.

 

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(g)                                  Other Deliverables. The Administrative Agent’s receipt of the following, each of which shall be originals or facsimiles (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, each dated as of the Second Amendment Effective Date (or, in the case of certificates of governmental officials, a recent date before the Second Amendment Effective Date) and each in form and substance reasonably satisfactory to the Administrative Agent and its counsel:

 

(i) customary certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent or the Collateral Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Amendment and the other Loan Documents to which such Loan Party is a party or is to be a party and authorizing the execution, delivery and performance of the Loan Documents to which such Loan Party is a party and, in the case of the Borrower, the borrowings hereunder, and that such resolutions have not been modified, rescinded or amended and are in full force and effect;

 

(ii) such documents and certifications (including, either certified copies of the Organization Documents of each Loan Party or a certification by a Responsible Officer of each Loan party that there have been no changes to the Organization Documents of such Loan Party since the Closing Date or prior date of delivery of such Organization Documents and good standing certificates) as the Administrative Agent or the Collateral Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and that each of the Borrower and the Guarantors is validly existing, in good standing and qualified to engage in business (as applicable) in each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, except to the extent that failure to be so qualified would not have a Material Adverse Effect;

 

(iii) an opinion of Fried, Frank, Harris, Shriver & Jacobson LLP, counsel to the Loan Parties, addressed to each Agent and each Lender;

 

(iv) a customary certificate from the chief financial officer of Holdings, certifying that Holdings and its Subsidiaries, on a consolidated basis after giving effect to the transactions contemplated hereby, are Solvent;

 

(v) audited consolidated balance sheets and related statements of income, stockholders’ equity and cash flows of the Borrower and its Subsidiaries for each of the two most recent annual fiscal periods ended immediately prior to the Second Amendment Effective Date; and

 

(vi) a certificate signed by a Responsible Officer of the Borrower certifying (A) that the conditions specified in Sections 4(c) and (d) hereof have been satisfied, and (B) that there has been no event or circumstance since January 27, 2018 that has had or could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

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(h) KYC Information. The Administrative Agent shall have received, at least three (3) Business Days prior to the Second Amendment Effective Date, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act, as is reasonably requested in writing by the Administrative Agent at least ten (10) Business Days prior to the Second Amendment Effective Date.

 

(i) Beneficial Ownership. At least three (3) days prior to the Second Amendment Effective Date, if the Borrower qualifies as a “legal entity customer” under 31 C.F.R. § 1010.230 (the “Beneficial Ownership Regulation”), the Borrower shall deliver, to each Lender (including the 2018 Incremental Term Lender) that so requests, a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation in relation to the Borrower on the form published by the Loan Syndications and Trading Association, Inc.

 

SECTION 5.   Payment of Expenses. The Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket costs and expenses incurred in connection with this Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees, charges and disbursements of counsel to the Administrative Agent.

 

SECTION 6.   Representations and Warranties.

 

(a)                                 The Borrower hereby represents and warrants that (a) each of the representations and warranties of the Borrower and each other Loan Party contained in Article V of the Credit Agreement or any other Loan Document shall be, both immediately before and after giving effect to this Amendment, true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) as if made on and as of the Second Amendment Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) as of such earlier date, (b) both immediately before and after giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing, (c) this Amendment has been duly executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as such enforceability may be limited by (x) bankruptcy, insolvency, reorganization, receivership, moratorium or other laws affecting creditors’ rights generally and (y) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (d) it is not and will not be (i) an employee benefit plan subject to Title I of ERISA, (ii) a plan or account subject to Section 4975 of the Code, (iii) an entity deemed to hold “plan assets” of any such plans or accounts for purposes of ERISA or the Code, or (iv) a “governmental plan” within the meaning of ERISA.

 

(b)                                 The 2018 Incremental Term Lender represents and warrants as of the Second Amendment Effective Date to the Administrative Agent and its Affiliates, and not, for the avoidance of doubt, for the benefit of the Borrower or any other Loan Party, that the 2018 Incremental Term Lender is not and will not be (1) an employee benefit plan subject to Title I of ERISA, (2) a plan or account subject to Section 4975 of the Code, (3) an entity deemed to hold

 

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“plan assets” of any such plans or accounts for purposes of ERISA or the Code, or (4) a “governmental plan” within the meaning of ERISA.

 

SECTION 7.   GOVERNING LAW; WAIVER OF JURY TRIAL; CONSENT TO SERVICE OF PROCESS.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.  EACH PARTY HERETO HEREBY AGREES THAT THE PROVISIONS OF SECTION 10.15 AND 10.16 OF THE CREDIT AGREEMENT ARE HEREBY INCORPORATED BY REFERENCE HEREIN, MUTATIS MUTANDIS.

 

SECTION 8.   Amendments; Execution in Counterparts.  (a) This Amendment shall not constitute an amendment of any other provision of the Credit Agreement or any other Loan Document not referred to herein and shall not be construed as a waiver or consent to any further or future action on the part of the Borrower that would require a waiver or consent of the Lenders or the Administrative Agent.  Except as expressly amended hereby, the provisions of the Credit Agreement and each of the other Loan Documents are and shall remain in full force and effect and the Borrower agrees, with respect to each Loan Document to which it is a party, that all of its obligations, liabilities and indebtedness under such Loan Document, as amended hereby, including guarantees and grants of security interests, shall remain in full force and effect. This Amendment and the Acknowledgment and Confirmation shall each constitute a Loan Document for the purposes of the Credit Agreement and the other Loan Documents.  This Amendment may not be amended, nor may any provision hereof be waived, amended or modified except in writing signed by the Borrower, the Administrative Agent and the 2018 Incremental Term Lender.

 

(b)                                 This Amendment may be executed in one or more counterparts (and by different parties hereto in different counterparts), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery by telecopier or other electronic transmission of an executed counterpart of a signature page to this Amendment shall be effective as delivery of an original executed counterpart of this Amendment.  The Administrative Agent may also require that any such documents and signatures delivered by telecopier or other electronic transmission be confirmed by a manually-signed original thereof; provided, that the failure to request or deliver the same shall not limit the effectiveness of any document or signature delivered by telecopier or other electronic transmission.

 

(c)                                  Each party hereto acknowledges and agrees that its execution and delivery of a counterpart of a signature page to this Amendment to the Administrative Agent is irrevocable and binding on such party and its respective successors and assigns even if such signature page is submitted prior to the effectiveness of any amendment contained herein.

 

SECTION 9.   Integration.  This Amendment and the other Loan Documents constitute the entire contract between and among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.

 

SECTION 10.   Severability.  To the fullest extent permitted by law, any provision of this Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without

 

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affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

 

SECTION 11.   Indemnification.  For the avoidance of doubt, Section 10.05 of the Credit Agreement shall apply to this Amendment mutatis mutandis.

 

SECTION 12.   Headings.  Section headings used herein are for convenience of reference only, are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment.

 

[Signature Pages Follow]

 

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

 

	
 
    	
AT HOME HOLDING III   INC., as the Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ MARY JANE BROUSSARD
    
	
 
    	
 
    	
Name:
    	
Mary Jane Broussard
    
	
 
    	
 
    	
Title:
    	
Senior Vice President, General Counsel and Secretary
    
	
 
    	
 
    
	
 
    	
AT HOME HOLDING II   INC., as Holdings
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ MARY JANE BROUSSARD
    
	
 
    	
 
    	
Name:
    	
Mary Jane Broussard
    
	
 
    	
 
    	
Title:
    	
Senior Vice President, General Counsel and Secretary
    

 

[Second Amendment to Credit Agreement — Signature Page]

 

 

	
 
    	
BANK   OF AMERICA, N.A., as Administrative Agent and Collateral Agent
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ CHARLENE WRIGHT-JONES
    
	
 
    	
 
    	
Name:
    	
Charlene   Wright-Jones
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

[Second Amendment to Credit Agreement — Signature Page]

 

 

	
 
    	
BANK   OF AMERICA, N.A., as the 2018 Incremental Term Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ GRANT GILBERT
    
	
 
    	
 
    	
Name:
    	
Grant   Gilbert
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[Second Amendment to Credit Agreement — Signature Page]

 

 

Schedule A

 

Incremental First Lien Term Commitment

 

	
Lender
    	
 
    	
Commitment
    	
 
    	
Pro Rata Share
   (Facility)
    	
 
    
	
Bank of America,   N.A.
    	
 
    	
$
    	
50,000,000.00
    	
 
    	
100.000000000
    	
%
    
	
Total
    	
 
    	
$
    	
50,000,000.00
    	
 
    	
100.000000000
    	
%
    

 

 

Annex A

to First Amendment

 

ACKNOWLEDGMENT AND CONFIRMATION

 

(a)   Reference is made to the SECOND AMENDMENT, dated as of November 27, 2018 (the “Amendment”; capitalized terms used herein without definition shall have the meanings therein), to the FIRST LIEN CREDIT AGREEMENT, dated as of June 5, 2015 (as amended by that certain First Amendment, dated as of July 27, 2017, and as further amended, restated, supplemented or otherwise modified from time to time prior to the effectiveness of the Amendment, the “Credit Agreement”), among AT HOME HOLDING III INC., a Delaware corporation (the “Borrower”), AT HOME HOLDING II INC., a Delaware corporation (“Holdings”), each lender from time to time party thereto (collectively, the “Lenders” and individually, a “Lender”), BANK OF AMERICA, N.A., as administrative agent and as collateral agent (in such capacities, the “Administrative Agent”) and the other agents parties thereto.

 

(b)           The Credit Agreement is being amended pursuant to the Amendment as set forth therein (as so amended, the “Amended Credit Agreement”).  Each of the parties hereto hereby agrees, with respect to each Loan Document to which it is a party:

 

(i)            all of its obligations, liabilities and indebtedness under such Loan Document (including with respect to all Term Loans, including the 2018 Incremental Term Loans) shall remain in full force and effect on a continuous basis regardless of the effectiveness of the Amendment;

 

(ii)           all of the Liens and security interests created and arising under such Loan Document (including with respect to all Term Loans, including the 2018 Incremental Term Loans) remain in full force and effect on a continuous basis, and the perfected status and priority of each such Lien and security interest continues in full force and effect on a continuous basis, unimpaired, uninterrupted and undischarged, regardless of the effectiveness of the Amendment, as collateral security for its obligations, liabilities and indebtedness under the Amended Credit Agreement and related guarantees; and

 

(iii)          each of the representations and warranties made by such party contained in any Loan Document (as defined in the Amended Credit Agreement) are true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) on and as of the Second Amendment Effective Date (as defined in the Amended Credit Agreement), except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) as of such earlier date.

 

(c)           This Acknowledgment and Confirmation shall constitute a “Loan Document” for all purposes of the Amended Credit Agreement and the other Loan Documents.

 

 

(d)   THIS ACKNOWLEDGMENT AND CONFIRMATION SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

(e)           This Acknowledgment and Confirmation may be executed by one or more of the parties to this Acknowledgment and Confirmation on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Acknowledgment and Confirmation by email or facsimile transmission (or other electronic transmission) shall be effective as delivery of a manually executed counterpart hereof.

 

[Signature Pages Follow]

 

 

	
 
    	
AT HOME HOLDING III   INC., as the Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Mary Jane Broussard
    
	
 
    	
 
    	
Title:
    	
Senior Vice President, General Counsel and Secretary
    
	
 
    	
 
    
	
 
    	
AT HOME HOLDING II   INC., as Holdings
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Mary Jane Broussard
    
	
 
    	
 
    	
Title:
    	
Senior Vice President, General Counsel and Secretary
    
	
 
    	
 
    	
 
    	
 
    
	
:
    	
AT HOME COMPANIES LLC
    
	
 
    	
AT HOME STORES LLC
    
	
 
    	
AT HOME PROPERTIES LLC
    
	
 
    	
1600 EAST PLANO   PARKWAY, LLC
    
	
 
    	
2650 WEST INTERSTATE   20, LLC
    
	
 
    	
11501 BLUEGRASS PARKWAY   LLC
    
	
 
    	
12990 WEST CENTER ROAD   LLC
    
	
 
    	
1944 SOUTH GREENFIELD   ROAD LLC
    
	
 
    	
4700 GREEN ROAD LLC
    
	
 
    	
4304 WEST LOOP 289 LLC
    
	
 
    	
642 SOUTH WALNUT AVENUE   LLC
    
	
 
    	
15065 CREOSOTE ROAD LLC
    
	
 
    	
335 N. ACADEMY   BOULEVARD (1031), LLC
    
	
 
    	
1660 W. MIDWAY   BOULEVARD (1031), LLC
    
	
 
    	
3003 WEST VINE, LLC
    
	
 
    	
7613 NORTH EAST LOOP   1604, LLC
    
	
 
    	
334 CHICAGO DRIVE, LLC
    
	
 
    	
4949 GREENWOOD DRIVE,   LLC
    
	
 
    	
2251 SOUTHWYCK BLVD,   LLC
    
	
 
    	
1605 BUFORD HWY, LLC
    
	
 
    	
1267 CENTRAL PARK DR,   LLC
    
	
 
    	
4801 183A TOLL ROAD,   LLC
    
	
 
    	
19000 LIMESTONE   COMMERCIAL DR, LLC
    
	
 
    	
5501 GROVE BLVD, LLC
    
	
 
    	
1600 W. KELLY AVENUE,   LLC
    
	
 
    	
1919 WELLS RD, LLC
    
	
 
    	
7697 WINCHESTER RD, LLC
    
	
 
    	
1000 TURTLE CREEK DRIVE   LLC
    
	
 
    	
2201 PORTER CREEK DR   LLC
    
	
 
    	
2000 E. SANTA FE LLC
    

 

 

	
 
    	
301 S TOWN EAST MALL DR   LLC
    
	
 
    	
621 SW 19TH STREET LLC
    
	
 
    	
4200 AMBASSADOR CAFFERY   PKWY LLC
    
	
 
    	
4405 PHEASANT RIDGE DR   LLC
    
	
 
    	
6360 RIDGEWOOD COURT DR   LLC
    
	
 
    	
AT HOME RMS INC.
    
	
 
    	
AT HOME GIFT CARD LLC
    
	
 
    	
AT HOME PROCUREMENT   INC.
    
	
 
    	
1376 E. 70TH STREET LLC
    
	
 
    	
25 PACE BLVD LLC
    
	
 
    	
2780 WILMA RUDOLPH   BOULEVARD LLC
    
	
 
    	
E. WILLIAMS FIELD RD   LLC
    
	
 
    	
3000 KIRBY DRIVE LLC
    
	
 
    	
3551 S 27TH STREET LLC
    
	
 
    	
4833 WATERVIEW MEADOW   DR LLC
    
	
 
    	
10800 ASSEMBLY PARK DR   LLC
    
	
 
    	
300  TANGER OUTLET BLVD LLC
    
	
 
    	
361 NEWNAN CROSSING   BYPASS LLC
    
	
 
    	
535 PLEASANT GROVE RD   LLC
    
	
 
    	
602 US HWY 287 LLC
    
	
 
    	
1050 W. ELLIOTT RD LLC
    
	
 
    	
1811 MONOCACY BLVD LLC
    
	
 
    	
2016 GRAND CYPRESS DR   LLC
    
	
 
    	
2301 EARL RUDDER FRWY S   LLC
    
	
 
    	
2520 MACARTHUR RD LLC
    
	
 
    	
3002 FIREWHEEL PARKWAY   LLC
    
	
 
    	
3015 W 86TH ST LLC
    
	
 
    	
4825 MARBURG AVENUE LLC
    
	
 
    	
5540 STATE HIGHWAY 121   LLC
    
	
 
    	
7050 WATTS RD LLC
    
	
 
    	
8651 AIRPORT FREEWAY   LLC
    
	
 
    	
9570 FIELDS ERTEL ROAD   LLC
    
	
 
    	
15255 N NORTHSIGHT BLVD   LLC
    
	
 
    	
24340 NORTHWEST FREEWAY   LLC, as Subsidiary Guarantors
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Mary Jane Broussard
    
	
 
    	
 
    	
Title:
    	
Senior Vice President, General Counsel and SecretaryExhibit

Exhibit 10.32

EMPLOYMENT AGREEMENT
This Employment Agreement (“Agreement”) is entered into and effective as of September 4, 2018 (“Effective Date”), between IEC Electronics Corp. (“Company”) and Thomas L. Barbato (“Executive”).
WHEREAS, the Company and the Executive wish for the Company to continue to employ the Executive upon the terms and conditions as set forth in this Agreement; 
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which the parties acknowledge mutually, the parties agree as follows:

1.    Employment and Duties.

1.1    Employment by the Company.  The Company agrees to employ the Executive to render exclusive and full-time services in the capacity of Chief Financial Officer and Senior Vice President, subject to the control and direction of the Company’s Chief Executive Officer (“CEO”).    

1.2    Duties/Authority.  The Executive shall be responsible for conducting the Company’s business and fiscal affairs and for the general supervision of and control over the Company’s financial assets, business interests, and agents, in each case subject to the CEO’s control and direction.  The Executive’s duties shall be consistent with the duties, responsibilities, and authority generally incident to the position of CFO and shall include such other reasonably related duties as may be assigned to him from time to time by the CEO.  In performing his duties, Executive agrees to abide by all bylaws, policies, practices, procedures, and rules of the Company.  

1.3    Corporate Opportunities.  The Executive agrees that he shall not take personal advantage of any business opportunities that arise during employment that may benefit the Company.  The Executive must promptly report to the CEO, for the Company’s consideration, all material facts regarding such opportunities. 
2.    Term of Employment.  The term of this Agreement shall commence on the Effective Date and continue until terminated as provided in Section 4 below.    

3.    Compensation.

3.1    Salary.  As consideration for services rendered, the Company shall pay the Executive an annual salary of $235,000 (“Base Salary”), payable in equal installments at such intervals as are the usual custom of the Company, but not less frequently than monthly.  The Executive’s Base Salary will be reviewed periodically for increases by the CEO. Unless offset pursuant to Section 3.8, Executive’s Base Salary shall not be decreased.  

3.2    Annual Bonus.  Pursuant to the terms of the Company’s Management Incentive Plan or any successor arrangement thereto (“MIP”), the Executive shall be eligible to receive a performance bonus for each fiscal year of the Company, which shall be subject to the Executive’s continued employment with the Company and the accomplishment of the specific performance goals established by the Compensation Committee for such fiscal year (“Annual Bonus”), with a target value of at least 45% of the Executive’s Base Salary for such fiscal year.  The Compensation Committee, in its sole discretion, but in consultation with the CEO, shall establish the following for the MIP for each fiscal year:  (a) the applicable performance criteria and goals (“Targets”); (b) the relative weightings, if any, of the 

Exhibit 10.32

Targets; and (c) the percentage of the target Annual Bonus that the Executive will be able to earn upon achievement of certain percentages of the Targets, including the percentages of performance in excess of 100% of Target in which event a higher Annual Bonus will be earned, and which may include minimum percentages below which no Annual Bonus will be earned.  The calculation of the Annual Bonus shall be determined by the Compensation Committee, in its reasonable discretion following the completion of the Company’s audit for such fiscal year, and the Annual Bonus for a given fiscal year shall be paid within 15 days of the receipt by the Company of the audited financial statements for such fiscal year, but no later than the 15th day of the third month following the end of such fiscal year.  If this Agreement terminates other than at the end of a fiscal year and if the Executive is entitled to a pro rata Annual Bonus for such partial fiscal year pursuant to Section 5 hereof, such pro rata Annual Bonus shall be equal to the Annual Bonus that the Executive would have received under the MIP, based on the Target for such fiscal year, multiplied by a fraction, the numerator of which shall be the number of days during such fiscal year he was so employed and the denominator of which shall be the number of days in such fiscal year (“Pro Rata Annual Bonus”).  The Executive also may be entitled to the Annual Bonus for the fiscal year prior to the fiscal year in which the Executive is terminated, to the extent not yet paid (“Preceding Bonus”).  The Executive shall be entitled to receive the Preceding Bonus and/or the Pro Rata Bonus, as applicable, at the time the Annual Bonus is payable pursuant to the terms of the MIP.  The Annual Bonus shall, in all respects, be subject to the terms of the MIP.  

3.3    LTIP Incentive.  The Executive will be eligible to participate in the long-term incentive award program of the Company on such terms as are established by the Compensation Committee from time to time (any such awards and any stock options granted pursuant to Section 3.4 of this Agreement, “LTIP Awards”). 
    
3.4    Sign-On Award.  Promptly following the Effective Date of this Agreement and subject to the approval of the Compensation Committee, the Company shall grant to the Executive a stock option under the terms of the Company’s 2010 Omnibus Incentive Compensation Plan and applicable award agreement thereunder, to purchase up to 100,000 of the Company’s Common Stock.  Unless the Compensation Committee provides otherwise, any stock option granted pursuant to this Section 3.3 shall have an exercise price per share equal to the fair market value of a share of Common Stock on the date of grant thereof, and subject to the Executive’s continued employment with the Company, shall vest and become exercisable as follows:  25% will vest upon the first anniversary of the date of grant; 25% will vest upon the second anniversary of the date of grant; 25% will vest upon the third anniversary of the date of grant; and the remaining 25% will vest upon the fourth anniversary of the date of grant.  

3.5    Participation in Employee Benefit Plans.  The Executive shall be permitted, if and to the extent eligible, to participate in any employee welfare and health benefit plans (including, but not limited to, life insurance, health and medical, dental, and disability insurance plans) and other employee benefit plans (including, but not limited to, qualified pension plans) that are available generally to other senior executives of the Company.  The Executive shall be required to comply with any conditions required for coverage by such plans and shall comply with and be entitled to benefits only in accordance with the terms and conditions of such plans as they may be amended from time to time.  

3.6    Expenses.  The Company shall pay or reimburse the Executive for all reasonable expenses (including travel expenses) actually incurred or paid by the Executive during his employment in the performance of the Executive’s services under this Agreement.  Such reimbursement shall be paid upon presentation of supporting expense statements, receipts or such other supporting information as the Company may require, and in accordance with the Company’s reimbursement policies generally applicable to other senior executives.

Exhibit 10.32

3.7    Paid Time Off.  The Executive shall be entitled to twenty-seven (27) days of paid time off accrued annually in accordance with the IEC policy.  

3.8    Clawback.  In the event the Company is required to prepare an accounting restatement of its financial statements due to the Company’s material noncompliance with any financial reporting requirements under the Securities Act of 1933, as amended on the Securities Exchange Act of 1934 as amended, and the accounting restatement results from the Executive’s willful or grossly negligent conduct or from Executive’s financial dishonesty, the Executive shall reimburse or forfeit (as the case may be) any compensation received or due Executive pursuant to Sections 3.2, 3.3 and 3.4 during the three (3) year period preceding the date on which the Company is required to prepare an accounting restatement.  The amount to be recovered shall be the excess of the compensation paid to the Executive pursuant to Sections 3.2, 3.3 and 3.4 based on the erroneous dates over the amount of compensation pursuant to Section 3.2, 3.3 and 3.4 that would have been paid to the Executive had it been based on the restated results, as determined by the Company’s Board of Directors (Board”).   For purposes of this Section 3.8, “financial dishonesty” shall mean a material misstatement or material omission in the Company’s disclosure documents including but not limited to documents filed or furnished pursuant to the Securities Exchange Act of 1934 as amended, press releases or the Company’s disclosure documents filed under the Securities Act of 1933, as amended.
The Board will determine, in its sole discretion, the method for recouping compensation paid pursuant to Sections 3.2, 3.3 and 3.4 hereunder which may include, without limitation:
(a)     requiring reimbursement of cash incentive compensation previously paid;
(b)     seeking recovery of any gain realized on the vesting, exercise, settlement, sale, transfer or other disposition of any equity-based awards;
(c)     offsetting the recouped amount from any compensation otherwise owed by the Company to the Executive;
(d)     cancelling outstanding vested or unvested equity awards; and/or
(e)     taking any other remedial and recovery action permitted by law, as determined by the Board.

4.    Termination or Removal from Duties.
4.1    Termination Upon Death.  This Agreement shall terminate automatically upon the Executive’s death. 
4.2    Removal from Position Upon Disability.  If during the Executive’s employment, as a result of a physical or mental incapacity or infirmity, the Executive is unable to perform the essential functions of his job with or without reasonable accommodation for a period of six (6) continuous months, the Executive shall be deemed disabled (“Disability”) and the Company, by written notice to the Executive, shall have the right to remove him from his position.  The Executive’s status as an inactive employee of the Company shall continue after such removal for the period of time that his Disability continues.  However, the Company shall have no obligation to reinstate or otherwise continue the Executive’s employment if he should recover from his Disability and any such termination shall not constitute a termination without Cause or without Good Reason (as herein defined).  The existence of a 

Exhibit 10.32

Disability shall be determined by a reputable, licensed physician selected by the Company in good faith, whose determination shall be final and binding on the parties.
4.3    Termination for Cause.  The Company may at any time, by written notice to the Executive, terminate the Executive’s employment hereunder for Cause.  For purposes hereof, the term “Cause” shall mean:  (A) Executive’s conviction of or pleading guilty or no contest to a felony; (B) failure or refusal of the Executive in any material respect (i) to perform the duties of his employment or to follow the lawful and proper directives of the Board, provided such duties or directives are consistent with this Agreement and such duties or directives have been given to the Executive in writing, or (ii) to comply with the reasonable and substantial written policies, practices, standards or regulations of the Company (so long as same are not inconsistent with this Agreement) as may be established from time to time, if such failure or refusal under either clause (i) or clause (ii) continues uncured for a period of thirty (30) days after written notice thereof, specifying the nature of such failure or refusal and requesting that it be cured, is given by the Company to the Executive; (C) any willful or intentional act of the Executive committed for the purpose, or having the reasonably foreseeable effect, of injuring the Company, its business or reputation, or of improperly or unlawfully converting for the Executive’s own personal benefit any property of the Company, if such act or conduct is not cured or capable of cure within a period of thirty (30) days after written notice thereof, specifying the nature of such failure or refusal and requesting that it be cured, is given by the Company to the Executive; or (D) any violation or breach of the provisions of Section 6 of this Agreement.
4.4    Termination without Cause.  The Company may terminate the Executive’s employment without Cause at any time.  
4.5    Termination for Good Reason.  With thirty (30) days’ prior written notice to the Company, Executive may terminate his employment and this Agreement for Good Reason.  For purposes of this Agreement, “Good Reason” means:  (A) a material change to or diminution of the Executive’s job duties; and (B) a material breach of this Agreement by the Company that is not cured within thirty (30) days’ written notice of the same to the Company.  The written notice of termination for Good Reason must specify in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated, if applicable.    
4.6    Termination without Good Reason.  With thirty (30) days’ prior written notice to the Company, Executive may terminate his employment and this Agreement without Good Reason.  
Any resignation pursuant to the terms of this Section shall not constitute a breach of this Agreement by either party.

5.    Rights and Obligations of the Company and the Executive Upon Termination, or Removal.  Upon the termination of his employment for whatever reason, Executive shall be entitled to all salary and other benefits earned and accrued through his termination date, including any Preceding Bonus that is accrued but remains unpaid.  In addition, and notwithstanding the other provisions of this Agreement, but subject to Section 8.9 and to the extent permissible by Section 409A, upon the occurrence of an event described in Section 4, the parties shall have the following rights and obligations:  
 
5.1   Death or Disability.  If the Executive’s employment is terminated by reason of the Executive’s death or Disability:  

Exhibit 10.32

(A) the Company shall pay the Executive (or his estate in the event of his death), a Pro Rata Annual Bonus, which, subject to Section 8.9, shall be paid within 60 days following the date of death or Disability; and

(B) Executive (or his estate in the event of his death) shall be entitled to accelerated vesting of any outstanding LTIP Awards held by the Executive on the date of death/Disability, which, subject to Section 8.9 and to the extent permissible by Section 409A, shall be paid (if applicable) within 60 days following the date of death/Disability, and shall be entitled to exercise any stock options (if applicable) before the earlier of the stock option’s expiration date and one year following the date of death/Disability.  

In the event of Executive’s Disability, his eligibility for continued enrollment in the Company’s health insurance plan shall be determined in accordance with the terms of the Company’s long-term disability policy then in effect.
5.2    Termination without Cause or for Good Reason.  If the Executive’s employment is terminated by the Company without Cause or by the Executive with Good Reason, the Company shall pay (unless otherwise noted, in the normal course) to the Executive or provide the following amounts or benefits:
(i)     six months Base Salary (as in effect as of the date of such termination or resignation), payable in accordance with the Company’s payroll practice;

(ii)      a Pro Rata Annual Bonus; 
(iii)     Executive shall be entitled to accelerate vesting of any outstanding LTIP Awards held by the Executive as of the date of his termination, with any options (if applicable) to be exercised before the earlier of the option expiration date and one year following the employment termination date; and
(iv)     continued coverage in under the Company’s health insurance plan for a  six month period following his termination date with the Company paying its share of the cost of the premiums for such period.  If continued coverage under the Company’s plan would create a plan discrimination issue or is otherwise not permitted, Company will pay to the Executive the cost for the Executive to obtain comparable health insurance coverage for the applicable period less the amount of the employee share that the Executive would otherwise have had to pay under the Company’s health insurance plan (in effect at the time of termination) for such applicable period, which amount will be paid in a lump sum if permissible under Section 409A.
All payments to be provided to the Executive under this Section 5 shall be subject to the Executive’s compliance with the restrictions in Section 6 and execution, within sixty (60) days of the Executive’s termination, of a general release and waiver of claims against the Company, its officers, directors, employees and agents, in a form acceptable to the Company, from any and all liability arising from the Executive’s employment relationship with the Company (which release will include an agreement between both parties not to disparage the other) that is not revoked.

6.    Confidentiality and Covenant against Competition.

6.1    Non-Disclosure.  The Executive shall forever hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company or any of its affiliated companies, and their respective businesses, which shall have been obtained by the Executive during the Executive’s employment by the Company or any of its affiliated companies and 

Exhibit 10.32

which shall not be public knowledge (other than as a result of a breach of this Section 6.1 by the Executive).  The Executive shall not, without the prior written consent of the Company or except as required by law or in a judicial or administrative proceeding with subpoena powers, communicate or divulge any such information, knowledge or data to anyone other than the Company and those designated by it.  The Executive understands that under the Defend Trade Secrets Act of 2016 (the “Act”), an individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (a) is made (i) in confidence to a Federal, State or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. The Executive further understand that under the Act, an individual who files a lawsuit for retaliation for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (a) files any document containing the trade secret under seal; and (b) does not disclose the trade secret, except pursuant to court order
6.2    Non-Competition.  The Executive will not, during the period of the Executive’s employment with the Company, and for a period of  six months thereafter, directly or indirectly, (a) engage in or contribute Employee’s knowledge and abilities to or (b) be financially interested in, any entity materially engaged in any portion of the business of the Company.  For purposes of this section, the Executive may not engage in, contribute to, or be financially interested in a competing business as a principal, partner, director, officer, stockholder (except as permitted below), agent, employee, consultant or otherwise.  Nothing contained herein shall prevent the Executive from owning beneficially or of record not more than five percent (5%) of the outstanding equity securities of any entity whose equity securities are registered under the Securities Act of 1933, as amended, or are listed for trading on any recognizable United States or foreign stock exchange or market.    
6.3    Non-Solicitation of Employees.  The Executive will not, during the period of the Executive’s employment with the Company, and for a period of one years after the termination of the Executive’s employment with the Company for any reason, directly or indirectly, recruit, solicit or otherwise induce or attempt to induce any employee of the Company to leave the employment of the Company, nor hire any such employee at any enterprise with which the Executive is then affiliated.
6.4    Non-Solicitation of Customers.  The Executive will not, during the period of the Executive’s employment with the Company, and for a period of one year after the termination of the Executive’s employment with the Company for any reason, directly or indirectly, recruit, solicit or otherwise induce or attempt to induce any business of the type performed by the Company from any current or prospective customer, or to persuade any of the Company’s customers to cease doing business or reduce the amount of business that such customer has customarily done with the Company.
6.4    Enforceability of Provisions.  If any restriction set forth in this Section 6 is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable, it being understood and agreed that by the execution of this Agreement, the parties hereto regard the restrictions herein as reasonable and compatible with their respective rights.
6.5    Remedy for Breach.  The Executive hereby acknowledges that the provisions of this Section 6 are reasonable and necessary for the protection of the Company and its respective subsidiaries and affiliates.  In addition, the Executive further acknowledges that the Company and its respective subsidiaries and affiliates will be irrevocably damaged if such covenants are not specifically enforced.  

Exhibit 10.32

Accordingly, the Executive agrees that, in addition to any other relief to which the Company may be entitled, the Company will be entitled to seek and obtain injunctive relief (without the requirement of any bond) from a court of competent jurisdiction for the purposes of restraining the Executive from an actual or threatened breach of such covenants.  In addition, and without limiting the Company’s other remedies, in the event of any breach by the Executive of such covenants, the Company will have no obligation to pay any of the amounts that remain payable by the Company in Section 5 of this Agreement. 

7.    Executive’s Representations.    The Executive represents that he is not precluded from performing this employment by reason of a pre-existing contractual restriction or physical or mental disability.  Upon any breach or inaccuracy of the foregoing, the terms and benefits of this Agreement shall be null and void.  The Executive shall indemnify and hold harmless the Company from and against any and all claims, liabilities, damages and reasonable costs of defense and investigation arising out of any breach or inaccuracy in any of the foregoing representations.  

8.    Other Provisions.

8.1    Withholdings.  The Company may withhold from any amounts or benefits payable under this Agreement such Federal, state or local taxes required to be withheld pursuant to any applicable law or regulation and may take such other deductions only as permitted or required pursuant to law, rule or regulation.

8.2    Notices.  Any notice or other communication required or which may be given hereunder shall be in writing and shall be delivered personally, telecopied, or sent by certified, registered or express mail, postage prepaid, to the parties at the following addresses or at such other addresses as shall be specified by the parties by like notice, and shall be deemed given when so delivered personally, telecopied or if mailed, two days after the date of mailing, as follows:
            
(a)    if to the Company, to it at:
        
IEC Electronics Corp.
105 Norton Street
Newark, New York 14513 
Attention:  Corporate Secretary

(b)    if to the Executive, to him at:

Thomas L. Barbato
784 Hamlin Center Rd
Hamlin, NY  14464 
8.3    Entire Agreement.  This Agreement, together with the MIP, contains the entire understanding of the Company and the Executive with respect to the subject matter hereof.   
8.4    Waivers and Amendments.  This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives. No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder, nor any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.  

Exhibit 10.32

8.5    Governing Law; Jurisdiction.  This Agreement shall be governed by and construed and enforced in accordance with and subject to, the laws of the State of New York applicable to agreements made and to be performed entirely within such state.  The courts of New York and the United States District Courts serving the County of Monroe, New York shall have jurisdiction over the parties with respect to any dispute or controversy between them arising under or in connection with this Agreement.
8.6    Assignment.  This Agreement shall inure to the benefit of and shall be binding upon the Company and its successors.  This Agreement is personal to the Executive and shall not be assignable by Executive otherwise than by will or the laws of descent and distribution.  The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.  
8.7    Headings.  The headings in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.
8.8    Severability.  If any term, provision, covenant or restriction of this Agreement, or any part thereof, is held by a court of competent jurisdiction of any foreign, federal, state, county or local government or any other governmental, regulatory or administrative agency or authority to be invalid, void, unenforceable or against public policy for any reason, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

8.9    Section 409A.  The compensation and benefits under this Agreement are intended to comply with or be exempt from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations promulgated and other official guidance issued thereunder (collectively, “Section 409A”), and this Agreement will be interpreted in a manner consistent with that intent.  For purposes of Sections 4, 5 and 6 of this Agreement, “removal,” “termination of the Executive’s employment” and words of similar import mean, to the extent necessary to comply with Section 409A, the date that the Executive first incurs a “separation from service” within the meaning of Section 409A.  Each payment under this Agreement shall be designated as a “separate payment” for purposes of Section 409A.  To the extent any reimbursement provided under this Agreement is includable in the Executive’s income, such reimbursements shall be paid to the Executive not later than December 31st of the year following the year in which the Executive incurs the expense and the amount of reimbursable expenses provided in one year shall not increase or decrease the amount of reimbursable expenses to be provided in a subsequent year.  To the extent that any payment or acceleration of payment under this Agreement would be considered an impermissible acceleration of payment that would result in a violation of Section 409A, the Company shall delay making such period until the earliest date on which such payment may be made without violating Section 409A.  Notwithstanding anything in this Agreement to the contrary, if at the time of the Executive’s separation from service with the Company, the Executive is a “specified employee” for purposes of Section 409A, and any payment payable under this Agreement as a result of such separation from service is required to be delayed by six months pursuant to Section 409A, then the Company will make such payment on the date that is six months following the Executive’s separation from service with the Company.  The amount of such payment will equal the sum of the payments that would have been paid to the Executive during the six-month period immediately following the Executive’s separation from service had the payment commenced as of such date.

Exhibit 10.32

IN WITNESS WHEREOF, the parties have executed this Employment Agreement on 
September 4, 2018.
IEC ELECTRONICS CORP.
By:   /s/ Jeffrey T. Schlarbaum    
     Jeffrey T. Schlarbaum
Chief Executive Officer

Thomas L. Barbato

By:   /s/Thomas L. Barbato    
Thomas L. Barbato

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