FIRST AMENDMENT TO REVOLVING CREDIT AND SECURITY AGREEMENT
Exhibit 10
FIRST AMENDMENT TO REVOLVING CREDIT
AND SECURITY AGREEMENT
This First Amendment to Revolving Credit and Security Agreement (the “Amendment”) is
made this 8th day of June, 2010 by and among ValueVision Media, Inc.,
a Minnesota corporation (“ValueVision”); ValueVision Interactive, Inc., a Minnesota
corporation; VVI Fulfillment Center, Inc., a Minnesota corporation; ValueVision Media
Acquisitions, Inc., a Delaware corporation; ValueVision Retail, Inc., a Delaware
corporation (each a “Borrower”, and collectively “Borrowers”), the financial institutions which are
now or which hereafter become a party hereto as lenders (the “Lenders”) and PNC Bank, National
Association (“PNC”), as agent for Lenders (PNC, in such capacity, the “Agent”).
BACKGROUND
A. On November 25, 2009, Borrowers, Lenders and Agent entered into, inter alia, that certain
Revolving Credit and Security Agreement (as same has been or may be amended, modified, renewed,
extended, replaced or substituted from time to time, the “Loan Agreement”) to reflect certain
financing arrangements between the parties thereto. The Loan Agreement and all other documents
executed in connection therewith to the date hereof are collectively referred to as the “Existing
Financing Agreements.” All capitalized terms not otherwise defined herein shall have the meaning
ascribed thereto in the Loan Agreement.
B. The Borrowers have requested and the Agent and the Lenders have agreed to amend certain
terms and provisions contained in the Loan Agreement, subject to the terms and conditions of this
Amendment.
NOW, THEREFORE, with the foregoing background hereinafter deemed incorporated by reference
herein and made part hereof, the parties hereto, intending to be legally bound, promise and agree
as follows:
1. Amendment.
(a) Upon the Effective Date, Article VI of the Loan Agreement shall be amended by deleting
Section 6.5(a) and replacing it in its entirety as follows:
Fixed Charge Coverage Ratio. If at any time during any fiscal
quarter commencing with the quarter ending January 29, 2011 and any fiscal
quarter thereafter, Borrowers have more than $8,000,000 of outstanding
Revolving Advances or if Undrawn Availability (Modified) is less than
$10,000,000, Borrowers shall cause to be maintained as of the end of such
fiscal quarter, a Fixed Charge Coverage Ratio of not less than 1.0 to 1.0,
measured on a trailing four (4) quarter basis.
(b) Upon the Effective Date, Article VI of the Loan Agreement shall be amended by deleting
Section 6.5(b) and replacing it in its entirety as follows:
Minimum EBITDA. If at any time during any fiscal quarter through
fiscal quarter ending October 30, 2010, Borrowers have more than $8,000,000
of outstanding Revolving Advances or if Undrawn Availability (Modified) is
less than $10,000,000, cause to be achieved a minimum EBITDA of not less
than the following amounts for the end of such quarter (i) ($4,300,000) for
the three (3) month period ending May 1, 2010, (ii) ($10,000,000) for the
six (6) month period ending July 31, 2010 and (iii) ($10,000,000) for the
nine (9) month period ending October 30, 2010.
2. Representations and Warranties. Each of the Borrowers hereby:
(a) reaffirms all representations and warranties made to Agent and Lenders under the Loan
Agreement and all of the other Existing Financing Agreements and confirms that all are true and
correct in all material respects as of the date hereof (except to the extent any such
representations and warranties specifically relate to a specific date, in which case such
representations and warranties were true and correct in all material respects on and as of such
other specific date);
(b) reaffirms all of the covenants contained in the Loan Agreement, covenants to abide thereby
until all Advances, Obligations and other liabilities of Borrowers and Guarantor to Agent and
Lenders under the Loan Agreement of whatever nature and whenever incurred, are satisfied and/or
released by Agent and Lenders;
(c) represents and warrants that no Default or Event of Default has occurred and is continuing
under any of the Existing Financing Agreements;
(d) represents and warrants that it has the authority and legal right to execute, deliver and
carry out the terms of this Amendment, that such actions were duly authorized by all necessary
limited liability company or corporate action, as applicable, and that the officers executing this
Amendment on its behalf were similarly authorized and empowered, and that this Amendment does not
contravene any provisions of its certificate of incorporation or formation, operating agreement,
bylaws, or other formation documents, as applicable, or of any contract or agreement to which it is
a party or by which any of its properties are bound; and
(e) represents and warrants that this Amendment and all assignments, instruments, documents,
and agreements executed and delivered in connection herewith, are valid, binding and enforceable in
accordance with their respective terms, except as such enforceability may be limited by any
applicable bankruptcy, insolvency, moratorium or similar laws affecting creditors’ rights
generally.
3. Conditions Precedent/Effectiveness Conditions. This Amendment shall be effective
upon the occurrence of the following conditions precedent (the “Effective Date”):
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(a) Agent’s receipt of this Amendment fully executed by the Borrowers; and
(b) Borrowers payment to the Agent, for the benefit of the Lenders, of an amendment fee in the
amount of Twenty Five Thousand Dollars ($25,000), in immediately available funds, which fee shall
be non-refundable and not subject to pro-ration.
4. Further Assurances. Each of the Borrowers hereby agrees to take all such actions
and to execute and/or deliver to Agent and Lenders all such documents, assignments, financing
statements and other documents, as Agent and Lenders may reasonably require from time to time, to
effectuate and implement the purposes of this Amendment.
5. Payment of Expenses. Borrowers shall pay or reimburse Agent and Lenders for its
reasonable attorneys’ fees and expenses in connection with the preparation, negotiation and
execution of this Amendment and the documents provided for herein or related hereto.
6. Reaffirmation of Loan Agreement. Except as modified by the terms hereof, all of
the terms and conditions of the Loan Agreement, as amended, and all other of the Existing Financing
Agreements are hereby reaffirmed and shall continue in full force and effect as therein written.
7. Confirmation of Indebtedness. Borrowers confirm and acknowledge that as of the
close of business on June 9, 2010, Borrowers were indebted to Agent and Lenders for the Advances
under the Loan Agreement without any deduction, defense, setoff, claim or counterclaim, of any
nature, in the aggregate principal amount of $0, of which $0 is due on account of Revolving
Advances, and $0 is the undrawn amount outstanding under Letters of Credit, plus all fees,
costs and expenses incurred to date in connection with the Loan Agreement and the Other Documents.
8. Miscellaneous.
(a) Third Party Rights. No rights are intended to be created hereunder for the
benefit of any third party donee, creditor, or incidental beneficiary.
(b) Headings. The headings of any paragraph of this Amendment are for convenience
only and shall not be used to interpret any provision hereof.
(c) Modifications. No modification hereof or any agreement referred to herein shall
be binding or enforceable unless in writing and signed on behalf of the party against whom
enforcement is sought.
(d) Governing Law. The terms and conditions of this Amendment shall be governed by
the laws of the state of Illinois.
(e) Counterparts. This Amendment may be executed in any number of and by different
parties hereto on separate counterparts, all of which, when so executed, shall be deemed an
original, but all such counterparts shall constitute one and the same agreement. Any signature
delivered by a party by facsimile transmission or PDF shall be deemed to be an original signature
hereto.
[SIGNATURES TO APPEAR ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties have caused this Amendment to be executed and delivered by
their duly authorized officers as of the date first above written.
| BORROWERS: | VALUEVISION MEDIA, INC. | |||||
| By: Name: |
/s/ Xxxxxxx X. XxXxxxx
|
|||||
| Title: | VP Quality Assurance – Interim Chief Financial Officer |
|||||
| VALUEVISION INTERACTIVE, INC. | ||||||
| By: Name: |
/s/ Xxxxxx X. Xxxxx
|
|||||
| Title: | Chief Executive Officer and President | |||||
| VVI FULFILLMENT CENTER, INC. | ||||||
| By: Name: |
/s/ Xxxxxx X. Xxxxx
|
|||||
| Title: | Chief Executive Officer and President | |||||
| VALUEVISION MEDIA ACQUISITIONS, INC. | ||||||
| By: Name: |
/s/ Xxxxxx X. Xxxxx
|
|||||
| Title: | Chief Executive Officer and President | |||||
| VALUEVISION RETAIL, INC. | ||||||
| By: Name: |
/s/ Xxxxxx X. Xxxxx
|
|||||
| Title: | Chief Executive Officer and President | |||||
| AGENT AND LENDER | PNC BANK, NATIONAL ASSOCIATION, as Lender and as Agent | |||||
| By: | /s/ Xxxxxx Xxxxxx
|
|||||
| Address: 000 Xxxxx Xxxxxx Xxxxx, Xxxxx 000
Xxxxxxx, Xxxxxxxx 00000 Commitment Percentage: 100% |
||||||
{Signature Page to First Amendment To Revolving Credit
And Security Agreement}
And Security Agreement}
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