THIRD AMENDMENT
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THIRD AMENDMENT (this "Amendment"), dated as of September 16, 1996, among
SERVICE MERCHANDISE COMPANY, INC. (the "Borrower"), the various lending
institutions party to the Credit Agreement referred to below (the "Banks"), and
THE CHASE MANHATTAN BANK (as successor to CHEMICAL BANK), as Administrative
Agent (in such capacity, the "Administrative Agent"). All capitalized terms used
herein and not otherwise defined shall have the respective meanings provided
such terms in the Credit Agreement referred to below.
W I T N E S S E T H :
- - - - - - - - - -
WHEREAS, the Borrower, the Banks and the Administrative Agent are parties
to a Credit Agreement, dated as of June 8, 1994 and amended by the First
Amendment thereto dated as of April 13, 1995 and the Second Amendment thereto
dated May 23, 1996 (as so amended, the "Credit Agreement"); and
WHEREAS, the parties hereto wish to amend the Credit Agreement as herein
provided;
NOW, THEREFORE, it is agreed that as of the Third Amendment Effective Date
(as defined below):
1. Section 9.11(vi) of the Credit Agreement is hereby amended by adding the
following language to the end thereof (prior to the word "and"):
"and restrictions imposed by the terms of the First Union Permitted
Mortgage Financing on the First Union Permitted Mortgage Financing
Subsidiaries."
2. Section 9.15 of the Credit Agreement is hereby amended by inserting the
following proviso to the end of clause (b) thereof:
"; provided that the First Union Permitted Mortgage Financing Subsidiaries
shall not enter into the Guaranty."
3. Section 11.01 of the Credit Agreement is hereby amended by inserting in
the appropriate alphabetical order the following new definitions:
"First Union Permitted Mortgage Financing" shall mean the Permitted
Mortgage Financing provided by First Union National Bank of North Carolina
substantially in accordance with its commitment letter to the Borrower dated
September 9, 1996.
"First Union Permitted Mortgage Financing Subsidiaries" shall mean any
direct or indirect wholly-owned Subsidiary of the Borrower which is
wholly-owned, directly or indirectly by a Guarantor and which is created to be a
borrower under the First Union Permitted Mortgage Financing.
"Third Amendment Effective Date" shall mean the effective date of the Third
Amendment to this Agreement.
4. The definition of "Permitted Investments" in Section 11.01 of the Credit
Agreement is hereby amended by (x) inserting the words "and may transfer assets"
after the words "unsecured loans and advances" in clause (iv) thereof and (y) by
(a) deleting the word "and" at the end of clause (iv), (b) deleting the period
at the end of clause (v) and inserting in lieu thereof "; and" and (c) inserting
immediately thereafter the following new clause:
"(vi) the Borrower and/or its Subsidiaries may, all in connection with the
First Union Permitted Mortgage Financing and in a manner satisfactory to the
Administrative Agent, (x) transfer Real Property and related assets to the First
Union Permitted Mortgage Financing Subsidiaries and (y) provide security or
escrow deposits or Letters of Credit in lieu of security or escrow deposits,
guaranties, indemnities and similar items required by the terms of the First
Union Permitted Mortgage Financing, provided, that on the date of each closing
thereof, the aggregate proceeds of such financing net of the aforementioned
items are not less than 60% of the aggregate fair market value of the Real
Property and related assets being encumbered in connection therewith."
5. The definition of "Permitted Mortgage Financing" in Section 11.01 of the
Credit Agreement is hereby amended by (x) adding the words "and/or its
Subsidiaries" both after the words "incurred by the Borrower" and after the
words "owned or leased by the Borrower" appearing therein, and (y) deleting the
words "fair market value of the respective asset being sold", and substituting
in lieu thereof the words "aggregate fair market value of the assets being
encumbered."
6. Section 13.07(a) of the Credit Agreement is hereby amended by adding the
following language at the end thereof:
" To the extent that the Borrower or a Subsidiary thereof provides a
guaranty of the obligations of the Borrower or its Subsidiaries as tenants under
the Real Property operating leases contemplated by the First Union Permitted
Mortgage Financing, any Contingent Obligations represented by such guaranty
shall not be taken into account for purposes of calculations under this
Agreement involving the Indebtedness of the Borrower and its Subsidiaries."
7. In order to induce the undersigned Banks to enter into this Amendment,
the Borrower hereby represents and warrants that (x) no Default or Event of
Default exists on the Third Amendment Effective Date both before and after
giving effect to this Amendment and (y) all of the representations and
warranties contained in the Credit Agreement shall be true and correct in all
material respects as of the Third Amendment Effective Date both before and after
giving effect to this Amendment, with the same effect as though such
representations and warranties had been made on and as of the Third Amendment
Effective Date (it being understood that any representation or warranty made as
of a specified date shall be required to be true and correct in all material
respects only as of such specific date).
8. This Amendment is limited as specified and shall not constitute a
modification, acceptance or waiver of any other provision of the Credit
Agreement or any other Credit Document.
9. This Amendment may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, each of which counterparts
when executed and delivered shall be an original, but all of which shall
together constitute one and the same instrument. A complete set of counterparts
shall be lodged with the Borrower and the Administrative Agent.
10. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE
OF NEW YORK.
11. This Amendment shall become effective on the date (the "Third Amendment
Effective Date") when the Borrower and the Required Banks (i) shall have signed
a counterpart hereof (whether the same or different counterparts) and (ii) shall
have delivered (including by way of telecopier) the same to the Administrative
Agent at the Notice Office.
12. From and after the Third Amendment Effective Date all references in the
Credit Agreement and the other Credit Documents to the Credit Agreement shall be
deemed to be references to the Credit Agreement as modified hereby.
IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of
this Amendment to be duly executed and delivered as of the date first above
written.
Address:
7100 Service Merchandise Drive SERVICE MERCHANDISE COMPANY, INC.
Xxxxxxxxx, Xxxxxxxxx 00000
Attention: Xxxxxx X. Xxxxxxx, Xx.
Telephone: 000-000-0000
Telecopy: 000-000-0000 By: /s/ Xxxxxx X. Xxxxxxx, Xx.
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000 Xxxx Xxxxxx, 0xx Xxxxx THE CHASE MANHATTAN BANK
New York, New York 10017 Individually, and as Administrative Agent
Attention: Xxxxxxxxxxx X. Xxxxxxx
Telephone: 000-000-0000 By: /s/ Xxxxxxxxxxx X. Xxxxxxx
Telecopy: 212-270-6125 -----------------------------------
Title: Managing Director
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WITH A COPY TO:
Chase Securities, Inc.
00 Xxxxx XxXxxxx Xxxxxx
Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxx Xxxxx
Telephone: 000-000-0000
Telecopy: 000-000-0000
Xxx Xxxxxxx Xxxxx XXX XXXX XXXX X.X., XXXXXXX
Xxxxx 0000 AGENCY
Xxxxxxx, Xxxxxxx 00000-0000
Attention: Xxxxx Xxxxx
Telephone: 000-000-0000 By: /s/ Xxxxx Xxxxxx
Telecopy: 000-000-0000 -----------------------------------
Title: Group Vice President
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By: /s/ Xxxxxx X. Xxxxxxx
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Title: Vice President
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000 Xxxx Xxxxxx XXXX XXXXXXX CORPORATION
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxx Xxxxxx
Telephone: 000-000-0000 By: /s/ Xxxxxx Xxxxxx
Telecopy: 000-000-0000 -----------------------------------
Title: Vice President
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000 Xxxxxxx Xxxxxx THE FIRST NATIONAL BANK OF BOSTON
Xxxxxx, Xxxxxxxxxxxxx 00000
Attention: Xxxxx Xxxxxxxx
Telephone: 000-000-0000 By: /s/
Telecopy: 000-000-0000 -----------------------------------
Title: Managing Director
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000 Xxxx Xxxxxx THE BANK OF MONTREAL
New York, New York 00000
Attention: Xxx Xxxxxx
Telephone: 000-000-0000 By: /s/ W. Xxx Xxxxxx
Telecopy: 000-000-0000 -----------------------------------
Title: Director
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One Wall Street, 22nd Floor THE BANK OF NEW YORK
New York, New York 10286
Attention: Xxxxx Xxxxxxxx
Telephone: 000-000-0000 By: /s/ Xxxxx Xxxxxxxx
Telecopy: 000-000-0000 -----------------------------------
Title: Vice President
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Structured Finance Department THE BANK OF TOKYO-MITSUBISHI, LTD.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxx X. Xxxxxxx By: /s/ Xxxx X. Xxxxxxx
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Title: Vice President
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Structured Finance Department THE BANK OF TOKYO-MITSUBISHI, TRUST
1251 Avenue of the Americas COMPANY
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxx X. Xxxxxxx
By: /s/ Xxxx X. Xxxxxxx
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Title: Vice President
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000 Xxxxxxx Xxxxxx BANQUE PARIBAS
New York, New York 10019
Attention: Xxx Xxxxx
Telephone: 000-000-0000 By: /s/ Xxx X. Xxxxx
Telecopy: 000-000-0000 -----------------------------------
Title: Vice President
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By: /s/ Xxxx X. Xxxxxxxx
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Title: Vice President
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Two Paces West CANADIAN IMPERIAL BANK OF
0000 Xxxxx Xxxxx Xxxx XXXXXXXX
Xxxxxxx, Xxxxxxx 00000
Attention: Xxxxxxx X. Xxx
Telephone: 000-000-0000 By: /s/ Xxxxxxx X. Xxx
Telecopy: 000-000-0000 -----------------------------------
Title: Authorized Signatory
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00 Xxxx Xxxxxx DRESDNER BANK AG, NEW YORK
Xxx Xxxx, Xxx Xxxx 00000 BRANCH
Attention: Xxxxxxx Xxxxxx
Telephone: 000-000-0000 By: /s/ Xxxxxxx Xxxxxx
Telecopy: 212-574-0129 -----------------------------------
Title: Vice President
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By: /s/
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Title: Vice President
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Marquis One Tower, Suite 2100 THE FUJI BANK, LTD.
000 Xxxxxxxxx Xxxxxx Xxxxxx XX
Xxxxxxx, Xxxxxxx 00000-0000
Attention: Xxxxx Xxxxxxx
Telephone: 000-000-0000 By: /s/ Toshibiro Mitsui
Telecopy: 000-000-0000 -----------------------------------
Title: Vice President and Manager
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Two World Trade Center, 99th Floor THE HOKKAIDO TAKUSHOKU BANK, LTD.
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx X. Xxxxxxx
Telephone: 000-000-0000 By: /s/
Telecopy: 000-000-0000 -----------------------------------
Title: Senior Vice President and Manager
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000 Xxxx Xxxxxx THE INDUSTRIAL BANK OF JAPAN,
Xxx Xxxx, Xxx Xxxx 00000 LIMITED -NEW YORK BRANCH
Attention: Xxx Xxxxx
Telephone: 000-000-0000 By: /s/
Telecopy: 000-000-0000 -----------------------------------
Title: Senior Vice President and
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Senior Manager
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000 Xxxxxxxxx Xxxxxx Xxxxxx XX LTCB TRUST COMPANY
Xxxxx 0000
Xxxxxxx, Xxxxxxx 00000
Attention: Xxxxx Xxxxxx
Telephone: 000-000-0000 By: /s/ Xxxxxx Xxxxxx
Telecopy: 000-000-0000 -----------------------------------
Title: Executive Vice President
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000 Xxxxxxxx XXXXXXX XXXX XXX
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx Xxxx
Telephone: 000-000-0000 By: /s/ Xxxxx Xxxx
Telecopy: 000-000-0000 -----------------------------------
Title: Director
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000 Xxxx Xxxxxxxxx Xxxxxx XXX XXXX, XXXXXXXX, INC.
Xxxxxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx Xxxxxxxx
Telephone: 000-000-0000 By: /s/ Xxxxx X. Xxxxxxxx
Telecopy: 000-000-0000 -----------------------------------
Title: Vice President
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000 Xxxxxxx Xxxxxx, 00xx Floor THE MITSUBISHI TRUST AND
Xxx Xxxx, Xxx Xxxx 00000 BANKING CORPORATION
Attention: Xxxxx XxXxxxx
Telephone: 000-000-0000
Telecopy: 212-755-2349 By: /s/
212-486-0970 -----------------------------------
Title: Senior Vice President
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Xxx XxxxxxxXxxx Xxxxx X-0 XXXXXXXXXXX, N.A. f/k/a
000 Xxxxx Xxxxxx NATIONSBANK OF NORTH CAROLINA,
Nashville, Tennessee 37239-1697 N.A.
Attention: Xxxxxxxx Xxxxx
Telephone: 000-000-0000
Telecopy: 000-000-0000 By: /s/
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Title: Vice President
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000 Xxxx Xxxxxx, 00xx Xxxxx THE NIPPON CREDIT BANK, LTD.
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx Xxxx
Telephone: 000-000-0000 By: /s/ Xxxxx Xxxx
Telecopy: 000-000-0000 -----------------------------------
Title: Assistant Vice President
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Marquis One Tower, Suite 2703 THE SAKURA BANK, LIMITED
000 Xxxxxxxxx Xxxxxx Xxxxxx XX
Xxxxxxx, Xxxxxxx 00000
Attention: Xxxx Xxxxxxxxx
Telephone: 000-000-0000 By: /s/ Xxxxxxxx Xxxxxxxx
Telecopy: 000-000-0000 -----------------------------------
Title: Vice President and Senior Manager
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Georgia Pacific Center, Suite 3210 THE SUMITOMO BANK, LIMITED,
000 Xxxxxxxxx Xxxxxx XX XXXXXXX AGENCY
Xxxxxxx, Xxxxxxx 00000
Attention: Xxx Xxxxxx
Telephone: 000-000-0000 By: /s/ Xxxxxxxx Xxxxxxxxx
Telecopy: 000-000-0000 -----------------------------------
Title: Joint General Manager
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00 Xxxx 00xx Xxxxxx XXX XXXXX XXXX, LTD. XXX XXXX
Xxx Xxxx, Xxx Xxxx 00000 BRANCH
Attention: Xxxx Xxxxxxxxx
Telephone: 000-000-0000 By: /s/
Telecopy: 000-000-0000 -----------------------------------
Title: Senior Vice President
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One Detroit Center, 9th Floor COMERCIA BANK
000 Xxxxxxxx Xxxxxx, XX 0000
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxxxx X. Xxxxxxxx
Telephone: 000-000-0000 By: /s/ Xxxx X. Xxxxx
Telecopy: 313-222-3330 -----------------------------------
Title: Vice President
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000 Xxxxx Xxxxxx XXXX XX XXXXXXX, XXXXXX XXXXXX
Xxx Xxxx, Xxx Xxxx 00000 BRANCH
Attention: Xxxx Xxxxxx
Telephone: 000-000-0000 By: /s/ Xxxx Xxxxxx
Telecopy: 000-000-0000 -----------------------------------
Title: Assistant Vice President
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1211 Avenue of the Americas WESTDEUTSCHE LANDESBANK
New York, New York 10036 GIROZENTRALE, NEW YORK AND
Attention: Xxxxx X. Xxxxxxx CAYMAN ISLAND BRANCHES
Telephone: 000-000-0000
Telecopy: 212-852-6300 By: /s/
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Title: Vice President
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By: /s/
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Title: Associate
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One Parkview Plaza XXX XXXXXX AMERICAN CAPITAL
Xxxxxxxx Xxxxxxx, Xxxxxxxx 00000 PRIME RATE INCOME TRUST
Attention: Xxxxxxx X. Xxxxxxx
Telephone: 000-000-0000 By: /s/ Xxxxxxx X. Xxxxxxx
Telecopy: 000-000-0000 -----------------------------------
Title: Senior Vice President and Director
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000 Xxxxx Xxxxxx, Xxxxx 000 THE YASUDA TRUST AND BANKING
Xxx Xxxx, Xxx Xxxx 00000 COMPANY, LTD.
Attention: Xxxxxx Xxxxxx
Telephone: 000-000-0000 By: /s/ Xxxxxx Xxxxxx
Telecopy: 000-000-0000 -----------------------------------
Title: Deputy General Manager
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