Document:

Amended and Restated Advisory Agreement

 EXHIBIT 10.4 
  
 AMENDED AND RESTATED ADVISORY AGREEMENT 
  
 This Amended and Restated Advisory Agreement (this “Agreement”) is made and entered into as of September
22, 2003 by and between Broder Bros., Co., a Michigan corporation (the “Company”), and Bain Capital, LLC, a Delaware limited liability company (“Bain”). 
  
 WHEREAS, the Company and Bain Capital, Inc. (“Bain Capital, Inc.”) are parties to that certain Advisory
Agreement, dated May 3, 2000 (the “Prior Agreement”), whereby the Company retained Bain Capital, Inc. and Bain Capital, Inc. agreed to perform certain services for the Company and its subsidiaries; 
  
 WHEREAS, Bain Capital, Inc. assigned its rights and obligations under the
Prior Agreement to Bain; 
  
 WHEREAS, the Company, the
stockholders and optionholders of Alpha Shirt Holdings, Inc. (“Alpha”) and FNL Management Corp. are parties to that certain Stock Purchase Agreement, dated July 12, 2003, as amended (the “Stock Purchase Agreement”),
whereby the Company is purchasing all of the issued and outstanding capital stock, options and warrants of Alpha (the “Alpha Acquisition”); and 
  

WHEREAS, in connection with the Alpha Acquisition, the Company and Bain now wish to amend and restate the Prior Agreement to provide the parties the
rights created pursuant to this Agreement in lieu of rights granted under the Prior Agreement. 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, the parties agree as follows: 
  
 1. Term. This Agreement shall be in effect for a term commencing on the date of the Prior Agreement and ending on September
        , 2013 (the “Term”), and shall be automatically extended thereafter on a year to year basis unless the Company or Bain provides written notice of its desire to terminate this
Agreement to the other party 90 days prior to the expiration of the Term or any extension thereof. 
  
 2. Services. Bain shall perform or cause to be performed such services for the Company and its subsidiaries as mutually agreed by Bain and the
Company’s board of directors, which may include, without limitation, the following: 
  
 (a) general executive and management services; 
  

(b) identification, support, negotiation and analysis of acquisitions and dispositions by the Company or its subsidiaries; 

 

 (c) support, negotiation and analysis of financing alternatives, including, without
limitation, in connection with acquisitions, capital expenditures and refinancing of existing indebtedness; 
  
 (d) finance functions, including assistance in the preparation of financial projections, and monitoring of compliance with financing
agreements; 
  
 (e) marketing functions,
including monitoring of marketing plans and strategies; 
  
 (f) human resource functions, including searching and hiring of executives; and 
  
 (g) other services for the Company and its subsidiaries upon which the Company’s board of directors and Bain agree. 
  
 3. Advisory Services Fees and Expenses. 
  
 (a) Commencing from the date of this Agreement and
continuing through the expiration of the Term, the Company shall pay to Bain or its designees an advisory services fee (each an “Advisory Services Fee”) in an amount to be determined annually by the Company’s board of directors
not to exceed (i) $1,500,000 for fiscal year 2003 (i.e., the fiscal year ending December 27, 2003), pro rated for the number of days from the date of this agreement through such fiscal year-end, (ii) $1,500,000 per fiscal year, in the aggregate, for
fiscal years 2004 and 2005, and (iii) $3,000,000 per year, in the aggregate, for each fiscal year thereafter. Notwithstanding the foregoing, (A) Bain shall not be entitled to a payment of an Advisory Services Fee for fiscal year 2004 or after to the
extent that the Company’s Consolidated EBITDA, as defined herein, for the fiscal year to which the fee relates would be less than $52,000,000 (as determined after payment of the Advisory Services Fee (or portion thereof that would not otherwise
cause Consolidated EBITDA to be less than $52,000,000)), and (B) if the fee payable for fiscal year 2004 is reduced by application of clause (A) above, the pro-rated fee payable for fiscal year 2003 shall be reduced in the same proportion. Fees
payable under this Section 3(a) shall be paid by the Company as soon as practicable following the board’s determination that such a fee is payable; provided, however, that the fee payable for fiscal year 2003 shall be paid at the time the fee
for fiscal year 2004 is paid. 
  
 (b) The Company
will reimburse Bain for such reasonable travel expenses and other reasonable out-of-pocket fees and expenses (including the fees and expenses of accountants, attorneys and other advisors retained by Bain) as may be incurred by Bain and its partners,
members, employees or agents in connection with the rendering of services pursuant to this Agreement. Such expenses will be reimbursed by wire transfer of immediately available funds promptly upon the request of Bain (but in any case no later than
five business days following such request) and will be in addition to any other fees or amounts payable to Bain pursuant to this Agreement. 
  

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 4. Transaction Fees. 
  
 (a) The Company hereby agrees to pay to Bain or its designees upon the closing of the Alpha Acquisition a
fee for services rendered in connection with the structuring of the financing for the transactions contemplated by the Stock Purchase Agreement and certain other matters. Such fee shall be payable by wire transfer of immediately available funds in
an amount equal to $4,500,000 to Bain or its designees. In addition, the Company will reimburse Bain or its designees, by wire transfer of immediately available funds upon the closing of the Alpha Acquisition, its reasonable travel expenses and
other reasonable out-of-pocket fees and expenses (including the fees and expenses of accountants, attorneys and other advisors retained by Bain) incurred in connection with the foregoing. 
  
 (b) In addition, commencing from the date of this Agreement
and continuing through the expiration of the Term, the Company will pay to Bain or its designee a transaction fee in connection with the consummation of each transaction resulting in a Change in Control (as defined herein), acquisition, divestiture
or financing (whether debt or equity financing) by or involving the Company or its subsidiaries in an amount equal to 1.0% of the aggregate value of each such transaction (in each case, whether such transaction is by way of merger, purchase or sale
of stock, purchase or sale or other disposition of assets, recapitalization, reorganization, consolidation, tender offer, public or private offering or otherwise, and whether consummated directly by the Company or its subsidiaries or indirectly by
their respective stockholders). 
  
 5. Personnel. Bain
shall provide and devote to the performance of this Agreement such partners, employees and agents of Bain as Bain shall deem appropriate to the furnishing of the services required. The fees and other compensation specified in this Agreement will be
payable by the Company regardless of the extent of services requested by the Company pursuant to this Agreement, and regardless of whether or not the Company requests Bain to provide any such services. 
  
 6. Liability. Neither Bain nor any of its affiliates, partners,
employees or agents shall be liable to the Company or its subsidiaries or affiliates for any loss, liability, damage or expense arising out of or in connection with the performance of services contemplated by this Agreement, unless such loss,
liability, damage or expense shall be proven to result directly from gross negligence, willful misconduct or bad faith on the part of Bain, its affiliates, partners, employees or agents acting within the scope of their employment or authority. Bain
makes no representations or warranties, express or implied, in respect of the services to be provided by Bain or any of its affiliates, partners, employees or agents. Except as Bain may otherwise agree in writing after the date hereof: (i) Bain
shall have the right to, and shall have no duty (contractual or otherwise) not to, directly or indirectly: (A) engage in the same or similar business activities or lines of business as the Company or its subsidiaries and (B) do business with any
client or customer of the Company or its subsidiaries; (ii) neither Bain nor any officer, director, employee, partner, affiliate or associated entity thereof shall be liable to the Company or its subsidiaries or affiliates for breach of any duty
(contractual or otherwise) by reason of any such activities or of such person’s participation therein; and (iii) in the event that Bain acquires 

  

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knowledge of a potential transaction or matter that may be a corporate opportunity for both the Company or any of its subsidiaries, on the one hand, and
Bain, on the other hand, or any other person, Bain shall have no duty (contractual or otherwise) to communicate or present such corporate opportunity to the Company or its subsidiaries and, notwithstanding any provision of this Agreement to the
contrary, shall not be liable to the Company, its subsidiaries or any of their affiliates for breach of any duty (contractual or otherwise) by reasons of the fact that Bain directly or indirectly pursues or acquires such opportunity for itself,
directs such opportunity to another person, or does not present such opportunity to the Company. In no event will any of the parties hereto be liable to any other party hereto for any indirect, special, incidental or consequential damages, including
lost profits or savings, whether or not such damages are foreseeable, or in respect of any liabilities relating to any third party claims (whether based in contract, tort or otherwise) except as set forth in Section 7 below. 
  
 7. Indemnity. The Company and its subsidiaries shall defend, indemnify
and hold harmless each of Bain, its affiliates, partners, employees and agents from and against any and all loss, liability, damage or expenses arising from any claim by any person with respect to, or in any way related to, the performance of
services contemplated by this Agreement (including attorneys’ fees) (collectively, “Claims”) resulting from any act or omission of Bain, its affiliates, partners, employees or agents, other than for Claims which shall be proven
to be the direct result of gross negligence, bad faith or willful misconduct by Bain, its affiliates, partners, employees or agents. The Company and its subsidiaries shall defend at its own cost and expense any and all suits or actions (just or
unjust) which may be brought against the Company or its subsidiaries and Bain, its officers, directors, affiliates, partners, employees or agents or in which Bain, its affiliates, partners, employees or agents may be impleaded with others upon any
Claims, or upon any matter, directly or indirectly, related to or arising out of this Agreement or the performance hereof by Bain, its affiliates, partners, employees or agents, except that if such damage shall be proven to be the direct result of
gross negligence, bad faith or willful misconduct by Bain, its affiliates, partners, employees or agents, then Bain shall reimburse the Company and its subsidiaries and parent for the costs of defense and other costs incurred by the Company and its
subsidiaries. 
  
 8. Notices. All notices hereunder shall
be in writing and shall be delivered personally or mailed by United States mail, postage prepaid, addressed to the parties as follows: 
  
 To the Company: 
  
 Broder Bros., Co. 
 45555 Port Street

 Plymouth, Michigan 48170 
 Attn: President 
 Facsimile No.: (734) 454-0296 
  
 To Bain: 
  
 Bain Capital, Inc. 
 745 Fifth Avenue

 New York, New York 10151 
 Attention: Edward Conard 
 Yoo Jin Kim 
 Facsimile No.: (212) 421-2225 
  

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 9. Certain Definitions. For purposes of this Agreement, 
  
 (a) “Change in Control” means (i) any sale
or transfer by the Company or its subsidiaries of all or substantially all of their assets on a consolidated basis, (ii) any consolidation, merger or reorganization of the Company with or into any other entity or entities as a result of which the
holders of the Company’s outstanding capital stock possessing the voting power (under ordinary circumstances) to elect a majority of the board of directors of the Company immediately prior to such consolidation, merger or reorganization cease
to own, directly or indirectly, the outstanding capital stock of the surviving corporation possessing the voting power (under ordinary circumstances) to elect a majority of the surviving corporation’s board of directors or (iii) issuance by the
Company or sale or transfer to any third party of shares of the Company’s capital stock by the holders thereof as a result of which the holders of the Company’s outstanding capital stock possessing the voting power (under ordinary
circumstances) to elect a majority of the board of directors of the Company immediately prior to such sale or transfer cease to own, directly or indirectly, the outstanding capital stock of the Company possessing the voting power (under ordinary
circumstances) to elect a majority of the board of directors of the Company; and 
  
 (b) “Consolidated EBITDA” shall have the meaning ascribed to such term in, and shall be calculated in accordance with,
the Credit Agreement; provided, however, that Consolidated EBITDA calculated in accordance with the Credit Agreement shall be adjusted (without duplication of any adjustments already taken in determining Consolidated EBITDA) to (i) with respect to
fiscal year 2004, reflect up to $8,500,000 of actual and pro forma cost savings related to the Acquisition (as defined in the Credit Agreement) and the acquisition of TSM, Inc. (which, in the case of pro forma savings, shall exclude any savings that
the Company’s board of directors’ determines are not reasonably achievable by the end of the subsequent fiscal year), and (ii) deduct any Advisory Service Fee paid pursuant to Section 3(a) of this Agreement with respect to the fiscal year
for which Consolidated EBITDA is being determined. If the Credit Agreement expires or is terminated while this Agreement remains in effect, unless and until the Company and Bain amend this Agreement to adopt an alternative definition of Consolidated
EBITDA, (x) Consolidated EBITDA shall be calculated in accordance with the terms of the Credit Agreement and (y) any determination under the Credit Agreement necessary to calculate Consolidated EBITDA that is subject to the acceptance, approval or
discretion of the Administrative Agent thereunder shall be subject to the mutual agreement of the Company (as determined by the Company’s board of directors) and Bain taking into account the prior resolution of similar types of determinations
by the Administrative Agent. 
  

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 (c) “Credit Agreement” means that certain Credit Agreement, dated as of
September 19, 2003, among the Company, the Guarantors party thereto, the Lenders party thereto and The CIT Group/Commercial Services, Inc., as Collateral Agent, UBS Securities LLC, as Arranger, Documentation Agent and Syndication Agent, UBS AG,
Stamford Branch, as Issuing Bank and Administrative Agent, and UBS AG, Cayman Islands Branch, as Swingline Lender. 
  
 10. Assignment. Neither party may assign any obligations hereunder to any other party without the prior written consent of the other party (which
consent shall not be unreasonably withheld); provided that Bain may, without consent of the Company, assign its rights and obligations under this Agreement to any of its affiliates (but only if such affiliate is a person or entity (excluding any
Bain portfolio companies) controlled by Bain, or in the case of an affiliate which is a partnership, Bain is the ultimate general partner of such partnership). The assignor shall remain liable for the performance of any assignee. 
  
 11. Successors. This Agreement and all the obligations and benefits
hereunder shall inure to the successors and assigns of the parties. 
  
 12. Counterparts. This Agreement may be executed and delivered by each party hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original and all of which taken together shall constitute
but one and the same agreement. 
  
 13. Entire Agreement;
Modification; Governing Law. The terms and conditions hereof constitute the entire agreement between the parties hereto with respect to the subject matter of this Agreement and supersede all previous communications, either oral or written,
representations or warranties of any kind whatsoever, except as expressly set forth herein. No modifications of this Agreement nor waiver of the terms or conditions thereof shall be binding upon either party unless approved in writing by an
authorized representative of such party. All issues concerning this Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of New York or any other jurisdiction) that would cause the application of the law of any jurisdiction other than the State of New York. 
  

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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

  

	BRODER BROS., CO.
		
	By:	 	 /s/ Vincent Tyra

	 	

	 Its:
	 	 President

	 	

  

	BAIN CAPITAL, LLC
		
	By:	 	 /s/ Edward Conrad

	 	

	 Its:
	 	 
	 	

  

 7Broder Bros., Co. 2000 Stock Option and Purchase Plan

 EXHIBIT 10.5 
  
 BRODER BROS., CO. 
  
 2000 STOCK PURCHASE AND OPTION PLAN 
  
 1. Purpose of Plan. This 2000 Stock Purchase and Option Plan (the “Plan”) of Broder Bros., Co., a Michigan corporation (the
“Company”) is designed to provide incentives to such present and future employees, directors, consultants or advisers of the Company or its subsidiaries (“Participants”), as may be selected in the sole discretion of
the Committee (as defined below), through the grant of Options by the Company to Participants or through the sale of Common Shares to Participants. Only those Participants who are employees of the Company and its Subsidiaries shall be eligible to
receive incentive stock options. This Plan is a compensatory benefit plan within the meaning of Rule 701 of the Securities Act of 1933, as amended, and, unless and until the Company’s common stock is publicly traded, the issuance of stock
purchase options for Common Shares (as defined below) pursuant to the Plan, the issuance of Common Shares pursuant to such stock purchase options and the issuance of any other Common Shares pursuant to this Plan are, to the extent permitted by
applicable federal securities laws, intended to qualify for the exemption from registration under Rule 701 of the Securities Act of 1933, as amended. 
  
 2. Definitions. Certain terms used in this Plan have the meanings set forth below: 
  
 “Board” means the Company’s board of directors.

  
 “Code” means the Internal Revenue Code of
1986, as it may be amended from time to time. 
  
 “Class A
Common” means the Company’s Class A Common Shares, par value $.01 per share. 
  
 “Class L Common” means the Company’s Class L Common Shares, par value $.01 per share. 
  
 “Committee” shall mean the committee of the Board which may be designated by the Board to administer the Plan. The Committee shall be
composed of two or more directors as appointed from time to time to serve by the Board. In the absence of the appointment of any such Committee, any action permitted or required to be taken hereunder shall be deemed to refer to the Board.

  
 “Common Shares” means the Class A Common and
the Class L Common. 
  
 “Fair Market Value” of a
Common Share means the market value as determined in good faith by the Committee or, in the absence of the Committee, by the Board. 

 “Option” means any option enabling the holder thereof to purchase any class of Common
Shares from the Company granted by the Committee pursuant to the provisions of this Plan. Options to be granted under this Plan may be incentive stock options within the meaning of Section 422 of the Code (“Incentive Stock Options”)
or in such other form, consistent with this Plan as the Committee may determine. 
  
 “Subsidiary” means any corporation of which shares of stock having a majority of the general voting power in electing the board of directors are, at the time as of which any determination is being
made, owned by the Company either directly or through its Subsidiaries. 
  
 3. Grant of Options. The Committee shall have the right and power to grant to any Participant such Options at any time prior to the termination of this Plan in such quantity, at such price, on such terms and subject to such
conditions that are consistent with this Plan and established by the Committee. Options granted under this Plan shall be subject to such terms and conditions and evidenced by agreements as shall be determined from time to time by the Committee.

  
 4. Sale of Common Shares. The Committee shall
have the power and authority to sell to any Participant any class or classes of Common Shares at any time prior to the termination of this Plan in such quantity, at such price, on such terms and subject to such conditions that are consistent with
this Plan and established by the Committee. Common Shares sold under this Plan shall be subject to such terms and evidenced by agreements as shall be determined from time to time by the Committee. 
  
 5. Administration of the Plan. The Committee shall have
the power and authority to prescribe, amend and rescind rules and procedures governing the administration of this Plan, including, but not limited to the full power and authority (i) to interpret the terms of this Plan, the terms of any Options
granted under this Plan, and the rules and procedures established by the Committee governing any such Options and (ii) to determine the rights of any person under this Plan or the meaning of requirements imposed by the terms of this Plan or any rule
or procedure established by the Committee. Each action of the Committee which shall be binding on all persons. 
  
 6. Limitation on the Aggregate Number of Shares. The number of Common Shares issued under this Plan (including the number of Common Shares
with respect to which Options may be granted under this Plan (and which may be issued upon the exercise or payment thereof)) shall not exceed, in the aggregate, 50,000 Class L Common Shares and 1,500,000 Class A Common Shares (as such numbers are
equitably adjusted pursuant to paragraph 10 hereof). If any Options expire unexercised or unpaid or are canceled, terminated or forfeited in any manner without the issuance of Common Shares or payment thereunder, the shares with respect to which
such Options were granted shall again be available under this Plan. Similarly, if any Common Shares issued hereunder upon exercise of Options are repurchased hereunder, such shares shall again be available under this Plan for reissuance as Options.
Common Shares to be issued upon exercise of the Options or Common Shares to be sold directly hereunder may be either authorized and unissued shares, treasury shares, or a combination thereof, as the Committee shall determine. 

 7. Incentive Stock Options. All Incentive Stock Options (i) shall have an exercise
price per Common Share of not less than 100% of the fair market value of such share on the date of grant, (ii) shall not be exercisable more than ten years after the date of grant, (iii) shall not be transferable other than by will or under the laws
of descent and distribution and, during the lifetime of the Participant to whom such Incentive Stock Options were granted, may be exercised only by such Participant (or his guardian or legal representative), and (iv) shall be exercisable only during
the Participant’s employment by the Company or a Subsidiary, provided, however, that the
Committee may, in its discretion, provide at the time that an Incentive Stock Option is granted that such Incentive Stock Option may be exercised for a period ending no later than either (x) the termination of this Plan in the event of the
Participant’s death while an employee of the Company or a Subsidiary, or (y) the date which is three months after termination of the Participant’s employment for any other reason. The Committee’s discretion to extend the period during
which an Incentive Stock Option is exercisable shall only apply if and to the extent that (i) the Participant was entitled to exercise such option on the date of termination, and (ii) such option would not have, expired had the Participant continued
to be employed by the Company or a Subsidiary. To the extent that the aggregate fair market value of stock with respect to which Incentive Stock Options are exercisable for the first time by any individual during any calendar year exceeds $100,000,
such options shall be treated as options which are not Incentive Stock Options. 
  
 8. Listing, Registration and Compliance with laws and Regulations. Each Option shall be subject to the requirement that if at any time the Committee shall determine, in its discretion, that the listing,
registration or qualification of the shares subject to the Option upon any securities exchange or under any state or federal securities or other law or regulation, or the consent or approval of any governmental regulatory body, is necessary or
desirable as a condition to or in connection with the granting of such Option or the issue or purchase of shares thereunder, no such Option may be exercised or paid in Common Shares in whole or in part unless such listing, registration, qualification, consent or approval (a “Required Listing”) shall have been effected or obtained, and the
holder of the Option will supply the Company with such certificates, representations and information as the Company shall request which are reasonably necessary or desirable in order for the Company to obtain such Required Listing, and shall
otherwise cooperate with the Company in obtaining such Required Listing. In the case of officers and other persons subject to Section 16(b) of the Securities Exchange Act of 1934, as amended, the Committee may at any time impose any limitations upon
the exercise of an Option which, in the Committee’s discretion, are necessary or desirable in order to comply with Section 16(b) and the rules and regulations thereunder. If the Company, as part of an offering of securities or otherwise, finds
it desirable because of federal or state regulatory requirements to reduce the period during which any Options may be exercised, the Committee may, in its discretion and without the consent of the holders of any such Options, so reduce such period
on not less than 15 days’ written notice to the holders thereof. 
  
 9. Cash Payments Upon Exercise. Options which are not Incentive Stock Options may, in the Committee’s discretion, provide that the holder thereof, as soon as practicable after the exercise of the Options will receive, in
lieu of any issuance of Common Shares, a cash payment in such amount as the Committee may determine, but not more than the excess of the Fair Market Value of a Common Share (on the date the holder recognizes taxable income) over the Option’s
exercise price multiplied by the number of shares as to which the Option is exercised. 

 10. Adjustment for Change in Common Shares. In the event of a reorganization,
recapitalization, stock split, stock dividend, combination of shares, merger, consolidation or other change in the Common Shares, the Committee shall make appropriate changes in the number and type of shares authorized by this Plan, the number and
type of shares covered by outstanding Options and the prices specified therein. 
  
 11. Taxes. The Company shall be entitled, if necessary or desirable, to withhold (or secure payment from the Plan participant in lieu of withholding) the amount of any withholding or other tax due from
the Company with respect to any amount payable and/or shares issuable under this Plan, and the Company may defer such payment or issuance unless indemnified to its satisfaction. 
  
 12. Termination and Amendment. The Committee at any time may suspend or terminate this Plan and make such
additions or amendments as it deems advisable under this Plan, except that they may not, without further approval by the Company’s stockholders, (a) increase the maximum number of shares as to which Options may be granted under this Plan,
except pursuant to paragraph 10 above or (b) extend the term of this Plan; provided that, subject to paragraph 8 hereof, the Committee may not change any of the terms of a written agreement with respect to an Option between the Company and the
holder of such Option without the approval of the holder of such Option. No Options shall be granted or Common Shares issued hereunder after                 
    , 2010; provided that, if the term of this Plan is otherwise extended, no Incentive Stock Options shall be Granted hereunder after
                     , 2010. 
  
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