Document:

Exhibit

INTEGRATION INCENTIVE PLAN
PARTICIPATION AGREEMENT

This Participation Agreement (this “Agreement”) is made as of this [___] day of [_________], 2018 between BlueLinx Corporation, a Delaware corporation (the “Company”) and [_________] (the “Participant”). Capitalized terms used and not defined herein shall have the meaning given to such terms in the Plan (as defined below).
WHEREAS, the Company has adopted and maintains the BlueLinx Integration Incentive Plan (the “Plan”) to assist the Company in retaining, motivating and rewarding eligible individuals who are participating in the Company’s efforts to integrate its business with the business of Cedar Creek Holdings, Inc.; and
WHEREAS, the Plan provides for the grant to Participants of contingent incentive payments pursuant to the Plan as provided therein.
NOW, THEREFORE, in consideration of the promises and the mutual covenants hereinafter set forth herein, the parties hereto hereby agree as follows:
1.Participation. The Participant is hereby eligible to receive a Base Integration Bonus and a Supplemental Integration Bonus in accordance with and subject to the terms and conditions of the Plan and this Agreement.
(a)    Upon the realization of at least $50 million in Net Synergies (the “Initial Integration Performance Target”), the Participant’s Base Integration Bonus shall be equal to the product of (A) the Participant’s Base Salary multiplied by (B) [____%]. The Participant’s Base Integration Bonus will be reduced to the extent the Cost To Achieve Synergies exceeds $[__] million in an amount equal to [___] for every [___] million in excess of [___] million of Cost To Achieve Synergies.
(b)    The Supplemental Integration Bonus shall be in an amount equal to [___%] of the Participant's Base Salary for every [__] million of Net Synergies above $50 million up to [__] million of Net Synergies. The Participant’s Supplemental Integration Bonus will be reduced to the extent the Cost To Achieve Synergies exceeds [__] million in an amount equal to [__] for every [_] million in excess of [___] million of Cost To Achieve Synergies. 
(c)    No payment will be made on account of the Base Integration Bonus or the Supplemental Integration Bonus until the Minimum Adjusted LTM EBITDA is at least [___] million.  In the event the Minimum Adjusted LTM EBITDA has not exceeded [___] million on or before October 16, 2019, then no Bonus shall be paid under the Plan.
(d)    No Bonus shall be paid to the Participant if the Participant is not employed on the applicable payment date for such Bonus.  
2.Payment of Bonus.    Any Bonus earned under this Participation Agreement and the Plan shall be paid in accordance with Section 4.5 of the Plan.
3.Incorporation of Plan. All terms, conditions and restrictions of the Plan are incorporated herein and made part hereof as if stated herein. If there is any conflict between the terms and conditions of the Plan and this Agreement, the terms and conditions of the Plan, as interpreted by the Committee, shall govern. The Participant hereby acknowledges receipt of a true copy of the Plan and that the Participant has read the Plan carefully and fully understands its content. The Participant hereby acknowledges that all decisions, determinations and interpretations of the Committee in respect of the Plan and this Agreement shall be final, binding and conclusive on the Company and the Participant.

4.Delays or Omissions. No delay or failure to exercise any right, power or remedy accruing to any party hereto upon any breach or default of any party under the Plan or this Agreement, shall impair any such right, power or remedy of such party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, shall be in writing and shall be effective only to the extent specifically set forth in such writing.
5.Confidentiality of Agreement. The terms of this Agreement are strictly confidential and, other than with respect to information required to be disclosed by applicable law, the Participant agrees not to disclose the existence of this Agreement or the terms of this Agreement to any person at any time; provided the Participant may disclose this Agreement and/or any of its terms to the Participant’s immediate family, financial advisors and attorneys, so long as the Participant instructs every such person to whom the Participant makes such disclosure not to disclose the terms of this Agreement further. The Participant’s failure to comply with this Section 5 may, in the Committee’s sole and absolute discretion, immediately terminate this Agreement and all obligations of the Company contained herein.
6.Entire Agreement. This Agreement and the Plan contain the entire understanding of the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, agreements, promises, representations, warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein and in the Plan. This Agreement, including without limitation, the Plan, supersedes all prior agreements and understandings between the parties hereto with respect to the subject matter hereof and the subject matter set forth in the Plan. Except as may be specifically provided for herein, this Agreement may not be amended in any respect except by a writing signed by both parties hereto.
7.Acknowledgement. The Participant acknowledges and agrees that (i) his or her rights under this Agreement are contractual in nature and nothing contained herein shall create any equity interest in the Company or any of its affiliates and (ii) neither the Company nor any of its officers, directors or affiliates shall owe any fiduciary duty of any kind to the Participant by virtue of the Plan.
8.Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but both of which shall constitute one and the same instrument.
9.Governing Law. This Agreement and the rights and obligations of all Persons claiming hereunder shall be construed and determined in accordance with the laws of the State of Georgia without giving effect to the choice of law principles thereof. 

[SIGNATURES ON FOLLOWING PAGE]

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its duly authorized officer and the Participant has hereunto signed this Agreement on his or her own behalf, thereby representing that he or she has carefully read and understands this Agreement and the Plan as of the day and year first written above.

BlueLinx Corporation

By:      _____________________________

Title:    _____________________________

Participant

By:        _____________________________

Name: (Print)    _____________________________EX-4.1

EXHIBIT 4.1

 

FIRST AMENDMENT TO NOTE

 

THIS FIRST AMENDMENT (THE “FIRST AMENDMENT”) DATED APRIL 17, 2018, SHALL AMEND THE 11%
SUBORDINATED NOTE DUE 2019 (THE “NOTE”), DATED AS OF MARCH 29, 2017, BY CASTLE BRANDS INC. (THE
“COMPANY”) IN FAVOR OF FROST NEVADA INVESTMENTS TRUST (THE “HOLDER”), AS NOTED BELOW.

 

RECITALS

 

WHEREAS, the Company and the Holder (collectively, the “Parties”) are parties to the Note,
which became effective on March 29, 2017; and

 

WHEREAS, the Parties desire to amend the Note to extend the Maturity Date from March 15, 2019
to September 15, 2020.

 

NOW THEREFORE, in consideration of the mutual covenants and promises contained in the Note and
this First Amendment and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties agree as follows:

 

AMENDMENT

 

	 	1.	 	The first sentence of Section 1(a) of the Note is hereby amended and restated
in its entirety as follows:

 

The unpaid principal balance of this Note, and all accrued but unpaid interest
earned hereon, shall be due and payable, without demand or notice, on September 15,
2020 (the “Maturity Date”).

 

2. Governing Law. The validity and interpretation of this First Amendment, and the terms and
conditions set forth herein, shall be governed by and construed in accordance with the laws of the
State of Florida, without regard to any choice of law or conflict of law provision or rule that
would cause the application of the laws of any jurisdiction other than the state of Florida.

 

3. Amendments. Except as expressly amended hereby, the Note shall remain unmodified and in
full force and effect.

 

4. Entire Agreement. This First Amendment and the Note constitute the entire agreement of the
Parties with respect to the subject matter hereof and thereof and supersede all prior
understandings and writings between the Parties relating hereto and thereto.

 

5. Interpretation. Any capitalized terms used in this First Amendment but not otherwise
defined shall have the meaning provided in the Note.

  

6. Counterparts. This First Amendment may be executed manually, electronically in Adobe® PDF
file format, or by facsimile by the Parties, in any number of counterparts, each of which shall be
considered one and the same amendment and shall become effective when a counterpart hereof shall
have been signed by each of the Parties and delivered to the other Party.

 

1

IN WITNESS WHEREOF, the Company and the Holder have duly executed this First Amendment to the
Note as of the 17th day of April, 2018.

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	CASTLE BRANDS INC.
	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Alfred J. Small
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	Alfred J. Small
	 	 	 	 	Title:	 	Senior Vice
President, Chief
Financial Officer,
Treasurer and
Secretary
	 	 	 	 	 	 	 
	Agreed and Accepted:	 	 	 	 
	 	 	 	 	 	 	 
	FROST NEVADA INVESTMENTS TRUST	 	 	 	 
	 	 	 	 	 	 	 
	By:
	 	/s/ Phillip Frost, M.D.
	 	 
	 	 
	 	 

	 	 	 
	 	

	 	

	 	

	Name:	 	Phillip Frost, M.D.	 	 	 	 
	Title:	 	Trustee	 	 	 	 

2

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