Exhibit 10
FIRST AMENDMENT TO CREDIT AGREEMENT
THIS FIRST AMENDMENT TO CREDIT AGREEMENT (the "Amendment") dated as of
October 30, 2001, by and among BIG LOTS STORES, INC., an Ohio corporation
(formerly Consolidated Stores Corporation, an Ohio corporation), as Borrower
(the "Borrower"), the GUARANTORS parties thereto, the BANKS (as defined in the
Credit Agreement defined below), and NATIONAL CITY BANK, as Administrative
Agent.
W I T N E S S E T H:
WHEREAS, the parties hereto are parties to that certain Credit
Agreement dated as of May 8, 2001 by and among Borrower, the Banks, the
Administrative Agent and the other parties thereto, as amended (the "Credit
Agreement") and desire to amend certain terms thereof as set forth herein;
NOW, THEREFORE, the parties hereto, in consideration of their mutual
covenants and agreements hereinafter set forth and intending to be legally bound
hereby, covenant and agree as follows:
1. DEFINITIONS.
Defined terms used herein unless otherwise defined herein shall have
the meanings ascribed to them in the Credit Agreement as amended by this
Amendment.
2. AMENDMENT OF CREDIT AGREEMENT.
A. DEFINITIONS
A new definition is hereby added to Section 1.1 to read as
follows:
"FIRST AMENDMENT EFFECTIVE DATE shall mean the date
of the first Amendment to Credit Agreement among the parties hereto
amending this Agreement.
B. MINIMUM FIXED CHARGE COVERAGE RATIO (SECTION 7.2.19). Section
7.2.19 shall be amended and restated in its entirety as follows:
"7.2.19 - MINIMUM FIXED CHARGE COVERAGE RATIO.
The Loan Parties shall not permit the Fixed Charge
Coverage Ratio, calculated as of the end of each fiscal quarter for the
four (4) fiscal quarters then ended, to be less than the following
levels as of the following quarter-ends:
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FISCAL QUARTER ENDING (NEAREST) MINIMUM RATIO
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October 31, 2001 1.55 to 1.0
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January 31, 2002 1.55 to 1.0
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April 30, 2002 1.55 to 1.0
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FISCAL QUARTER ENDING (NEAREST) MINIMUM RATIO
------------------------------- -------------
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July 31, 2002 1.55 to 1.0
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October 31, 2002 1.55 to 1.0
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January 31, 2003 1.55 to 1.0
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April 30, 2003 1.60 to 1.0
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July 31, 2003 1.60 to 1.0
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October 31, 2003 1.60 to 1.0
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January 31, 2004 1.60 to 1.0
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April 30, 2004 and thereafter 1.65 to 1.0
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C. MAXIMUM LEVERAGE RATIO (SECTION 7.2.20). Section 7.2.20 shall
be amended and restated in its entirety as follows:
"7.2.20 MAXIMUM LEVERAGE RATIO.
The Loan Parties shall not permit the Leverage Ratio,
calculated as of the end of each fiscal quarter, to be greater than the
following levels as of the following quarter-ends:
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FISCAL QUARTER ENDING (NEAREST) MAXIMUM RATIO
------------------------------- -------------
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October 31, 2001 3.50 to 1.0
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January 31, 2002 3.35 to 1.0
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April 30, 2002 3.35 to 1.0
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July 31, 2002 3.35 to 1.0
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October 31, 2002 3.50 to 1.0
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January 31, 2003 3.15 to 1.0
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April 30, 2003 3.15 to 1.0
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July 31, 2003 3.25 to 1.0
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FISCAL QUARTER ENDING (NEAREST) MAXIMUM RATIO
------------------------------- -------------
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October 31, 2003 3.25 to 1.0
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January 31, 2004 3.00 to 1.0
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April 30, 2004 and thereafter 2.85 to 1.0
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3. REPRESENTATIONS AND WARRANTIES.
Each of the Loan Parties hereby represents and warrants to the Banks as
follows:
A. The representations and warranties of the Loan
Parties contained in the Credit Agreement, are true and correct on and as of the
date hereof with the same force and effect as though made by the Loan Parties on
such date, except to the extent that any such representation or warranty
expressly relates solely to a previous date; and
B. Each of the Loan Parties is in compliance with all
terms, conditions, provisions, and covenants contained in the Credit Agreement
and the execution, delivery, and performance of this Amendment has been duly
authorized by all necessary corporate action, requires no governmental approval,
and will neither contravene, conflict with, nor result in the breach of any law,
charter, articles, or certificate of incorporation, bylaws, or agreement
governing or binding upon such Loan Party or any of its property; and, no Event
of Default or Potential Default has occurred and is continuing or would result
from the making of this Amendment.
4. AMENDMENT.
The Credit Agreement and other Loan Documents referred to herein and
certain of the exhibits and schedules thereto are hereby amended in accordance
with the terms hereof and any reference to the Credit Agreement or other Loan
Documents in any document, instrument, or agreement shall hereafter mean and
include the Credit Agreement or such Loan Document, including such schedules and
exhibits, as amended hereby. In the event of irreconcilable inconsistency
between the terms or provisions hereof and the terms or provisions of the Credit
Agreement or such Loan Document, including such schedules and exhibits, the
terms and provisions hereof shall control.
5. FORCE AND EFFECT.
Each of the Loan Parties reconfirms, restates, and ratifies the Credit
Agreement and all other documents executed in connection therewith except to the
extent any such documents are expressly modified by this Amendment and each of
the Loan Parties confirms that all such documents have remained in full force
and effect since the date of their execution.
6. GOVERNING LAW.
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This Amendment shall be deemed to be a contract under the laws of the
State of Ohio and for all purposes shall be governed by and construed and
enforced in accordance with the internal laws of the State of Ohio without
regard to its conflict of laws principles.
7. COUNTERPARTS; TELECOPY; EFFECTIVE DATE.
This Amendment may be signed in any number of counterparts each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument. Delivery of executed signature pages by facsimile
transmission will constitute effective and binding execution and delivery. This
Amendment is effective on the date first written above and upon execution and
delivery of this Amendment by the Borrower and the Required Banks.
[SIGNATURES BEGIN ON NEXT PAGE]
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[SIGNATURE PAGE 1 OF 7 TO FIRST AMENDMENT]
IN WITNESS WHEREOF and intending to be legally bound hereby, the
parties hereto have executed this Amendment as of the date first above written.
BORROWER:
BIG LOTS STORES, INC. (formerly
CONSOLIDATED STORES CORPORATION, an
Ohio corporation)
By: /S/ Xxxxxxx Xxxxxx
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Name: Xxxxxxx Xxxxxx
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Title: SVP, CFO
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GUARANTORS:
BIG LOTS, INC., an Ohio corporation (formerly
CONSOLIDATED STORES CORPORATION, a
Delaware corporation)
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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MAC FRUGAL'S BARGAINS - CLOSE-OUTS,
INC., a Delaware corporation
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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TRO, INC., an Illinois corporation
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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[SIGNATURE PAGE 2 OF 7 TO FIRST AMENDMENT]
CAPITAL RETAIL SYSTEMS, INC., an Ohio
corporation
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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PNS STORES, INC., a California
corporation
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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WEST COAST LIQUIDATORS, INC., a California
corporation
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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X.X. XXXX COMPANY, an Ohio corporation
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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CSC DISTRIBUTION, INC., an Alabama
corporation
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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[SIGNATURE PAGE 3 OF 7 TO FIRST AMENDMENT]
CLOSEOUT DISTRIBUTION, INC., a
Pennsylvania corporation
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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INDUSTRIAL PRODUCTS OF NEW ENGLAND,
INC., a Maine corporation
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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TOOL AND SUPPLY COMPANY OF NEW
ENGLAND, INC., a Delaware corporation
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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MIDWESTERN HOME PRODUCTS, INC., a
Delaware corporation
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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MIDWESTERN HOME PRODUCTS COMPANY,
LTD., an Ohio corporation
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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[SIGNATURE PAGE 4 OF 7 TO FIRST AMENDMENT]
CONSOLIDATED PROPERTY HOLDINGS,
INC., a Nevada corporation
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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GREAT BASIN LLC, a Delaware limited liability
company
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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SONORAN LLC, a Delaware limited liability
company
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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SAHARA LLC, a Delaware limited liability
company
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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XXXXXX XX, LLC (formerly DDC, LLC), a
Delaware limited liability company
By: /S/ Xxxxxxx Xxxxxx
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Title: SVP, CFO
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[SIGNATURE PAGE 5 OF 7 TO FIRST AMENDMENT]
ADMINISTRATIVE AGENT:
NATIONAL CITY BANK, individually and as
Administrative Agent, Lead Arranger and Managing
Agent
By: /S/ Xxxxx X. Xxxxxxx
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Title: Senior Vice President
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SYNDICATION AGENT:
FLEET NATIONAL BANK, individually and as
Syndication Agent
By: /S/ Xxxx X. X. Xxxxx
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Title: Director
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OTHER AGENTS:
FIRST UNION NATIONAL BANK, individually
and as Documentation Agent
By: /S/ Xxxxx X. Xxxxxx
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Title: Assistant Vice President
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PNC BANK, NATIONAL ASSOCIATION,
individually and as a Managing Agent and
Documentation Agent
By: /S/ Xxxxx X. Xxxxxxx
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Title: Vice President
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[SIGNATURE PAGE 6 OF 7 TO FIRST AMENDMENT]
BANK OF AMERICA, N.A., individually and as a
Managing Agent
By: /S/ Xxx Xxxxxxxxxx
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Title: Vice President
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THE BANK OF NEW YORK, individually and as a
Managing Agent
By: /S/ Xxxxxxx X. Xxxxxx
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Title: Vice President
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FIRSTAR BANK, N.A., individually and as a
Managing Agent
By: /S/ Xxxxxx X. Xxxxx
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Title: Vice President
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OTHER BANKS:
GUARANTY BANK
By: /S/ Xxxxx Xxxxxx
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Title: Vice President
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HIBERNIA NATIONAL BANK
By: /S/ Xxxxxxx X. Xxxxxx
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Title: Portfolio Manager
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[SIGNATURE PAGE 7 OF 7 TO FIRST AMENDMENT]
LASALLE BANK NATIONAL ASSOCIATION
By: /S/ Xxxxx X. Xxxxxxxx
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Title: First Vice President
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THE FIFTH THIRD BANK, CENTRAL OHIO
By: /S/ Xxxx X. Xxxxxxxxx
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Title: Vice President
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XXXXX FARGO BANK, NATIONAL ASSOCIATION
By: /S/ Xxxx X. Xxxxx
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Title: SVP
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By: /S/ Xxxxx Xxxxxx
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Title: VP
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THE HUNTINGTON NATIONAL BANK
By: /S/ Xxxx X. Xxxxxxxxxx
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Title: Vice President
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SOUTHTRUST BANK
By: /S/ Xxx X. Xxxxxxxx
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Title: Group Vice President
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