Document:

PHILLIPS-VAN HEUSEN CORPORATION

EXHIBIT 10.1

PHILLIPS-VAN HEUSEN CORPORATION

2003 STOCK OPTION PLAN

(As Amended through June 10, 2003)

1.Purpose.  The purposes of the 2003 Stock Option Plan (the "Plan") are to induce certain individuals to remain in the employ, or
to continue to serve as directors of, or consultants or advisors to, Phillips-Van Heusen Corporation (the "Company") and its present and future
subsidiary corporations (each a "Subsidiary"), as defined in Section 424(f) of the Internal Revenue Code of 1986, as amended (the "Code"), to
attract new individuals to enter into such employment or service and to encourage such individuals to secure or increase on reasonable terms
their stock ownership in the Company.  The Board of Directors of the Company (the "Board") believes that the granting of stock options (the
"Options") under the Plan will promote continuity of management and increased incentive and personal interest in the welfare of the Company by
those who are or may become primarily responsible for shaping and carrying out the long range plans of the Company and securing its continued
growth and financial success.  Options granted hereunder are intended to be either (i) "incentive stock options" (which term, when used herein,
shall have the meaning ascribed thereto by the provisions of Section 422(b) of the Code) or (ii) options which are not incentive stock options
("non-qualified stock options") or (iii) a combination thereof, as determined by the Committee (the "Committee") referred to in Section 5 at
the time of the grant thereof.

2.Effective Date of the Plan.  The Plan became effective on May 1, 2003.

3.Stock Subject to Plan.  5,400,000 of the authorized but unissued shares of the common stock, $1.00 par value, of the Company
(the "Common Stock") are hereby reserved for issue upon the exercise of Options granted under the Plan; provided, however, that
the number of shares so reserved may from time to time be reduced to the extent that a corresponding number of issued and outstanding shares of
the Common Stock are purchased by the Company and set aside for issue upon the exercise of Options.  If any Options expire or terminate for any
reason without having been exercised in full, the unpurchased shares subject thereto shall again be available for the purposes of the Plan.

4.Administration.

(a)Except as otherwise provided in Section 4(b), the Plan shall be administered by the Committee.  Subject to the express provisions of
the Plan, the Committee shall have complete authority, in its discretion, to interpret the Plan, to prescribe, amend and rescind rules and
regulations relating to it, to determine the terms and provisions of the respective option agreements or certificates (which need not be
identical), to determine the individuals (each a "Participant") to whom and the times and the prices at which Options shall be granted, the
periods during which each Option shall be exercisable, the number of shares of the Common Stock to be subject to each Option and whether such
Option shall be an incentive stock option or a non-qualified stock option and to make all other determinations necessary or advisable for the
administration of the Plan.  In making such determinations, the Committee may take into account the nature of the services rendered by the
respective individuals, their present and potential contributions to the success of the Company and the Subsidiaries and such other factors as
the Committee in its discretion shall deem relevant.  The Committee's determination on the matters referred to in this Section 4 shall be
conclusive.  Any dispute or disagreement which may arise under or as a result of or with respect to any Option shall be determined by the
Committee, in its sole discretion, and any interpretations by the Committee of the terms of any Option shall be final, binding and
conclusive.

(b)The Chairman of the Board or, if the Chairman is not an executive officer of the Company, the Chief Executive Officer of the Company
or other executive officer of the Company designated by the Committee who is also a director (the Chairman, Chief Executive Officer or other
designated executive officer being referred to as the "Designated Director") may administer the Plan with respect to employees of the Company
or a Subsidiary (i) who are not officers of the Company subject to the provisions of Section 16 of the Securities Exchange Act of 1934, as
amended (the "Exchange Act") and (ii) whose compensation is not, and in the judgment of the Designated Director may not be reasonably
expected to become, subject to the provisions of Section 162(m) of the Code.  The authority of the Designated Director and Options granted by
the Designated Director shall be subject to such terms, conditions, restrictions and limitations as may be imposed by the Board, including, but
not limited to, a limit on the aggregate number of shares of Common Stock subject to Options that may be granted in any one calendar year by
the Designated Director to all such employees of the Company and its Subsidiaries and a maximum number of shares that may be subject to Options
granted under the Plan in any one calendar year to any single employee by the Designated Director.  Unless and until the Board shall take
further action, the maximum number of shares of Common Stock that may be subject to Options granted under the Plan, the Company's 1997 Stock
Option Plan, 2000 Stock Option Plan and any other stock option plan then in effect in any one calendar year by the Designated Director shall be
100,000 in the aggregate and the maximum number of shares of Common Stock that may be subject to Options granted under the Plan, the Company's
1997 Stock Option Plan, 2000 Stock Option Plan and any other stock option plan then in effect in any one calendar year by the Designated
Director to any single employee shall be 5,000 in the aggregate.  Any actions duly taken by the Designated Director with respect to the grant
of Options to such employees shall be deemed to have been taken by the Committee for purposes of the Plan.

5.Committee.  The Committee shall consist of two or more members of the Board.  It is intended that all of the members of the
Committee shall be "non-employee directors" within the meaning of Rule 16b-3(b)(3) promulgated under the Exchange Act, and "outside directors"
within the contemplation of Section 162(m)(4)(C)(i) of the Code.  The Committee shall be appointed annually by the Board, which may at any time
and from time to time remove any members of the Committee, with or without cause, appoint additional members to the Committee and fill
vacancies, however caused, in the Committee.  A majority of the members of the Committee shall constitute a quorum.  All determinations of the
Committee shall be made by a majority of its members present at a meeting duly called and held, except that the Committee may delegate to any
one of its members the authority of the Committee with respect to the grant of Options to any person who shall not be an officer and/or
director of the Company and who is not, and in the judgment of the Committee may not be reasonably expected to become, a "covered employee"
within the meaning of Section 162(m)(3) of the Code.  Any decision or determination of the Committee reduced to writing and signed by all of
the members of the Committee (or by the member(s) of the Committee to whom authority has been delegated) shall be fully as effective as if it
had been made at a meeting duly called and held.

6.Eligibility.  An Option may be granted only to a key employee of the Company or a Subsidiary or to a director of the Company or
a Subsidiary who is not an employee of the Company or a Subsidiary or to an independent consultant or advisor who renders services to the
Company or a Subsidiary.

 

7.Option Prices.

(a)The initial per share option price of any Option shall be the price determined by the Committee, but not less than the fair market
value of a share of the Common Stock on the date of grant; provided, however, that, in the case of a Participant who owns more
than 10% of the total combined voting power of the Common Stock at the time an Option which is an incentive stock option is granted to him or
her, the initial per share option price shall not be less than 110% of the fair market value of a share of the Common Stock on the date of
grant.

(b)For all purposes of the Plan, the fair market value of a share of the Common Stock on any date shall be equal to (i) the closing sale
price of the Common Stock on the New York Stock Exchange on the business day preceding such date or (ii) if there is no sale of the Common
Stock on such Exchange on such business day, the average of the bid and asked prices on such Exchange at the close of the market on such
business day.

8.Option Term.  Participants shall be granted Options for such term as the Committee shall determine, not in excess of 10 years
from the date of the granting thereof; provided, however, that, in the case of a Participant who owns more than 10% of the total
combined voting power of the Common Stock at the time an Option which is an incentive stock option is granted to him or her, the term with
respect to such Option shall not be in excess of five years from the date of the granting thereof.
9.Limitations on Amount of Options Granted.

(a)The aggregate fair market value of the shares of the Common Stock for which any Participant may be granted incentive stock options
which are exercisable for the first time in any calendar year (whether under the terms of the Plan or any other stock option plan of the
Company) shall not exceed $100,000.

(b)No Participant shall, during any fiscal year of the Company, be granted Options under the Plan to purchase more than 1,200,000 shares
of the Common Stock.
10.Exercise of Options.

(a)Except as otherwise determined by the Committee at the time of grant, a Participant may not exercise an Option during the period
commencing on the date of the grant of such Option to him or her and ending on the day immediately preceding the first anniversary of such
date.  Except as otherwise determined by the Committee at the time of grant, a Participant may (i) during the period commencing on the first
anniversary of the date of the grant of an Option to him or her and ending on the day immediately preceding the second anniversary of such
date, exercise such Option with respect to one-quarter of the shares granted thereby, (ii) during the period commencing on the second
anniversary of the date of such grant and ending on the day immediately preceding the third anniversary of the date of such grant, exercise
such Option with respect to one-half of the shares granted thereby, (iii) during the period commencing on the third anniversary of the date of
such grant and ending on the day immediately preceding the fourth anniversary of such date, exercise such Option with respect to three-quarters
of the shares granted thereby and (iv) during the period commencing on the fourth anniversary of the date of such grant and ending at the time
the Option expires pursuant to the terms hereof, exercise such Option with respect to all of the shares granted thereby.

(b)Except as hereinbefore otherwise set forth, an Option may be exercised either in whole at any time or in part from time to time.

(c)An Option may be exercised only by a written notice of intent to exercise such Option with respect to a specific number of shares of
the Common Stock and payment to the Company of the amount of the option price for the number of shares of the Common Stock so specified;
provided, however, that, if the Committee shall in its sole discretion so determine at the time of the grant of any Option, all
or any portion of such payment may be made in kind by the delivery of shares of the Common Stock having a fair market value equal to the
portion of the option price so paid; provided further, however, that no portion of such payment may be made by delivering
shares of the Common Stock acquired upon the exercise of an Option if such shares shall not have been held by the Participant for at least six
months; and provided further, however, that, subject to the requirements of Regulation T (as in effect from time to time)
promulgated under the Exchange Act, the Committee may implement procedures to allow a broker chosen by a Participant to make payment of all or
any portion of the option price payable upon the exercise of an Option and receive, on behalf of such Participant, all or any portion of the
shares of the Common Stock issuable upon such exercise.

(d)The Committee may, in its discretion, permit any Option to be exercised, in whole or in part, prior to the time when it would
otherwise be exercisable.

(e)(1)Notwithstanding the provisions of Section 10(a) or the last sentence of Section 13, in the event that a Change in Control
shall occur, then, each Option theretofore granted to any Participant which shall not have theretofore expired or otherwise been cancelled or
become unexercisable shall become immediately exercisable in full.  For the purposes of this Section 10(e), a "Change in Control" shall be
deemed to occur upon (i) the election of one or more individuals to the Board which election results in one-third of the directors of the
Company consisting of individuals who have not been directors of the Company for at least two years, unless such individuals have been elected
as directors or nominated for election by the stockholders as directors by at least three-fourths of the directors of the Company who have been
directors of the Company for at least two years, (ii) the sale by the Company of all or substantially all of its assets to any Person, the
consolidation of the Company with any Person, the merger of the Company with any Person as a result of which merger the Company is not the
surviving entity as a publicly held corporation, (iii) the sale or transfer of shares of the Company by the Company and/or any one or more of
its stockholders, in one or more transactions, related or unrelated, to one or more Persons under circumstances whereby any Person and its
Affiliates shall own, after such sales and transfers, at least one-fourth, but less than one-half, of the shares of the Company having voting
power for the election of directors, unless such sale or transfer has been approved in advance by at least three-fourths of the directors of
the Company who have been directors of the Company for at least two years, (iv) the sale or transfer of shares of the Company by the Company
and/or any one or more of its stockholders, in one or more transactions, related or unrelated, to one or more Persons under circumstances
whereby any Person and its Affiliates shall own, after such sales and transfers, at least one-half of the shares of the Company having voting
power for the election of directors or (v) as defined in the Participant's employment agreement, if any, with the Company or a Subsidiary.  For
the purposes of this paragraph (1), (i) the term "Affiliate" shall mean any Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, any other Person, (ii) the term "Person" shall mean any
individual, partnership, firm, trust, corporation or other similar entity and (iii) when two or more Persons act as a partnership, limited
partnership, syndicate or other group for the purpose of acquiring, holding or disposing of securities of the Company, such partnership,
limited partnership, syndicate or group shall be deemed a "Person."

(2)In the event that a Change of Control shall occur, then, from and after the time of such event, neither the provisions of this
Section 10(e) nor any of the rights of any Participant hereunder shall be modified or amended in any way.

11.Transferability.  (a)  Except as otherwise provided in Section 11(b), no Option shall be assignable or transferable except by
will and/or by the laws of descent and distribution and, during the life of any Participant, each Option granted to such Participant may be
exercised only by him or her.

(b)  A Participant may, with the prior approval of the Committee, transfer for no consideration an Option which is a non-qualified stock
option to or for the benefit of the Participant's Immediate Family, a trust for the exclusive benefit of the Participant's Immediate Family or
to a partnership or limited liability company for one or more members of the Participant's Immediate Family, subject to such limits as the
Committee may establish, and the transferee shall remain subject to all the terms and conditions applicable to the Option prior to such
transfer.  The term "Immediate Family" shall mean the Participant's children, stepchildren, grandchildren, parents, stepparents, grandparents,
spouse, former spouse, siblings, nieces, nephews, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
including adoptive relationships or any person sharing the Participant's household (other than a tenant or employee).

12.Termination of Employment or Service.  Except as otherwise determined by the Committee, in the event a Participant leaves the
employ or service, or ceases to serve as a director, of the Company and the Subsidiaries, whether voluntarily or otherwise but other than by
reason of his or her death or, in the case of Participant who shall be an employee or director, retirement, each Option theretofore granted to
him or her which shall not have been exercisable prior to the date of the termination of his or her employment or service shall terminate
immediately.  Except as otherwise determined by the Committee, each other Option theretofore granted to him or her which shall not have
theretofore expired or otherwise been cancelled shall, to the extent exercisable on the date of such termination of employment or service and
not theretofore exercised, terminate upon the earlier to occur of (x) 90 days after the date of such Participant's termination of employment or
cessation of service and (y) the date of termination specified in such Option.  Notwithstanding the foregoing, if a Participant is
terminated for cause (as defined herein), each Option theretofore granted to him or her which shall not have theretofore expired or otherwise
been cancelled shall, to the extent not theretofore exercised, terminate forthwith.  Except as otherwise determined by the Committee, in the
event a Participant leaves the employ, or ceases to serve as a director, of the Company and the Subsidiaries by reason of his or her
retirement, each Option theretofore granted to him or her which shall not have theretofore expired or otherwise been cancelled shall become
immediately exercisable in full and shall, to the extent not theretofore exercised, terminate upon the earlier to occur of the expiration of
three years after the date of such retirement and the date of termination specified in such Option.  Except as otherwise determined by the
Committee, in the event a Participant's employment or service with the Company and the Subsidiaries terminates by reason of his or her death,
each Option theretofore granted to him or her which shall not have theretofore expired or otherwise been cancelled shall become immediately
exercisable in full and shall, to the extent not theretofore exercised, terminate upon the earlier to occur of the expiration of three months
after the date of the qualification of a representative of his or her estate and the date of termination specified in such Option.  For
purposes of the foregoing, (a) the term "cause" shall mean:  (i) the commission by the Participant of any act or omission that would
constitute a crime under federal, state or equivalent foreign law, (ii) the commission by the Participant of any act of moral turpitude, (iii)
fraud, dishonesty or other acts or omissions that result in a breach of any fiduciary or other material duty to the Company and/or the
Subsidiaries, (iv) continued substance abuse that renders the Participant incapable of performing his or her material duties to the
satisfaction of the Company and/or the Subsidiaries, or (v) as defined in the Participant's employment agreement, if any, with the Company or a
Subsidiary and (b) the term "retirement" shall mean (I) the termination of a Participant's employment with the Company and all of the
Subsidiaries (x) other than for cause or by reason of his or her death and (y) on or after the earlier to occur of (1) the first day
of the calendar month in which his or her 65th birthday shall occur and (2) the date on which he or she shall have both attained his or
her 55th birthday and completed 10 years of employment with the Company and/or the Subsidiaries or (II) the termination of a Participant's
service as a director with the Company and all of the Subsidiaries (x) other than for cause or by reason of his or her death and (y) on or
after the first day of the calendar month in which his or her 65th birthday shall occur.

13.Adjustment of Number of Shares.  In the event that a dividend shall be declared upon the Common Stock payable in shares of the
Common Stock, the number of shares of the Common Stock then subject to any Option and the number of shares of the Common Stock reserved for
issuance in accordance with the provisions of the Plan but not yet covered by an Option and the number of shares set forth in Section 9(b)
shall be adjusted by adding to each share the number of shares which would be distributable thereon if such shares had been outstanding on the
date fixed for determining the stockholders entitled to receive such stock dividend.  In the event that the outstanding shares of the Common
Stock shall be changed into or exchanged for a different number or kind of shares of stock or other securities of the Company or of another
corporation, whether through reorganization, recapitalization, stock split-up, combination of shares, sale of assets, merger or consolidation
in which the Company is the surviving corporation, then, there shall be substituted for each share of the Common Stock then subject to any
Option and for each share of the Common Stock reserved for issuance in accordance with the provisions of the Plan but not yet covered by an
Option and for each share of the Common Stock referred to in Section 9(b), the number and kind of shares of stock or other securities into
which each outstanding share of the Common Stock shall be so changed or for which each such share shall be exchanged.  In the event that there
shall be any change, other than as specified in this Section 13, in the number or kind of outstanding shares of the Common Stock, or of any
stock or other securities into which the Common Stock shall have been changed, or for which it shall have been exchanged, then, if the
Committee shall, in its sole discretion, determine that such change equitably requires an adjustment in the number or kind of shares then
subject to any Option and the number or kind of shares reserved for issuance in accordance with the provisions of the Plan but not yet covered
by an Option and the number or kind of shares referred to in Section 9(b), such adjustment shall be made by the Committee and shall be
effective and binding for all purposes of the Plan and of each stock option agreement or certificate entered into in accordance with the
provisions of the Plan.  In the case of any substitution or adjustment in accordance with the provisions of this Section 13, the option price
in each stock option agreement or certificate for each share covered thereby prior to such substitution or adjustment shall be the option price
for all shares of stock or other securities which shall have been substituted for such share or to which such share shall have been adjusted in
accordance with the provisions of this Section 13.  No adjustment or substitution provided for in this Section 13 shall require the Company to
sell a fractional share under any stock option agreement or certificate.  In the event of the dissolution or liquidation of the Company, or a
merger, reorganization or consolidation in which the Company is not the surviving corporation, then, except as otherwise provided in Section
10(e) and the second sentence of this Section 13, each Option, to the extent not theretofore exercised, shall terminate forthwith.

14.Purchase for Investment, Withholding and Waivers.  Unless the shares to be issued upon the exercise of an Option by a
Participant shall be registered prior to the issuance thereof under the Securities Act of 1933, as amended, such Participant will, as a
condition of the Company's obligation to issue such shares, be required to give a representation in writing that he or she is acquiring such
shares for his or her own account as an investment and not with a view to, or for sale in connection with, the distribution of any thereof.  In
the event of the death of a Participant, a condition of exercising any Option shall be the delivery to the Company of such tax waivers and
other documents as the Committee shall determine.  In the case of each non-qualified stock option, a condition of exercising the same shall be
the entry by the person exercising the same into such arrangements with the Company with respect to withholding as the Committee may determine.

15.No Stockholder Status.  Neither any Participant nor his or her legal representatives, legatees or distributees shall be or be
deemed to be the holder of any share of the Common Stock covered by an Option unless and until a certificate for such share has been issued.
Upon payment of the purchase price thereof, a share issued upon exercise of an Option shall be fully paid and non-assessable.

16.No Restrictions on Corporate Acts.  Neither the existence of the Plan nor any Option shall in any way affect the right or
power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in
the Company's capital structure or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or
prior preference stock ahead of or affecting the Common Stock or the rights thereof, or dissolution or liquidation of the Company, or any sale
or transfer of all or any part of its assets or business, or any other corporate act or proceeding whether of a similar character or
otherwise.

17.No Employment Right.  Neither the existence of the Plan nor the grant of any Option shall require the Company or any
Subsidiary to continue any Participant in the employ or service of the Company or such Subsidiary.

18.Termination and Amendment of the Plan.  The Board may at any time terminate the Plan or make such modifications of the Plan as
it shall deem advisable; provided, however, that the Board may not without further approval of the holders of a majority of the
shares of the Common Stock present in person or by proxy at any special or annual meeting of the stockholders, increase the number of shares as
to which Options may be granted under the Plan (as adjusted in accordance with the provisions of Section 13), or change the class of persons
eligible to participate in the Plan, or change the manner of determining the option prices.  Except as otherwise provided in Section 13, no
termination or amendment of the Plan may, without the consent of the Participant to whom any Option shall theretofore have been granted,
adversely affect the rights of such Participant under such Option.  The Committee may not, without further approval of the holders of a
majority of the shares of the Common Stock present in person or by proxy at any special or annual meeting of the stockholders, amend any
outstanding Option to reduce the option price, or cancel any outstanding Option and contemporaneously award a new Option to the same optionee
for substantially the same number of shares at a lower option price.

19.Expiration and Termination of the Plan.  The Plan shall terminate on April 30, 2013 or at such earlier time as the Board may
determine.  Options may be granted under the Plan at any time and from time to time prior to its termination.  Any Option outstanding under the
Plan at the time of the termination of the Plan shall remain in effect until such Option shall have been exercised or shall have expired in
accordance with its terms.

20.Options for Outside Directors.

(a)A director of the Company who is not an employee of the Company or a Subsidiary and who is not a director elected solely by the
holders of the Company's Series B convertible preferred stock (an "Outside Director") shall be eligible to receive, in addition to any other
Option which he or she may receive pursuant to Section 6, an annual Option.  Except as otherwise provided in this Section 20, each such Option
shall be subject to all of the terms and conditions of the Plan.

(b)(i)At the first meeting of the Board immediately following each Annual Meeting of the Stockholders of the Company, each Outside
Director shall be granted an Option, which shall be a non-qualified stock option, to purchase 10,000 shares of the Common Stock.
Notwithstanding the foregoing, an Outside Director may not receive a grant under this Section 20 for any year if and to the extent such Outside
Director receives a grant of options to purchase Common Stock under any other Company stock option plan then in effect solely for his or her
services as a director of the Company for such year and the aggregate number of shares of Common Stock issuable upon the exercise of all such
options granted for such year would exceed 10,000.

(ii)The initial per share option price of each Option granted to an Outside Director shall under this Section 20 be equal to the
fair market value of a share of the Common Stock on the date of grant.

(iii)The term of each Option granted to an Outside Director shall be ten years from the date of the granting thereof.

(iv)All or any portion of the payment required upon the exercise of an Option granted to an Outside Director may be made in kind by
the delivery of shares of the Common Stock having a fair market value equal to the portion of the option price so paid; provided,
however, that no portion of such payment may be made by delivering shares of the Common Stock acquired upon the exercise of an Option if
such shares shall not have been held by such Outside Director for at least six months; and provided further, however,
that, subject to the requirements of Regulation T (as in effect from time to time) promulgated under the Exchange Act, the Committee may
implement procedures to allow a broker chosen by such Outside Director to make payment of all or any portion of the option price payable upon
the exercise of an Option and receive, on behalf of such Outside Director, all or any portion of the shares of the Common Stock issuable upon
such exercise.

(c)The provisions of this Section 20 may not be amended except by the vote of a majority of the members of the Board and by the vote of
a majority of the members of the Board who are not Outside Directors.SECOND AMENDMENT AGREEMENT

	
SECOND AMENDMENT AGREEMENT

   

	
Dated as of April 9, 2003

   

	
among

   

	
PHOTRONICS, INC.

   

	
The Borrowing Subsidiaries Party Hereto

   

	
The Guarantors Party Hereto

   

	
The Lenders Party Hereto

   

	
and

   

	
JPMORGAN CHASE BANK,

	
as Administrative Agent   

     SECOND AMENDMENT AGREEMENT, dated as of April 9, 2003, among PHOTRONICS, INC., a Connecticut
corporation (the "Company"), the BORROWING SUBSIDIARIES party hereto, the GUARANTORS party hereto, the LENDERS party hereto, and
JPMORGAN CHASE BANK, as Administrative Agent.

     WHEREAS, the Company, the Borrowing Subsidiaries, the Lenders and the Administrative Agent have
entered into that certain Credit Agreement dated as of July 12, 2002 (as amended by that certain First Amendment Agreement dated as
of February 3, 2003 and as in effect prior to the effectiveness of this Agreement, the "Existing Credit Agreement," and, as amended
by this Agreement, the "Amended Credit Agreement"), pursuant to which the Lenders have agreed, subject to the terms and conditions
therein set forth, to make or participate in Loans to, and to issue or participate in Letters of Credit for the account of, the
Borrowers;

     WHEREAS, the Guarantors have entered into a Guarantee Agreement, pursuant to which the Guarantors
have agreed to guaranty the obligations of the Loan Parties under the Existing Credit Agreement and the other Loan Documents;

     WHEREAS, the Company, the Borrowing Subsidiaries, the Guarantors, the Lenders and the
Administrative Agent have agreed to enter into this Agreement to provide for, among other things, the modification of certain
covenants and definitions; and

     WHEREAS, the Loan Documents (including, without limitation, this Agreement and the Amended Credit
Agreement), as amended and supplemented by this Agreement and as each may be amended or supplemented from time to time, are
referred to herein as the "Amended Loan Documents";

     NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

ARTICLE I

Amendments to Existing Credit Agreement.

     Each of the Borrowers and, subject to the satisfaction of the conditions set forth in Article III,
the Lenders hereby consents and agrees to the amendments to the Existing Credit Agreement set forth below:

          (a)  Section 1.01 of the Existing Credit Agreement is
hereby amended to add the following new definition in appropriate alphabetical order:

          "Consolidated Capital Expenditures" means, for any period,
the dollar amount of gross expenditures (including Capital Lease Obligations) made by the Company and its consolidated Subsidiaries
for the acquisition of any fixed assets, real property, plant and equipment, and all renewals, improvements and replacements
thereto (but not repairs thereof) incurred during such period in each case which are required to be capitalized for financial
reporting purposes in accordance with GAAP.

          (b)  The definition of "Consolidated EBITDA" contained in
Section 1.01 of the Existing Credit Agreement is hereby amended to insert ", plus (f) the aggregate amount of noncash restructuring
charges taken during the fiscal quarter ending on May 4, 2003 in connection with the closure of a manufacturing facility
located in Phoenix, Arizona and related North American manufacturing network consolidation and reduction-in-workforce up to
$40,000,000" immediately subsequent to "$10,500,000".

          (c)  The definition of "Leverage Ratio" contained in
Section 1.01 of the Existing Credit Agreement is hereby amended to insert "minus Permitted Investments as of such date"
immediately subsequent to "Consolidated Indebtedness as of such date".

          (d)  Section 4.02(b) of the Existing Credit Agreement is
hereby amended to insert ", the Company will be in pro forma compliance with the covenants contained in Sections 6.13, 6.14, 6.15,
6.16, 6.17 and 6.18 recomputed as if such Borrowing or Letter of Credit had occurred on the first day of the period for testing
such compliance" immediately subsequent to "no Default shall have occurred and be continuing".

          (e)  Section 5.01(c) of the Existing Credit Agreement is
hereby amended to substitute ", 6.18 and 6.20" in place of "and 6.18".

          (f)  The Existing Credit Agreement is hereby amended to
add new Section 5.10 to read as follows:

          SECTION 5.10.  Retirement of 6% Subordinated
Notes.  Until no 6% Subordinated Note is outstanding, the Company will use the proceeds received from any incurrence of
Consolidated Subordinated Indebtedness on or prior to May 15, 2003 to prepay, purchase, redeem, retire or otherwise acquire the 6%
Subordinated Notes within 90 days of such incurrence.

          (g)   Section 6.15 of the Existing Credit Agreement is
amended and restated to read as follows:

          SECTION 6.15. Leverage Ratio. The Company will not permit the
Leverage Ratio as determined as of the end of each fiscal quarter of the Company to be greater than the applicable ratio set forth
in the following table:

	
If such fiscal quarter ends on:

	
          

	
Applicable Ratio

	
May 4, 2003 or August 3, 2003

	
      

	
3.25 to 1.00

	
November 2, 2003

	
      

	
3.00 to 1.00

	
February 1, 2004 or  May 2, 2004

	
    

	
2.50 to 1.00

	
August 1, 2004 or thereafter

	
    

	
2.25 to 1.00

          (h)  Section 6.16 of the Existing Credit Agreement is
hereby amended and restated to read as follows: "SECTION 6.16.  Intentionally Omitted."

          (i)  Section 6.17 of the Existing Credit Agreement is
hereby amended to substitute "1.00" in place of ".75".

          (j)  The Existing Credit Agreement is hereby amended to
add new Section 6.20 to read as follows:

          SECTION 6.20. Capital Expenditures.  The Company
will not permit Consolidated Capital Expenditures for any fiscal year of the Company to exceed (a) for the fiscal year ending on
November 2, 2003, $60,000,000 and (b) for each fiscal year ending thereafter, $75,000,000.

ARTICLE II

Representations and Warranties

          Each Borrower (as to itself and its subsidiaries) hereby represents
and warrants that as of the Effective Date (as defined in Article III of this Agreement):

          Section 2.01.  Existing Representations and
Warranties.  Each of the representations and warranties contained in Article III of the Existing Credit Agreement and
in each of the other Loan Documents is true and correct, except that any representation or warranty limited by its terms to a
specific date shall be true and correct as of such specific date.

          Section 2.02.  No Defaults.  No event has
occurred and no condition exists which would constitute a Default or an Event of Default as defined in the Existing Credit
Agreement, and no event has occurred and no condition exists which would constitute a Default or an Event of Default as defined in
the Amended Credit Agreement.

          Section 2.03.  Power and Authority; No Conflicts.
The execution, delivery and performance by each of the Loan Parties of the Amended Loan Documents to which it is a party are within
such Loan Party's corporate, partnership or limited liability company powers and have been duly authorized by all necessary
corporate, partnership or limited liability company and, if required, stockholder, partner or member action.  Each Amended
Loan Document to which any Loan Party is a party has been duly executed and delivered by such Loan Party and constitutes a legal,
valid and binding obligation of such Loan Party, enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law.

          Section 2.04.  Governmental Approvals; No
Conflicts.  The execution, delivery and performance by each of the Loan Parties of the Amended Loan Documents to which it
is a party (a) do not require the Company or any Subsidiary to obtain or make any consent or approval of, registration or filing
with, or other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect or
that could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, (b) will not
violate any law or regulation applicable to the Company or any Subsidiary, or the charter, by-laws or other organizational
documents of the Company or any Subsidiary, or any order of any Governmental Authority applicable to the Company or any Subsidiary,
except as to any law, regulation or order the violation of which could not reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect, (c) will not violate or result in a default under any indenture, agreement or
other instrument binding upon the Company or any Subsidiary or their respective assets, or give rise to a right thereunder to
require any payment to be made by the Company or any of its Subsidiaries, except for any such violations, defaults or rights to
require payment that could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect,
and (d) will not result in the creation or imposition of any Lien on any asset of the Company or any of its Subsidiaries.

          Section 2.05.  Financial Condition; No Material Adverse
Change.  (a) The Company has heretofore furnished to the Lenders the consolidated balance sheets of the Company and
its consolidated Subsidiaries and the related statements of income, stockholders equity and cash flows (i) as of and for the fiscal
years ended November 3, 2002, October 31, 2001, October 31, 2000 and October 31, 1999, such  consolidated financial statements
being reported on by Deloitte & Touche LLP, independent public accountants, and (ii) as of and for the fiscal quarter and the
portion of the fiscal year ended February 2, 2003, certified by its chief financial officer. Such financial statements present
fairly, in all material respects, the financial condition and results of operations and cash flows of the Company and its
consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments and
the absence of footnotes in the case of the statements referred to in clause (ii) above.

          (b)  Since February 2, 2003, there has been no material
adverse change in the business, assets, operations, prospects or condition, financial or otherwise, of the Company and the
Subsidiaries, taken as a whole.

ARTICLE III

Conditions Precedent

          The effectiveness of this Agreement is subject to the condition
precedent that the Administrative Agent and the Lenders shall have received on or before April 9, 2003 (the "Effective Date") each
of the following, in form and substance satisfactory to the Administrative Agent and the Required Lenders:

          (a)  counterparts of this Agreement executed by each of
the Company, the Borrowing Subsidiaries, the Guarantors, the Administrative Agent and the Required Lenders;

          (b)  a favorable written opinion (addressed to the
Administrative Agent and the Lenders and dated the Effective Date) of Brenner Saltzman and Wallman, counsel for the Loan Parties,
substantially in the form of Exhibit A; the Company hereby requests such counsel to deliver such opinion;

          (c)  such documents and certificates as the Administrative
Agent or its counsel may reasonably request relating to the authorization of the execution, delivery and performance by each Loan
Party of the Amended Loan Documents to which it is a party; and

          (d)  evidence that all fees and other amounts required to
be paid under Section 4.04 of this Agreement shall have been paid in full.

ARTICLE IV

Miscellaneous

          Section 4.01.  Defined Terms.  Capitalized
terms used herein and not defined herein shall have the meanings assigned to such terms in the Existing Credit Agreement.

          Section 4.02.  Nonwaiver.  The terms of this
Agreement shall not operate as a waiver by the Administrative Agent, the Issuing Bank or any Lender of, or otherwise prejudice, the
rights, remedies or powers of the Administrative Agent, the Issuing Bank or any Lender under the Amended Credit Agreement, under
any other Amended Loan Document or under applicable law.  Except as set forth in Article I: (i) no terms and provisions of the
Loan Documents are modified or changed by this Agreement; and (ii) the terms and provisions of the Loan Documents shall continue in
full force and effect.

          Section 4.03.  Waivers; Amendments.  Any
provision of this Agreement may be amended or modified only by an agreement or agreements in writing signed by the Company and the
Required Lenders, or by the Company and the Administrative Agent acting with the consent of the Required Lenders.

          Section 4.04.  Fees and Expenses. The Company
agrees to pay on the Effective Date to the Administrative Agent, for the account of each Lender who executes this Agreement on or
prior to the Effective Date, an amendment fee equal to .25% of such Lender's Commitment.  The Company shall pay all reasonable
out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and
disbursements of counsel for the Administrative Agent, in connection with the preparation and administration of this Agreement, the
other Amended Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated).

          Section 4.05.  Notices. All notices and other
communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by telecopy in accordance with the terms of the Amended Credit Agreement.

          Section 4.06.  Headings. Article and Section
headings used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction
of, or be taken into consideration in interpreting, this Agreement.

          Section 4.07.  Severability. Any provision of this
Agreement 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 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 4.08.  Counterparts; Integration;
Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single
contract.  The Amended Loan Documents and the separate letter agreements with respect to fees payable to the Administrative
Agent constitute the entire contract among the parties relating to the subject matter thereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter thereof.  Subject to the satisfaction of the
conditions set forth in Article III of this Agreement, this Agreement shall become effective when it shall have been executed by
the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear
the signatures of each of the Company, the Borrowing Subsidiaries, the Guarantors and the Required Lenders, and thereafter shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.  Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement.

          Section 4.09.  Governing Law.  This Agreement
shall be construed in accordance with and governed by the law of the State of New York.

          Section 4.10.  Reaffirmation. Each of the Loan
Parties hereby unconditionally and absolutely affirms its obligations under each Loan Document to which it is a party, as herein
modified, and agrees that such obligations are valid and binding upon it, and enforceable against it, without defense, offset or
counterclaim and hereby acknowledges and consents to, and waives all objections to, all of the transactions contemplated by or
consented to under or in connection with this Agreement.

          Section 4.11.  Consent.  In accordance with
the definition of "Consolidated Subordinated Indebtedness", each of the Lenders hereby consents to (a) the terms and conditions of
Indebtedness in the principal amount of up to $150,000,000 issued on or prior to May 15, 2003 with subordination provisions and
fundamental change redemption provisions substantially in accordance with comparable provisions of that certain draft Indenture
dated as of April 2003 between the Company and JPMorgan Chase Bank, as Trustee, delivered to the Lenders on the date hereof and (b)
the use of proceeds of the Consolidated Subordinated Indebtedness in accordance with Section 5.10 of the Amended Credit
Agreement.

          IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed as of the day and year first above written.

COMPANY:

PHOTRONICS, INC., a Connecticut corporation

By  __________________________________

      Name:

      Title:

BORROWING SUBSIDIARIES:

PHOTRONICS (UK) LIMITED, a United Kingdom corporation

By  __________________________________

      Name:

      Title:

By  _________________________________

Name:

Title:

PKL, LTD., a Korean corporation

By __________________________________

Name:

Title:

PHOTRONICS SEMICONDUCTOR MASK CORPORATION, a Republic of China corporation

By  __________________________________

      Name:

      Title:

GUARANTORS:

PHOTRONICS CALIFORNIA, INC., a California corporation

By  __________________________________

      Name:

      Title:

PHOTRONICS TEXAS, INC., a Texas corporation

By  __________________________________

      Name:

      Title:

PHOTRONICS TEXAS I, LLC, a Texas limited liability company

By  __________________________________

      Name:

      Title:

PHOTRONICS TEXAS, I, L.P., a Texas limited partnership

By  __________________________________

      Name:

      Title:

PHOTRONICS INVESTMENT SERVICES, INC., a Nevada corporation

By  __________________________________

      Name:

      Title:

PHOTRONICS-TOPPAN TEXAS, INC., a Texas corporation

By  __________________________________

      Name:

      Title:

PHOTRONICS TEXAS II, LLC, a Texas limited liability company

By  __________________________________

      Name:

      Title:

PHOTRONICS TEXAS II, L.P., a Texas limited partnership

By  __________________________________

      Name:

      Title:

PHOTRONICS ARIZONA, INC., an Arizona corporation

By  __________________________________

      Name:

      Title:

ALIGN-RITE INTERNATIONAL, INC., a California corporation

By  __________________________________

      Name:

      Title:

LENDERS:

JPMORGAN CHASE BANK, individually and as Administrative Agent

By  _________________________________

      Name:

      Title:

HSBC BANK USA

By  _________________________________

      Name:

      Title:

THE BANK OF NEW YORK

By  _________________________________

      Name:

      Title:

FLEET NATIONAL BANK

By  _________________________________

      Name:

      Title:

CITIZENS BANK OF MASSACHUSETTS

By  _________________________________

      Name:

      Title:

LOCAL FRONTING LENDERS:

JPMORGAN CHASE BANK, SEOUL BRANCH

By __________________________________

     Name:

     Title:

JPMORGAN CHASE BANK, TAIPEI BRANCH

By  __________________________________

      Name:

      Title:

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