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EX. 10.86
WAIVER AGREEMENT
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT
THIS WAIVER AGREEMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT
(the "Waiver") dated as of June 29, 2001 is to that Third Amended and Restated
Credit Agreement dated as of June 30, 2000, (as may be subsequently amended and
modified from time to time, the "Credit Agreement"; terms used but not otherwise
defined herein shall have the meanings provided in the Credit Agreement), by and
among SLEEPMASTER L.L.C., a New Jersey limited liability company (the
"Borrower"), SLEEPMASTER HOLDINGS L.L.C., a New Jersey limited liability company
(the "Parent") and those Domestic Subsidiaries of the Borrower as may from time
to time become party thereto (together with the Parent, collectively, the
"Guarantors"), the several banks and other financial institutions identified
therein (the "Lenders") and FIRST UNION NATIONAL BANK, as administrative agent
for the Lenders thereunder (in such capacity, the "Agent").
W I T N E S S E T H:
WHEREAS, the Lenders have established a credit facility for the benefit
of the Borrower pursuant to the terms of the Credit Agreement;
WHEREAS, the Borrower and the Agent have determined that it will be in
the best interest of all parties to extend the time to comply with certain of
the covenants set forth in that certain Waiver and Second Amendment To Third
Amended and Restated Credit Agreement dated as of May 15, 2001 (the "Second
Amendment") and the Borrower requests that the Required Lenders waive any
Default or Event of Default that will result from such noncompliance; and
WHEREAS, the Required Lenders have agreed to waive certain of the
covenants of the Second Amendment on the terms and conditions hereinafter set
forth;
NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
A. Waiver. The Borrower and the Agent have determined that it will be
in the best interest of all parties to extend the time to comply with the
requirement to negotiate and determine the liquidity levels on or before June
30, 2001 (i) as set forth in footnote 1 and relating to the amended Section 4.2
of the Credit Agreement in Section 10 of the Second Amendment and (ii) as set
forth in footnote 2 and relating to the amended Section 5.9 of the Credit
Agreement in Section 17 of the Second Amendment, which failures constitute a
Default or an Event of Default under the Credit Agreement. The Required Lenders
hereby grant a waiver of compliance with the above-referenced covenants and of
any Defaults or Events of Default resulting from such noncompliance; provided
that the negotiation and determination of liquidity levels are completed on or
prior to July 16, 2001.
B. This Waiver shall become effective when it is executed by a duly
authorized officer of the Borrower, the Guarantors, the Required Lenders and the
Agent.
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C. The Guarantors acknowledge and consent to all of the terms and
conditions of this Waiver and agree that this Waiver and all documents executed
in connection herewith do not operate to reduce or discharge the Guarantors'
obligations under the Credit Agreement or the other Credit Documents. The
Guarantors further acknowledge and agree that the Guarantors have no claims,
counterclaims, offsets, or defenses to the Credit Documents and the performance
of the Guarantors' obligations thereunder or if the Guarantors did have any such
claims, counterclaims, offsets or defenses to the Credit Documents or any
transaction related to the Credit Documents, the same are hereby waived,
relinquished and released in consideration of the Required Lenders' execution
and delivery of this Waiver.
D. This Waiver may be executed in any number of counterparts, each of
which when so executed and delivered shall be deemed an original and it shall
not be necessary in making proof of this Waiver to produce or account for more
than one such counterpart.
E. This Waiver and the Credit Agreement shall be deemed to be contracts
made under, and for all purposes shall be construed in accordance with the laws
of the State of North Carolina.
IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart
of this Waiver to be duly executed and delivered as of the date and year first
above written.
BORROWER: SLEEPMASTER L.L.C.,
a New Jersey limited liability company
By: /s/ ▇▇▇ ▇▇▇▇▇▇▇▇
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Name: ▇▇▇ ▇▇▇▇▇▇▇▇
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Title: CFO
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GUARANTORS: SLEEPMASTER HOLDINGS L.L.C.,
a New Jersey limited liability company
By: /s/ ▇▇▇ ▇▇▇▇▇▇▇▇
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Name: ▇▇▇ ▇▇▇▇▇▇▇▇
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Title: CFO
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LOWER ROAD ASSOCIATES, L.L.C.,
a New Jersey limited liability company
By: /s/ ▇▇▇ ▇▇▇▇▇▇▇▇
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Name: ▇▇▇ ▇▇▇▇▇▇▇▇
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Title: CFO
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PALM BEACH BEDDING COMPANY,
a Florida corporation
By: /s/ ▇▇▇ ▇▇▇▇▇▇▇▇
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Name: ▇▇▇ ▇▇▇▇▇▇▇▇
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Title: CFO
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▇▇▇▇ MANUFACTURING COMPANY,
a Pennsylvania corporation
By: /s/ ▇▇▇ ▇▇▇▇▇▇▇▇
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Name: ▇▇▇ ▇▇▇▇▇▇▇▇
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Title: CFO
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SLEEPMASTER FINANCE CORPORATION,
a Delaware corporation
By: /s/ ▇▇▇ ▇▇▇▇▇▇▇▇
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Name: ▇▇▇ ▇▇▇▇▇▇▇▇
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Title: CFO
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STAR BEDDING PRODUCTS,
a New Brunswick corporation
By: /s/ ▇▇▇ ▇▇▇▇▇▇▇▇
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Name: ▇▇▇ ▇▇▇▇▇▇▇▇
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Title: CFO
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▇▇▇▇ ▇▇▇▇▇ CORPORATION,
a Delaware corporation
By: /s/ ▇▇▇ ▇▇▇▇▇▇▇▇
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Name: ▇▇▇ ▇▇▇▇▇▇▇▇
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Title: CFO
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SIMON MATTRESS MANUFACTURING CO.
a California corporation
By: /s/ ▇▇▇ ▇▇▇▇▇▇▇▇
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Name: ▇▇▇ ▇▇▇▇▇▇▇▇
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Title: CFO
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CRESCENT SLEEP PRODUCTS COMPANY
a Delaware corporation
By: /s/ ▇▇▇ ▇▇▇▇▇▇▇▇
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Name: ▇▇▇ ▇▇▇▇▇▇▇▇
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Title: CFO
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AGENTS AND LENDERS: FIRST UNION NATIONAL BANK,
as Administrative Agent and as a Lender
By: /s/ ▇.▇. ▇▇▇▇▇▇▇
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Name: ▇.▇. ▇▇▇▇▇▇▇
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Title: Senior Vice President
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WACHOVIA BANK, N.A.
By: /s/ ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
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Name: ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
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Title: Vice President
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FIRSTAR BANK, N.A.
By: /s/ ▇▇▇▇▇▇▇ ▇. Best
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Name: ▇▇▇▇▇▇▇ ▇. Best
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Title: Banking Officer
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GMAC BUSINESS CREDIT, LLC
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇▇▇▇▇
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Title: Vice President
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FIFTH THIRD BANK
By: /s/ ▇▇▇▇ ▇. Love, Sr.
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Name: ▇▇▇▇ ▇. Love, Sr.
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Title: Assistant Vice President
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▇▇▇ ▇▇▇▇▇▇ CLO II, LIMITED
BY: ▇▇▇ ▇▇▇▇▇▇ MANAGEMENT INC.,
as Collateral Manager
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Title: Principal
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▇▇▇ ▇▇▇▇▇▇
SENIOR FLOATING RATE FUND
By: ▇▇▇ ▇▇▇▇▇▇ Investment Advisory Corp.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
-------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Title: Principal
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▇▇▇ ▇▇▇▇▇▇ CLO I, LIMITED
BY: ▇▇▇ ▇▇▇▇▇▇ MANAGEMENT INC.,
as Collateral Manager
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Title: Principal
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▇▇▇ ▇▇▇▇▇▇
SENIOR INCOME TRUST
By: ▇▇▇ ▇▇▇▇▇▇ Investment Advisory Corp.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Title: Principal
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ANTARES CAPITAL CORPORATION
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇
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Name: ▇▇▇▇▇ ▇▇▇▇▇
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Title: Director
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CHASE MANHATTAN BANK,
As Trustee of the Antares Funding Trust
created under the Trust Agreement dated as
of November 30, 1999, as Lender
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
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Title: Vice President
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FIRSTRUST BANK
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇▇▇▇▇▇
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Title: Vice President
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BLACK DIAMOND INTERNATIONAL
FUNDING, LTD.
By: /s/ ▇▇▇▇▇ Egglishaw
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Name: ▇▇▇▇▇ Egglishaw
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Title: Director
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BLACK DIAMOND CLO 2000-1 LTD.
By: /s/ ▇▇▇▇▇ Egglishaw
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Name: ▇▇▇▇▇ Egglishaw
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Title: Director
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BLACK DIAMOND CLO 1998-1 LTD.
By: /s/ ▇▇▇▇▇ Egglishaw
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Name: ▇▇▇▇▇ Egglishaw
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Title: Director
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▇▇▇▇▇▇ FINANCIAL, INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇
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Title: Assistant Vice President
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U.S. BANK NATIONAL ASSOCIATION
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
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Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
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Title: Senior Vice President
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▇▇▇▇▇ ▇▇▇▇▇ SENIOR INCOME TRUST
BY: ▇▇▇▇▇ ▇▇▇▇▇ MANAGEMENT
AS INVESTMENT ADVISOR
By: /s/ Payson ▇. ▇▇▇▇▇▇▇▇▇
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Name: Payson ▇. ▇▇▇▇▇▇▇▇▇
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Title: Vice President
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▇▇▇▇▇ ▇▇▇▇▇ INSTITUTIONAL SENIOR
LOAN FUND
BY: ▇▇▇▇▇ ▇▇▇▇▇ MANAGEMENT
AS INVESTMENT ADVISOR
By: /s/ Payson ▇. ▇▇▇▇▇▇▇▇▇
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Name: Payson ▇. ▇▇▇▇▇▇▇▇▇
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Title: Vice President
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OXFORD STRATEGIC INCOME FUND
BY: ▇▇▇▇▇ ▇▇▇▇▇ MANAGEMENT
AS INVESTMENT ADVISOR
By: /s/ Payson ▇. ▇▇▇▇▇▇▇▇▇
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Name: Payson ▇. ▇▇▇▇▇▇▇▇▇
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Title: Vice President
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▇▇▇▇▇ ▇▇▇▇▇ CDO II, LTD.
BY: ▇▇▇▇▇ ▇▇▇▇▇ MANAGEMENT
AS INVESTMENT ADVISOR
By: /s/ Payson ▇. ▇▇▇▇▇▇▇▇▇
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Name: Payson ▇. ▇▇▇▇▇▇▇▇▇
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Title: Vice President
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▇▇▇▇▇ ▇▇▇▇▇ CDO III, LTD.
BY: ▇▇▇▇▇ ▇▇▇▇▇ MANAGEMENT
AS INVESTMENT ADVISOR
By: /s/ Payson ▇. ▇▇▇▇▇▇▇▇▇
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Name: Payson ▇. ▇▇▇▇▇▇▇▇▇
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Title: Vice President
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SENIOR DEBT PORTFOLIO
By: Boston Management and Research
as Investment Advisor
By: /s/ Payson ▇. ▇▇▇▇▇▇▇▇▇
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Name: Payson ▇. ▇▇▇▇▇▇▇▇▇
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Title: Vice President
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SUNTRUST BANK
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
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Title: Vice President
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