THIRD AMENDMENT
---------------
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.
Brentwood, Tennessee 37027
Attention: Thomas L. Garrett, Jr.
Telephone: 615-660-6000
Telecopy: 615-660-3667 By: /s/ Thomas L. Garrett, Jr.
-----------------------------------
270 Park Avenue, 9th Floor THE CHASE MANHATTAN BANK
New York, New York 10017 Individually, and as Administrative Agent
Attention: Christopher C. Wardell
Telephone: 212-270-2053 By: /s/ Christopher C. Wardell
Telecopy: 212-270-6125 -----------------------------------
Title: Managing Director
-----------------------------------
WITH A COPY TO:
Chase Securities, Inc.
10 South LaSalle Street
Suite 2300
Chicago, Illinois 60603
Attention: Paul Doran
Telephone: 313-807-4089
Telecopy: 312-346-9310
One Ravinia Drive ABN AMRO BANK N.V., ATLANTA
Suite 1200 AGENCY
Atlanta, Georgia 30346-2103
Attention: Linda Davis
Telephone: 404-399-7378 By: /s/ Larry Kelley
Telecopy: 404-395-9188 -----------------------------------
Title: Group Vice President
-----------------------------------
By: /s/ Steven L. Hipsman
-----------------------------------
Title: Vice President
-----------------------------------
245 Park Avenue ARAB BANKING CORPORATION
New York, New York 10167
Attention: Louise Bilbro
Telephone: 212-850-0665 By: /s/ Louise Bilbro
Telecopy: 212-599-8385 -----------------------------------
Title: Vice President
-----------------------------------
100 Federal Street THE FIRST NATIONAL BANK OF BOSTON
Boston, Massachusetts 02110
Attention: Peter Griswold
Telephone: 617-434-8312 By: /s/
Telecopy: 617-434-6685 -----------------------------------
Title: Managing Director
-----------------------------------
430 Park Avenue THE BANK OF MONTREAL
New York, New York 10022
Attention: Tom Calder
Telephone: 212-605-1460 By: /s/ W. Tom Calder
Telecopy: 212-605-1455 -----------------------------------
Title: Director
-----------------------------------
One Wall Street, 22nd Floor THE BANK OF NEW YORK
New York, New York 10286
Attention: Paula Diponzio
Telephone: 212-635-7867 By: /s/ Paula Diponzio
Telecopy: 212-635-1483 -----------------------------------
Title: Vice President
-----------------------------------
Structured Finance Department THE BANK OF TOKYO-MITSUBISHI, LTD.
1251 Avenue of the Americas
New York, New York 10022
Attention: Paul P. Malecki By: /s/ Paul P. Malecki
-----------------------------------
Title: Vice President
-----------------------------------
Structured Finance Department THE BANK OF TOKYO-MITSUBISHI, TRUST
1251 Avenue of the Americas COMPANY
New York, New York 10022
Attention: Paul P. Malecki
By: /s/ Paul P. Malecki
-----------------------------------
Title: Vice President
-----------------------------------
787 Seventh Avenue BANQUE PARIBAS
New York, New York 10019
Attention: Ann Pifer
Telephone: 212-841-2383 By: /s/ Ann C. Pifer
Telecopy: 212-841-2333 -----------------------------------
Title: Vice President
-----------------------------------
By: /s/ Mary T. Finnegan
-----------------------------------
Title: Vice President
-----------------------------------
Two Paces West CANADIAN IMPERIAL BANK OF
2727 Paces Ferry Road COMMERCE
Atlanta, Georgia 30339
Attention: Kathryn W. Sax
Telephone: 770-319-4903 By: /s/ Kathryn W. Sax
Telecopy: 770-319-4954 -----------------------------------
Title: Authorized Signatory
-----------------------------------
75 Wall Street DRESDNER BANK AG, NEW YORK
New York, New York 10005 BRANCH
Attention: Richard Conroy
Telephone: 212-429-2206 By: /s/ Richard Conroy
Telecopy: 212-574-0129 -----------------------------------
Title: Vice President
-----------------------------------
By: /s/
-----------------------------------
Title: Vice President
-----------------------------------
Marquis One Tower, Suite 2100 THE FUJI BANK, LTD.
245 Peachtree Center Avenue NE
Atlanta, Georgia 30303-1208
Attention: Brett Johnson
Telephone: 404-653-2100 By: /s/ Toshibiro Mitsui
Telecopy: 404-653-2119 -----------------------------------
Title: Vice President and Manager
-----------------------------------
Two World Trade Center, 99th Floor THE HOKKAIDO TAKUSHOKU BANK, LTD.
New York, New York 10048
Attention: Scott D. Winston
Telephone: 212-912-6914 By: /s/
Telecopy: 212-466-6079 -----------------------------------
Title: Senior Vice President and Manager
-----------------------------------
245 Park Avenue THE INDUSTRIAL BANK OF JAPAN,
New York, New York 10167 LIMITED -NEW YORK BRANCH
Attention: Jim Welch
Telephone: 212-309-6577 By: /s/
Telecopy: 212-682-2870 -----------------------------------
Title: Senior Vice President and
-----------------------------------
Senior Manager
-----------------------------------
245 Peachtree Center Avenue NE LTCB TRUST COMPANY
Suite 2801
Atlanta, Georgia 30303
Attention: Becky Sedler
Telephone: 404-659-7210 By: /s/ Satoru Otsubo
Telecopy: 404-658-9751 -----------------------------------
Title: Executive Vice President
-----------------------------------
140 Broadway MIDLAND BANK PLC
New York, New York 10005
Attention: Karen Wold
Telephone: 212-658-2750 By: /s/ Karen Wold
Telecopy: 212-658-2586 -----------------------------------
Title: Director
-----------------------------------
500 West Jefferson Street PNC BANK, KENTUCKY, INC.
Louisville, Kentucky 40202
Attention: Ralph Phillips
Telephone: 502-581-4543 By: /s/ Ralph A. Phillips
Telecopy: 502-581-2302 -----------------------------------
Title: Vice President
-----------------------------------
520 Madison Avenue, 25th Floor THE MITSUBISHI TRUST AND
New York, New York 10022 BANKING CORPORATION
Attention: Susan LeFevre
Telephone: 212-891-8454
Telecopy: 212-755-2349 By: /s/
212-486-0970 -----------------------------------
Title: Senior Vice President
-----------------------------------
One NationsBank Plaza M-5 NATIONSBANK, N.A. f/k/a
311 Union Street NATIONSBANK OF NORTH CAROLINA,
Nashville, Tennessee 37239-1697 N.A.
Attention: Kimberly Dupuy
Telephone: 615-749-3174
Telecopy: 615-749-4640 By: /s/
-----------------------------------
Title: Vice President
-----------------------------------
245 Park Avenue, 30th Floor THE NIPPON CREDIT BANK, LTD.
New York, New York 10167
Attention: Barry Fein
Telephone: 212-984-1261 By: /s/ Barry Fein
Telecopy: 212-490-3895 -----------------------------------
Title: Assistant Vice President
-----------------------------------
Marquis One Tower, Suite 2703 THE SAKURA BANK, LIMITED
245 Peachtree Center Avenue NE
Atlanta, Georgia 30303
Attention: Chad Zimmerman
Telephone: 404-521-3111 By: /s/ Hiroyasu Imanishi
Telecopy: 404-521-1133 -----------------------------------
Title: Vice President and Senior Manager
-----------------------------------
Georgia Pacific Center, Suite 3210 THE SUMITOMO BANK, LIMITED,
133 Peachtree Street NE ATLANTA AGENCY
Atlanta, Georgia 30303
Attention: Tom Lawson
Telephone: 404-526-8513 By: /s/ Masayuki Fukushima
Telecopy: 404-521-1187 -----------------------------------
Title: Joint General Manager
-----------------------------------
55 East 52nd Street THE TOKAI BANK, LTD. NEW YORK
New York, New York 10055 BRANCH
Attention: Bill Struckell
Telephone: 212-339-1123 By: /s/
Telecopy: 212-754-2170 -----------------------------------
Title: Senior Vice President
-----------------------------------
One Detroit Center, 9th Floor COMERCIA BANK
500 Woodward Avenue, MC 3281
Detroit, Michigan 48226
Attention: Kristine L. Andersen
Telephone: 313-222-3648 By: /s/ John M. Costa
Telecopy: 313-222-3330 -----------------------------------
Title: Vice President
-----------------------------------
650 Fifth Avenue BANK OF IRELAND, CAYMAN ISLAND
New York, New York 10019 BRANCH
Attention: John Cusack
Telephone: 212-397-1712 By: /s/ John Cusack
Telecopy: 212-586-7752 -----------------------------------
Title: Assistant Vice President
-----------------------------------
1211 Avenue of the Americas WESTDEUTSCHE LANDESBANK
New York, New York 10036 GIROZENTRALE, NEW YORK AND
Attention: Karen E. Hoplock CAYMAN ISLAND BRANCHES
Telephone: 212-852-6000
Telecopy: 212-852-6300 By: /s/
-----------------------------------
Title: Vice President
-----------------------------------
By: /s/
-----------------------------------
Title: Associate
-----------------------------------
One Parkview Plaza VAN KAMPEN AMERICAN CAPITAL
Oakbrook Terrace, Illinois 60181 PRIME RATE INCOME TRUST
Attention: Jeffrey W. Maillet
Telephone: 630-684-6438 By: /s/ Jeffrey W. Maillet
Telecopy: 630-684-6740 -----------------------------------
Title: Senior Vice President and Director
-----------------------------------
666 Fifth Avenue, Suite 800 THE YASUDA TRUST AND BANKING
New York, New York 10103 COMPANY, LTD.
Attention: Makoto Tagawa
Telephone: 212-373-5709 By: /s/ Makoto Tagawa
Telecopy: 212-373-5796 -----------------------------------
Title: Deputy General Manager
-----------------------------------