AMENDMENT NO. SIX TO SIXTH AMENDED AND RESTATED
CREDIT AGREEMENT
This Amendment No. Six (the "Amendment") dated as of November 1, 1996, is
between Bank of America National Trust and Savings Association (the "Bank") and
OroAmerica, Inc. (the "Borrower").
RECITALS
A. The Bank and the Borrower entered into a certain Sixth Amended and
Restated Credit Agreement dated as of July 22, 1994, as amended December 2, June
30, 1995, July 28, 1995, August 30, 1995, October 6, 1995, March 15, 1996, and
August 30, 1996, (the "Agreement").
B. The Bank and the Borrower desire to further amend the Agreement.
AGREEMENT
1. DEFINITIONS. Capitalized terms used but not defined in this Amendment
shall have the meaning given to them in the Agreement.
2. AMENDMENTS. The Agreement is amended as follows:
2.1 Subparagraph (m)(1) in the definition of "Acceptable Receivable" in
paragraph 1.1 of the Agreement is amended to read in full as follows:
"(1) that, if it carries dating terms in excess of thirty (30)
days, is not paid within the sixty (60) day period starting on its due
date, provided, however, that the due date shall be no later than one
hundred fifty (150) days from the invoice date;"'
2.2 The following is added as new subparagraph (m)(2) in the definition
of "Acceptable Receivable" in paragraph 1.1 of the Agreement, and
subparagraph (m)(2) and (m)(3) are re-numbered (m)(3) and (m)(4),
respectively:
"(2) that, if it does not carry dating terms in excess of thirty
(30) days, is not paid within the ninety (90) day period starting on
its invoice date;"
2.3 The definition of "Availability Period" in paragraph 1.1 of the
Agreement is hereby amended to read in full as follows:
"'Availability Period' means the period commencing on the date of
this Agreement and ending on August 1, 1998."
2.4 The words "and accounts payable" are added to subparagraph 7.5(e)(b)
of the Agreement, immediately following the word "Receivables."
2.5 The following is added to paragraph 7.5 of the Agreement as new
subparagraph 7.5(i):
"(i) At Borrower's option, either (a) within ten (10) days after
the end of each calendar month, or (b) within the period commencing on
the eleventh day after the end of each month and concluding on the
thirtieth day, a collateral certificate prepared by Borrower in form
approved by Consignor (each a "Collateral Certificate"). Collateral
Certificates submitted within the period described in subsection (a)
need not contain a calculation of Receivables that are not Acceptable,
but must contain an accounts receivable roll forward report. Such
Certificates submitted within the period described in subsection (b)
must contain a calculation by Borrower of the calculation of Acceptable
Receivables for the period ending on the date of such Certificate. If
Bank calculates the Borrowing Base, Bank will provide a borrowing base
certificate to Borrower setting forth its
determination of the Borrowing Base, which certificate will be
conclusive and binding in the absence of manifest error. Acceptable
Receivables as determined by Bank will become effective upon
calculation by Bank and will remain in effect until a new calculation
is made by Bank in accordance with this Agreement. At Borrower's
option, Borrower may also submit weekly Collateral Certificates from
September 1 through December 31 of each year. All weekly Collateral
Certificates must be accompanied by updating sales and collection
journals. The amount of Receivables that are not Acceptable
Receivables will be adjusted only on a monthly basis, even if weekly
Collateral Certificates are submitted in accordance with the
foregoing."
2.6 The following is added to paragraph 7.5 of the Agreement, at the
conclusion thereof:
"All of the foregoing financial statements and reports provided to
the Bank, as well as the computations of the financial covenants
contained within paragraphs 7.10 through 7.13, inclusive, 7.16, 7.20,
7.21, and 8.10, shall be on a consolidated basis."
2.7 The following is added to the Agreement as new paragraph 8.22:
"8.22 FUTURES CONTRACTS. Enter into any forward purchase
contracts for any Precious Metal except in quantities required by
Consignee to fill fixed price orders from Consignee's customers."
2.8 Exhibits X-0, X-0, X-0, and C-2 of the Agreement are hereby amended
in their entirety to read as set forth on the copies of such Exhibits
attached hereto.
3. REPRESENTATIONS AND WARRANTIES. When the Borrower signs this Amendment,
the Borrower represents and warrants to the Bank that: (a) there is no event
which is, or with notice or lapse of time or both would be, a default under the
Agreement, (b) the representations and warranties in the Agreement are true as
of the date of this Amendment as if made on the date of this
Amendment, (c) this Amendment is within the Borrower's powers, has been duly
authorized, and does not conflict with any of the Borrower's organizational
papers, and (d) this Amendment does not conflict with any law, agreement, or
obligation by which the Borrower is bound.
4. EFFECT OF AMENDMENT. Except as provided in this Amendment, all of the
terms and conditions of the Agreement shall remain in full force and effect.
This Amendment is executed as of the date stated at the beginning of this
Amendment.
BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION
By Xxxx Xxxxxx
---------------------------------
Title Vice President
------------------------------
OROAMERICA, INC.
By Xxxx Xxxxxxxx
---------------------------------
Title Treasurer
------------------------------
EXHIBIT A-3
FOREIGN VENDORS
AFFILIATE FOREIGN VENDORS
Exportadores Bolivianos S.R.L.
Calle Xxxxx Xxxxxx #285
La Paz, Bolivia
L.A. Estilos-LinkZona Franca Industrial
San Xxxxx de Marcoris
Santo Xxxxxxx
Dominican Republic
Oroamerica Italia S.R.L.
Xxxxx Xxxxxxxx, Xx. 00
00000 Xxxxxxx Del Grappa
Vincenza
Italy
P.T. Nikijoyo/Oroindo
P.T. Nikijoyo
Xx. Xxxxxxx #00
Xxxxxx-Xxxxx
Xxxxxxxxx
S.I.C.O.R.
Xxx Xxxxxx 0
Xxxxxx X'Xxxxxxxx
Xxxxxxxx
Xxxxx, 00000
Star Exports S.A. - Links
General Xxxxxxx 000
Xxxxxxxx
Xxxx, Xxxx
EXHIBIT A-3
NON-AFFILIATE FOREIGN VENDORS
Adipaz Ltd. Bassano Gold Products SRL
20 Xxxxxx Xxxxxx St. Xxx Xxxxxxxx xx Xxxxx 00
Xxxxxxx 00000 Xxxxxxxx
Xxxxxxxxx, Xxxxxx Xxxxx
Alangold Creazioni Beffi Xxxxxx Factory
Via Pavane, 7 Xxx Xxxxxxxxxxx 00
00000 Xxxxxxxxxx 17030 Carlenda (SV)
Vicenza, Italy Italy
Xxxxxxxxxxx Xxxxxx Bellanda E. Boratto
Xxx X. Xxxxxxxx, 0/0 Xxx X. Xxxxxxx, 00
00000 Trissino (VI) 36100 Vicenza
Italy Italy
Xxxxxx Xxxxxxxx Chiangmai Chain & Jewelry
Xxx Xxx Xxxxxxxx, 0/0 Xxxxxxxxx Xxxxxxxxxx
00000 Bassano Del Grappa Chiangmai 50002
Vicenza Thailand
Italy
ARPAS International Christie's Jewelers
Xxxxx Xxxxx Tecer Cad, Gol Edif. Abaroa Plaza Abaroa
Xx. 00 Xxxxxx Xxxxxxxxxx Xxxxxxx
Xxxxxxxx, Xxxxxx Castilla 0000
Xx Xxx, Bolivia
Aurex Chile LTDA
Decima Avenida 1244 Ciemmeo SRL
San Xxxxxx Xxx Xxxxxx 0
Xxxxxxxx, Xxxxx 00000 Mussolente
Vicenza, Italy
Aurindustria Del Peru S.A.
Pasaje Xxxxx Xxxxxx #120 Claudio Fuccin
Xxx. Xxxxxxx, Xxx Xxxxxx Xxxxxxxxxxxxx Xxxx &
Xxxx, Xxxx Fine Jewelry
Piazza Garibaldi, 10-36100
Aux S.A. Vicenza
Urb. Industrial Grimaneza Italy
Xxxxx 0 Xxxx 0-00 Xxxxxx
Xxxx, Xxxx
EXHIBIT X-0
XXX-XXXXXXXXX XXXXXXX XXXXXXX
Xx. Xx. Finesse
Strada E N 32 S. Urb. La Villa
Zend X.X. Xxx 00-0000
00000 Xxxxxx Xxxxxxxxxx
Xxxxx Lima, Peru
Xxxxxxx Xxx Xxxxx G.B. Catene SNC
Xxx Xxxxxxx, 000 Xxx Xxxxxx, 00
00000 Xxxxxxx 52100 Arezzo
Italy Italy
Xxxxx Xxxxxxxxxxx Ltd. Gold G.D.C.
0 Xxxxxxx Xxxxxx Xxx Xx Xxxxxxxxx, 00
X.X. Xxx 0000 00000 Xxxxx xx Xxxx
Petah Tikwa Arezzo, Italy
Israel 49130
Gold Masters
De Oro Strada Asolana, 93/A
De Oro S.A. 36060 Xxxxxx X'Xxxxxxxx
Xx. Xxxxxxxxxx 000 Xxxxxxxx, Xxxxx
Miraflores
Lima, Peru Goldeks Alyin Ve Douz
Tic. A.S.
Eurosilber S.N.C. Piyerloti Cad No. 26-28
Xxx Xxxxxxx Xxxxxxxx 0/X Xxxxxxxxxxxx, Xxxxxxxx
00000 Xxxxxxxx Turkey
Italy
Goldline, SNC.
Evan S.R.L. Xxx Xxxxxxx, 00/0
Xxx X. Xxxxxxx 0/X 00000 Arezzo
36060 Casoni Di Mussolente Italy
Vicenza
Italy Goldstar
Xxx Xxxxxxxxxx, 0
Xxxxx 00000 Xxxxxxx
Xxx Xxxxxxx, 00 Xxxxx
00000 Xxxxxxxx Xxxx (TO)
Italy Itam
Zona Indust. Manciano, 48/E
52043 Catiglion Fiorent.
Arrezzo
Italy
EXHIBIT A-3
NON-AFFILIATE FOREIGN VENDORS
L.A.C. Xxxxxx Metalugico Andina
Via Spin. 142 Xxxxxx Metalugico Xxxxxx X.X.
Xxxxxx Xx Xxxxxxxx Xxxxxxxxxx X Xxxxxx 000
Xxxxx Xx.000
Xxxx 00, Xxxx
Lacchetti
F.LLI Lacchetti Di Xxxxxxxxxx Xxxxxxx
& Gianpaolo SNC The Jerusalem Jewelry Mfg. Co.
Xxx Xxxx'Xxxxxxxxx Xxxxxx Xxxxxxxxxx Xxxx
00000 Trissino P.O. Box 19379
Vincenza 00000 Xxxxxxxxx Israel
Italy
Xxxxx & Falsini
Locam Loc. Castelnuovo, 208
Xxx Xxx Xxxxxxxxxx, 00 00000 Xxxxxxxx
36061 Bassano Del Grappa Arezzo
Vicenza Italy
Italy
Nuovo Catena
Xxxxxxxxx Xxxxxxx Xxx Xxxxxx, 0
Xxx Xxxxxxxxxx, 000 00000 Mussolente
36061 Bassano Del Grappa Xxxxxxxx
Xxxxxxxx Italy
Italy
Organizacion de Exportacion
Massimiliano Scuccato Arreddondo S.A.
Via X. Xxxxxxxxx, 19 Calle Xxxxxx No. 167-173
36050 Bressanvido La Paz, Xxxxxx
Xxxxxxxx
Italy Oroisrael Jewelry Industies
45 Kibbutz Galuyot St.
Creazioni Michelangel Tel-Aviv 66550
Xxx Xxxxx, 000/X Xxxxxx
00000 Capresse, Xxxxxxxxxxxx
Arezzo B. Quattro
Italy Xxx Xxxxxx, 0X
00000 Xxxxxxxx
Xxxxxxxx
Xxxxx
EXHIBIT A-3
NON-AFFILIATE FOREIGN VENDORS
Xxxx Xxxxxxxx Tecnigold SPA
Oreficeria F.LLI Rico Xxx Xxxxxx, X/X
Xx Xxxx X. & X. X.X.X. 00000 Bassano Del Grappa
Xxx Xxxx 'Xxxxxxxxx, 00/X Xxxxxxx
00000 Xxxxxxxx Xxxxx
Vincenza
Italy X. Xxxxxxxxx
Via Fievan Xxxxx, 38
Royal Chain Canada, Inc. 00000 Xxxxxx
000 Xxxxxxx Xxxxxx Xxxxx
Xxxx #0
Xxxxxxx, Xxxxxxx X0X0X0 Triade 1992
Canada 29 Contra Santa Caterina
36100 Vicenza
S.I.L.O. Italy
Xxx Xxxxxxx Xxxxxxx
0/X - Xxxxxxxxxx Xxxxxxxx Xxxxxx xxx Xxx
Xxxxx, 52029 (AR) Xxx Xxxxxxx Xxxxxxxx, 00
Xxxxxxx
Xxxxxxx Xxxxxx XXX Xxxxx
Xxx Xxxxxxx, 00
00000 Xxxxxxx Xxx-X-Xxxx
Xxxxx Xxx Xxxxxxxxxx, 000
00000 Xxxxxx
Sun-Ray Setting Italy
San Xxxx Foreign Trade Zone 61
Xxxxxxxx 0
Xxx 0-X
Xxxx #000, Xx 2.4
Xxxxxx Xxxxx, Xxxxxxxx
Xxxxxx Xxxx 00000
Xxxxxxx Xxxxxxxxx
Xxx Xxxxxxxxx, 0
00000 Xxxxxxxx
Xxxxxxxx
Xxxxx
EXHIBIT A-4
CUSTOMER RECONSIGNMENT PROGRAMS
SECURED
Xxxxxxx & Xxxxxxx Diamond Parks Fine Jewelry
000 0xx Xxx. 000 X. Xxxxxx Xxxx Xxxx
Xxx Xxxx, XX 00000 Xxxxxx, XX 00000
Barry's
000 X. Xxxxx Xxx.
Xxxxxxxx, XX 00000
Crescent Jewelers
Xxxxxx X. Xxxxxx Co.
000 00xx Xx.
Xxxxxxx, XX 00000
Fedco Inc.
0000 Xxxxx Xx Xxxxxxx Xxxx
Xxxxx Xx Xxxxxxx, XX 00000
Finlay
000 0xx Xxx.
Xxx Xxxx, XX 00000
Kohl's Dept. Stores
North 54 W. 00000 Xxxxxxx Xx.
Xxxxxxxxx Xxxxx, XX 00000
Q.V.C./Xxxxxxx Hills Co.
Goshen Corporate Park
0000 Xxxxxxxxxx Xxxx.
Xxxxxxxxxxx, XX 00000
Sears
0000 Xxxxxxxxxx Xxx., Xxxxx 0000
Xxxxxx, XX 00000-0000
Sterling
000 Xxxxx Xx.
Xxxxx, XX 00000
Zales Corp.
000 X. Xxxxxx Xxxx Xxxx
Xxxxxx, XX 00000
EXHIBIT A-4
CUSTOMER RECONSIGNMENT PROGRAMS
UNSECURED
Xxxxxx
Xxxxx Xxxxx Xx.
Xxxxxx, XX 00000
Xxxx Xxxxx Jewelers
0000 X.X. 00xx Xxx.
Xxxxxxxx, Xxxxxx 00000
Xxxxxxxx & Co.
0 X. Xxxxx Xxxxxx
Xxxxxxxx, Xxxxxxx 00000
Max Club
0000 Xxxxx Xxx.
Xxxxxxxxxx Xxxxx, XX 00000
X.X. Associates
0000 Xxxxx 00xx Xx.
Xxxxxxxxxx, XX 00000
EXHIBIT C
MONTHLY REPORTS
EXHIBIT C-1
PRECIOUS METALS BORROWING BASE REPORT
Month/Year: ______________
Gold Price: $____________ / ounce
Silver Price: $____________ / ounce
A. CONSIGNED OUNCES:
GOLD:
ABN: ____________________ oz. $____________________
Banque Paribas: ____________________ oz. $____________________
Credit Suisse: ____________________ oz. $____________________
Deutsche Bank: ____________________ oz. $____________________
Fleet: ____________________ oz. $____________________
Republic: ____________________ oz. $____________________
UBS: ____________________ oz. $____________________
UBS/Chemical: ____________________ oz. $____________________
Other: ____________________ oz. $____________________
TOTAL CONSIGNED
GOLD OUNCES: ____________________ oz. $____________________
SILVER:
ABN: ____________________ oz. $____________________
Banque Paribas: ____________________ oz. $____________________
Credit Suisse: ____________________ oz. $____________________
Deutsche Bank: ____________________ oz. $____________________
Fleet: ____________________ oz. $____________________
Republic: ____________________ oz. $____________________
UBS: ____________________ oz. $____________________
UBS/Chemical: ____________________ oz. $____________________
Other: ____________________ oz. $____________________
TOTAL CONSIGNED
SILVER OUNCES: ____________________ oz. $____________________
B. ADJUSTED ELIGIBLE A/R (AS DEFINED): $____________________
C. EQUITY GOLD: ____________________ oz. $____________________
EQUITY SILVER: ____________________ oz. $____________________
Greater of:
B + C GREATER THAN OR EQUAL TO $12MM
B + C GREATER THAN OR EQUAL TO Fifteen (15%) of FMV of Consigned
Precious Metal
B + C GREATER THAN OR EQUAL TO FMV of Gold in Foreign Locations with
Affiliate Foreign Vendors and
Non-Affiliate Foreign Vendors PLUS
FMV of 1,500 oz. of Gold on Unsecured
Memorandum
GOLD IN BURBANK: ____________________ oz.
SILVER IN BURBANK: ____________________ oz.
GOLD AT OTHER U.S.
CORPORATE LOCATIONS
(Ex. A-1) ____________________ oz.
TOTAL: ____________________ oz.
GOLD AT DOMESTIC VENDORS (Ex. A-2): ____________________ oz.
GOLD AT NON-AFFILIATE FOREIGN VENDORS (Ex. A-3):
Bolivia: ____________________ oz.
Canada: ____________________ oz.
Chile: ____________________ oz.
Israel: ____________________ oz.
Italy: ____________________ oz.
Peru: ____________________ oz.
Puerto Rico: ____________________ oz.
Thailand: ____________________ oz.
Turkey: ____________________ oz.
Other: ____________________ oz.
TOTAL: ____________________ oz.
GOLD AT AFFILIATE FOREIGN VENDORS (Ex. A-3):
Bolivia: ____________________ oz.
Dominican Republic: ____________________ oz.
Indonesia: ____________________ oz.
Italy: ____________________ oz.
Peru: ____________________ oz.
Other: ____________________ oz.
TOTAL: ____________________ oz.
SECURED MEMORANDUM/RECONSIGNMENT
PROGRAMS (Ex. A-4) ("SM/RPs"): ____________________ oz.
UNSECURED MEMORANDUM/RECONSIGNMENT
PROGRAMS (LESS THAN OR EQUAL TO 1,500 oz.) (Ex. A-4)
("UM/RPs"): ____________________ oz.
SM/RPs + UM/RPs
(LESS THAN OR EQUAL TO 40,000 oz.): YES/NO
SAMPLE/SALESPERSON LINES
LESS THAN OR EQUAL TO 2,700 oz. all salespersons: ____________________ oz.
LESS THAN OR EQUAL TO 150 oz. per salesperson: ____________________ oz.
VALUE ADDED/TANGIBLE NET WORTH
(LESS THAN OR EQUAL TO 15%): YES/NO
GOLD ABROAD WITH ANY ONE NON-AFFILIATE
FOREIGN VENDOR (LESS THAN OR EQUAL TO 4,000 oz.): YES/NO
AGGREGATE GOLD ABROAD WITH ALL
AFFILIATE FOREIGN VENDORS AND
NON-AFFILIATE FOREIGN VENDORS
(LESS THAN OR EQUAL TO 40,000 oz. 4/1-11/30; LESS THAN OR EQUAL TO 25,000 oz.
all other times): YES/NO
AGGREGATE OUNCES ON RECONSIGNMENT/
MEMORANDUM (LESS THAN OR EQUAL TO 30% of Consignee's
Tangible Net Worth): YES/NO
RECONSIGNMENT MEMORANDUM OUNCES TO
ANY SINGLE CUSTOMER (LESS THAN OR EQUAL TO 10% of
Consignee's Tangible Net Worth): YES/NO
TOTAL PRECIOUS METAL CONSIGNED LESS THAN OR EQUAL TO 170%
(160% 2/1-7/31) Precious Metal at
Principal Office and New York YES/NO
TOTAL CONSIGNMENT OUNCE
AVAILABILITY ____________________ oz. $____________________
EXHIBIT C-2
COVENANT COMPLIANCE CERTIFICATE
MONTH/YEAR: _________________________________
REQUIRED ACTUAL
Current Ratio (perpetual test): GREATER THAN OR EQUAL TO 2:1 (1/1-9/30)
GREATER THAN 1.5:1 (10/1-12/31) ________________
Working Capital (perpetual test): GREATER THAN OR EQUAL TO $32MM ________________
Minimum Tangible Net
Worth (perpetual test): GREATER THAN OR EQUAL TO $38MM (FYE 1995)
GREATER THAN OR EQUAL TO $42MM + 75% x NOI
of previous quarter ________________
Total Liabilities (GAAP)/TNW
(perpetual test): LESS THAN OR EQUAL TO 1.25:1 ________________
Total Liabilities (including
consignments, excluding
Subordinated Indebtedness)/
TNW (perpetual test): LESS THAN OR EQUAL TO 2.75:1 (1/1-6/30);
LESS THAN OR EQUAL TO 2.95:1 (7/1-8/31)
LESS THAN OR EQUAL TO 3.25:1 (9/1-12/31) ________________
Interest Coverage
(as defined; annual test): GREATER THAN OR EQUAL TO 1.15:1 ________________
