FOURTH AMENDMENT AND WAIVER TO CREDIT AGREEMENT
EXHIBIT 10.1
FOURTH AMENDMENT AND WAIVER TO CREDIT AGREEMENT
THIS FOURTH AMENDMENT AND WAIVER TO CREDIT AGREEMENT (this “Agreement”) is entered into to be
effective as of November 28, 2005, by and among HOME INTERIORS & GIFTS, INC., a Texas corporation
(“Borrower”), each lender party to the Credit Agreement (collectively, “Lenders” and individually,
a “Lender”), and JPMORGAN CHASE BANK, N.A. (formerly known as JPMorgan Chase Bank), as
Administrative Agent (in such capacity, “Administrative Agent”).
R E C I T A L S
A. Reference is hereby made to that certain Credit Agreement dated as of March 31, 2004,
executed by Borrower, Administrative Agent, and Lenders (as amended, the “Credit Agreement”).
B. Capitalized terms used herein shall, unless otherwise indicated, have the respective
meanings set forth in the Credit Agreement.
C. Borrower and Lenders desire to waive and modify certain provisions contained in the Credit
Agreement, subject to the terms and conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:
1. Waiver. Lenders hereby waive during the period from and including June 30, 2005 to but
excluding December 15, 2005, compliance by Borrower with the Consolidated Leverage Ratio set forth
in Section 7.1(a) of the Credit Agreement and the Consolidated Interest Coverage Ratio set forth in
Section 7.1(b) of the Credit Agreement, in each case for the period ending on each of June 30, 2005
and September 30, 2005 (it being understood that such waiver shall expire on December 15, 2005 such
that any Default or Event of Default that would have occurred during the period from and including
June 30, 2005 to but excluding December 15, 2005 (without giving effect to any waiver by Lenders
of such Default or Event of Default) shall be deemed to have occurred on December 15, 2005 and
shall be continuing thereafter).
2. Amendments to the Credit Agreement.
(a) Section 1.1 of the Credit Agreement is hereby amended to add the following definitions in
its appropriate alphabetical order:
“Fourth Amendment”: the Fourth Amendment and Waiver to Credit Agreement, dated as of
November 28, 2005, to and under this Agreement.
“Fourth Amendment Effective Date”: the date on which the conditions to the
effectiveness of the Fourth Amendment shall have been satisfied, which date is November 28,
2005.
(b) Section 1.1 of the Credit Agreement is hereby amended to delete the definition of “Waiver
Period” in its entirety and replace such definition with the following:
“Waiver Period”: the period from and including September 29, 2005 to but excluding
December 15, 2005.”
Fourth Amendment and Waiver to Credit Agreement
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(c) Section 4.2 of the Credit Agreement is hereby amended by adding the following proviso at
the end of such Section immediately before the period therein:
“; provided, however, that during the Waiver Period, the foregoing representation as to
a material adverse effect on the business, property, operations or condition (financial or
otherwise) of the Group Members taken as a whole shall be made since September 30, 2005”.
(d) Section 10.5 of the Credit Agreement is hereby amended by adding the following additional
paragraph at the end thereof:
“Notwithstanding the foregoing, on and after the Fourth Amendment Effective Date, all
fees and expenses incurred (i) by any consultant or any similar agent or advisor of the
Administrative Agent or any Lender or (ii) in connection with the any inspections permitted
under Section 6.6 shall first be submitted to, and approved by, the Required
Lenders, in their sole discretion, before being subject to the reimbursements rights of such
Person under this Section 10.5.”
3. Amendments to Credit Agreement and Other Loan Documents.
(a) All references in the Loan Documents to the Credit Agreement shall henceforth include
references to the Credit Agreement as modified and amended by this Agreement, and as may, from time
to time, be further modified, amended, restated, extended, renewed, and/or increased.
(b) Any and all of the terms and provisions of the Loan Documents are hereby amended and
modified wherever necessary, even though not specifically addressed herein, so as to conform to the
amendments and modifications set forth herein.
4. Representations. Each Loan Party that is a party hereto represents and warrants to Lenders
that as of the date of this Agreement: (a) this Agreement has been duly authorized, executed, and
delivered by each such Loan Party; (b) no action of, or filing with, any Governmental Authority is
required to authorize, or is otherwise required in connection with, the execution, delivery, and
performance by each such Loan Party of this Agreement; (c) the Loan Documents, as amended by this
Agreement, are valid and binding upon each Loan Party that is a party thereto and are enforceable
against each Loan Party in accordance with their respective terms, (except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally and general principles of equity (whether
enforcement is sought by proceedings in equity or law)); (d) the execution, delivery, and
performance by each Loan Party that is a party hereto of this Agreement do not require the consent
of any other Person and do not and will not constitute a violation of any Laws, order of any
Governmental Authority, or material agreements to which any such Loan Party that is a party or by
which any such Loan Party is bound; (e) all representations and warranties in the Loan Documents
are true and correct in all material respects on and as of the date of this Agreement (after giving
effect hereto), except to the extent that (i) any of them speak to a different specific date, or
(ii) the facts on which any of them were based have been changed by transactions contemplated or
permitted by the Credit Agreement; and (f) after giving effect to this Agreement, no Default or
Event of Default exists.
5. Conditions. This Agreement shall not be effective unless and until this Agreement is
executed by the Borrower and the Required Lenders and the Ratification attached hereto and made a
part of this Agreement is executed by each other Loan Party.
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6. Continued Effect. Except to the extent amended or waived hereby, all terms, provisions,
and conditions of the Credit Agreement and the other Loan Documents, and all documents executed in
connection therewith, shall continue in full force and effect and shall remain enforceable and
binding in accordance with their respective terms. Borrower acknowledges and agrees that nothing in
this Amendment shall, except as expressly provided herein, operate as a waiver of any right, power
or remedy of any Lender or Administrative Agent under any of the Loan Documents or constitute an
indication of the Lenders’ willingness to consent to any other amendment or waiver of any other
provision of the Credit Agreement or a waiver of compliance with any such provision not referenced
in Section 1 of this Amendment or for any other time period.
7. Miscellaneous. Unless stated otherwise (a) the singular number includes the plural and
vice versa and words of any gender include each other gender, in each case, as appropriate, (b)
headings and captions may not be construed in interpreting provisions, (c) this Agreement shall be
construed — and its performance enforced — under New York law, (d) if any part of this Agreement
is for any reason found to be unenforceable, all other portions of it nevertheless remain
enforceable, (e) this Agreement may be executed in any number of counterparts with the same effect
as if all signatories had signed the same document, and all of those counterparts must be construed
together to constitute the same document, and (f) delivery of an executed counterpart signature
page of this Agreement or the Ratification attached hereto by facsimile is as effective as
executing and delivering this Agreement in the presence of the other parties to this Agreement.
8. Parties. This Agreement binds and inures to the benefit of Borrower, the other Loan
Parties, the Administrative Agent and each Lender and their respective successors and permitted
assigns.
9. Entireties. The Credit Agreement and the other Loan Documents, as amended by this
Agreement, represent the final agreement between the parties about the subject matter of the Credit
Agreement and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral
agreements of the parties. There are no unwritten oral agreements between the parties.
[Remainder of Page Intentionally Left Blank; Signature Pages to Follow.]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the
date first above written.
| JPMORGAN CHASE BANK, N.A., as Administrative Agent | ||||||||
| By: | ||||||||
| Name: | ||||||||
| Title: | ||||||||
Fourth Amendment and Waiver to Credit Agreement
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the
date first above written.
| , as a Lender |
||||||||
| By: | ||||||||
| Name: | ||||||||
| Title: | ||||||||
Fourth Amendment and Waiver to Credit Agreement
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.
| HOME INTERIORS & GIFTS, INC., a Texas corporation | ||||||||
| By: | ||||||||
| Name: | ||||||||
| Title: | ||||||||
Fourth Amendment and Waiver to Credit Agreement
RATIFICATION
Each of the undersigned, in its capacity as a Guarantor under the Guarantee and Collateral
Agreement, does hereby (a) consent, acknowledge and agree to the transactions described in the
foregoing Fourth Amendment and Waiver and (b) after giving effect to such Amendment and Waiver, (i)
confirms, reaffirms and restates the representations and warranties made by it in each Loan
Document to which it is a party, (ii) ratifies and confirms each Security Document to which it is a
party and (iii) confirms and agrees that each such Security Document is, and shall continue to be,
in full force and effect, with the Collateral described therein securing, and continuing to secure,
the payment of all obligations of the undersigned referred to therein; provided that each reference
to the Credit Agreement therein and in each of the other Loan Documents shall be deemed to be a
reference to the Credit Agreement after giving effect to such Fourth Amendment and Waiver.
| DWC GP, INC. | ||||||||
| HOME INTERIORS DE PUERTO RICO, INC. | ||||||||
| SPRING VALLEY SCENTS, INC. | ||||||||
| XX XXXXX, INC. | ||||||||
| HOMCO, INC. | ||||||||
| GIA, INC. | ||||||||
| By: | ||||||||
| Name: | ||||||||
| Title: | ||||||||
| DOMISTYLE, INC. | ||||||||
| By: | ||||||||
| Name: | ||||||||
| Title: | ||||||||
| HIG INVESTMENTS, INC. | ||||||||
| By: | ||||||||
| Name: | ||||||||
| Title: | ||||||||
| DALLAS WOODCRAFT COMPANY, LP. | ||||||||||
| By: DWC GP, INC., its general partner | ||||||||||
| By: | ||||||||||
| Name: | ||||||||||
| Title: | ||||||||||
| LAREDO CANDLE COMPANY, LP. | ||||||||||
| By: SPRING VALLEY SCENTS, INC., its general partner | ||||||||||
| By: | ||||||||||
| Name: | ||||||||||
| Title: | ||||||||||
Fourth Amendment and Waiver to Credit Agreement
