AMENDMENT TO CREDIT AGREEMENT AND SECURITY AGREEMENT
THIS AMENDMENT is entered into as of June 30, 1996 by and between
FUNCO, INC., a Minnesota corporation (the "Borrower"), and MARQUETTE CAPITAL
BANK (the "Bank"). In consideration of the mutual agreements set forth herein,
and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by the parties, the Borrower and the Bank agree as
follows:
1. The Credit Agreement dated June 20, 1995, by and between the
Borrower and the Bank, as amended by an Amendment to Credit Agreement dated
February 5, 1996 (the "Credit Agreement"), is amended as follows:
a. The definition of Advance in Section 1.01 of the Credit Agreement
is amended to read as follows:
"Advance" means an advance of credit by the Bank to the Borrower in
the form of a loan pursuant to Section 2.01 and the aggregate
outstanding amount of the Letters of Credit.
b. The following definition is added to Section 1.01 of the Credit
Agreement:
"Letters of Credit" means all letters of credit issued by the Bank
at the Borrower's request under the Line of Credit.
c. Section 2.01 of the Credit Agreement is amended to read as
follows:
Section 2.01 Advances. Subject to the provisions of this
Agreement, the Bank shall make Advances to the Borrower from time to
time during the period from the date hereof to June 30, 1997, or the
earlier date of termination of the Line of Credit pursuant to
Section 6.02, in an aggregate amount not exceeding at any time
outstanding $10,000,000.00 during the period from September 15, 1996
through December 15, 1996, and in an aggregate amount not exceeding
at any time outstanding $3,000,000.00 at all other times (the "Line
of Credit"). Each Advance shall be in the amount of $10,000.00 or an
integral multiple thereof. Within the limits of the Line of Credit,
the Borrower may borrow, prepay, and reborrow under this Section
2.01. During the period from January 1, 1997 through March 31, 1997
the Borrower shall cause the aggregate outstanding amount of
Advances to be zero for 45 consecutive days. The Borrower shall not
at any time, during the period from September 15, 1996 through
December 15, 1996, permit the aggregate outstanding amount of
Advances to exceed the Borrowing Base.
d. Section 2.03 of the Credit Agreement is amended to read as
follows:
Section 2.03 Revolving Note. The obligation to repay the
Advances and to pay interest and other charges, fees and expenses
thereon is evidenced by the Borrower's $10,000,000.00 Amended and
Restated Promissory Note dated June 30, 1996 in favor of the Bank
(together with any amendments, extensions, renewals and replacements
thereof, called the "Revolving Note").
e. Section 2.06 of the Credit Agreement is amended to read as
follows:
Section 2.06 Commitment Fee. The Borrower shall pay to
the Bank a commitment fee at the rate of 1/4 of 1 % per annum on the
average daily unused amount of the Line of Credit from the date
hereof and including the termination date of the Line of Credit,
computed on the basis of the actual number of days elapsed and a
360-day year. The amount of such commitment fee accruing during each
calendar quarter shall be due and payable on or before the 10th day
of the next succeeding calendar quarter, provided that the
commitment fee remaining unpaid shall be due and payable on the
termination date of the Line of Credit.
f. The following Section 2.08 is added to Article II of the Credit
Agreement:
Section 2.03 Letters of Credit. The total amount of all
Letters of Credit shall not exceed $1,000,000.00 at any time
outstanding. No Letter of Credit shall expire after June 30, 1997.
Notwithstanding any agreement to the contrary, the Bank shall have
no obligation to issue any Letter of Credit, or to amend, extend,
renew or replace any Letter of Credit, unless the same is in form
and substance acceptable to the Bank. Prior to the issuance,
amendment, extension, renewal or replacement of any Letter of
Credit, the Borrower shall execute and deliver to the Bank such
applications and agreements for the same as the Bank may request,
shall pay to the Bank a letter of credit fee and an administrative
fee in amounts to be determined by the Bank, and shall comply with
such other requirements as the Bank, in its sole discretion, may
request in connection with the same. The Borrower shall pay to the
Bank all amounts paid by the Bank under each Letter of Credit
immediately upon such payment by the Bank, and the Bank is
irrevocably authorized to receive any such payment, without demand
or notice of any kind, by making a loan Advance. In addition, in the
event that any Letters of Credit remain outstanding on June 30, 1997
or at any time after the occurrence of an Event of Default, the Bank
is irrevocably authorized to make one or more loan Advances in an
amount equal to the aggregate outstanding amount of such Letters of
Credit, and the Bank shall retain the full amount of such Advances
as security, and the Borrower grants the Bank a first lien and
security interest in all such funds, including without limitation
all instruments evidencing such funds, and all products and proceeds
of the foregoing, as security for all now existing and hereafter
arising debts, obligations and liabilities of the Borrower to the
Bank.
g. Section 5.01(a) of the Credit Agreement is amended to read as
follows:
(a) As soon as available, and in any event within 90
days after the end of each fiscal year of the Borrower, a copy of
the annual audit report and management letter of the Borrower with
the unqualified opinion of independent certified public accountants
selected by the Borrower and acceptable to the Bank, which report
shall include the consolidated and consolidating balance sheets of
the Borrower and the Subsidiaries as of the end of such fiscal year,
and the related consolidated and consolidating statements of income,
cash flow, and stockholders' equity of the Borrower and the
Subsidiaries for such fiscal year, including all appropriate
supporting schedules and notes, all in reasonable detail, certified
by such accountants to have been prepared in accordance with GAAP.
h. Section 5.01(c) of the Credit Agreement is amended to read as
follows:
(c) As soon as available and in any event within 35 days
after the end of each month: (i) the consolidated and consolidating
balance sheets of the Borrower and the Subsidiaries and the summary
inventory report of the Borrower as of the end of such month and the
related consolidated and consolidating statements of income and cash
flow of the Borrower and the Subsidiaries for such month and for the
year to date, all in reasonable detail, prepared and certified by
the chief financial officer of the Borrower to have been prepared in
accordance with GAAP, subject, however, to year-end audit
adjustments, and (ii) a Covenant Compliance Certificate completed
with amounts as of the end of such month and executed by the chief
financial officer of the Borrower.
i. Section 5.01(d) of the Credit Agreement is amended to read as
follows:
(d) As soon as available and in any event within 14 days
after the end of each of the following applicable dates, a Borrowing
Base Certificate completed with amounts as of the close of business
on August 25, 1996, September 15, 1996, September 29, 1996, October
13, 1996, October 27, 1996, and November 10, 1996, and November 24,
1996, executed by the chief financial officer of the Borrower.
j. Section 5.15 of the Credit Agreement is amended to read as
follows:
Section 5.15 Capital Expenditures. The Borrower shall
not, and shall not permit any Subsidiary to, make any Capital
Expenditure if, after giving effect to such Capital Expenditure, the
aggregate amount of Capital Expenditures made by the Borrower and
the Subsidiaries in any fiscal year of the Borrower will exceed
$2,000,000.00.
k. Section 5.16 of the Credit Agreement is amended to read as
follows:
Section 5.16 Consolidated Tangible Net Worth. The
Borrower shall not at any time permit the Consolidated Tangible Net
Worth of the Borrower and the Subsidiaries to be less than (a)
$18,000,000.00 as of the close of business on March 30, 1997, and
(b) $15,300,000.00 at any other time.
1. Section 5.17 of the Credit Agreement is amended to read as
follows:
Section 5.17 Consolidated Current Ratio. The Borrower
shall not at any time permit the ratio of Consolidated Current
Assets to Consolidated Current Liabilities of the Borrower and the
Subsidiaries to be less than: (a) 2.00 to 1 as of the close of
business on March 30, 1997; and (b) 1.25 to 1 during the period from
August 26, 1996 through November 24, 1996; and (c) 1.50 to 1 at any
other time.
m. Section 5.18 of the Credit Agreement is amended to read as
follows:
Section 5.18 Consolidated EBITDA. The Borrower shall not
at any time permit the consolidated earnings before interest, taxes,
depreciation and amortization expense of the Borrower and the
Subsidiaries in any period of 12 consecutive fiscal months of the
Borrower designated below to be less than the amount set forth below
for such period:
12-Fiscal Month Period Ending: Minimum Amount
------------------------------ --------------
March 30, 1997 $ 4,000,000.00
Any other date $ 3,500,000.00
n. Section 6.02 of the Credit Agreement is amended to read as
follows:
Section 6.02 Rights and Remedies. Upon the occurrence of
an Event of Default or at any time thereafter until such Event of
Default is cured to the written satisfaction of the Bank, the Bank
may exercise any and all of the following rights and remedies:
(a) The Bank may, by notice to the Borrower, declare the
Line of Credit to be terminated, whereupon the same shall terminate.
(b) The Bank may declare all principal, interest and
other charges, fees and expenses under the Revolving Note and this
Agreement to be immediately due and payable in full, whereupon the
same shall become immediately due and payable in full, without
presentment, demand, protest or other notice of any kind, all of
which are hereby expressly waived by the Borrower.
(c) The Bank may, without notice to the Borrower or any
other person, apply any and all money owing by the Bank to the
Borrower to the payment of principal, interest and other charges,
fees and expenses under the Revolving Note and this Agreement.
(d) The Bank may exercise and enforce its rights and
remedies under the Security Agreement, the other writings
contemplated hereby, the Uniform Commercial Code and any other
applicable law.
In addition, at the Bank's option upon the occurrence of an Event of
Default, the Borrower shall pay to the Bank a sum equal to the then
outstanding amount of the Letters of Credit, without presentment,
demand, protest or other notice of any kind, all of which are hereby
expressly waived by the Borrower. The Borrower grants the Bank a
first lien and security interest in all such funds paid to the Bank,
including without limitation all instruments evidencing such funds,
and all products and proceeds of the foregoing, as security for all
now existing and hereafter arising debts, obligations and
liabilities of the Borrower to the Bank.
O. Exhibit A to the Credit Agreement is amended to read as set forth
in Exhibit A attached hereto.
p. Exhibit D to the Credit Agreement is amended to read as set forth
in Exhibit D attached hereto.
2. Exhibit C to the Borrower's Security Agreement dated June 20, 1995 in
favor of the Bank is amended to read as set forth in Exhibit C attached hereto.
Such Security Agreement, as so amended, continues to secure such Revolving Note
and all other Obligations as defined in such Security Agreement.
3. Except as amended herein or herewith, all provisions of the Credit
Agreement and all other agreements of the parties remain in full force and
effect. No provision of this Amendment can be amended, modified, waived or
terminated, except by a writing executed by the Borrower and the Bank. The
Borrower shall pay to the Bank on demand all of the Bank's costs and expenses,
including but not limited to reasonable attorneys' fees and legal expenses, in
connection with this Amendment, the writings executed herewith, and the
transactions described herein and therein. This Amendment shall bind and benefit
the parties and their respective successors and assigns; provided, the Borrower
shall not assign any of its rights or obligations under this Amendment without
the prior written consent of the Bank, and any assignment in violation of this
sentence shall be null and void. This Amendment shall be governed by and
construed in accordance with the laws of the State of Minnesota.
Executed as of the date first above written.
FUNCO, INC.
By /s/ ROBERT M. HIBEN
--------------------------------------
Title CHIEF FINANCIAL OFFICER
MARQUETTE CAPITAL BANK
By /s/ MARGART MARY YANEZ
--------------------------------------
Title VICE PRESIDENT
EXHIBIT A
FUNCO, INC.
BORROWING BASE CERTIFICATE
The undersigned chief financial officer of Funco, Inc. (the
"Borrower"), pursuant to the Credit Agreement dated June 20, 1995, as amended
(the "Agreement"), hereby certifies to Marquette Capital Bank (the "Bank") as
follows:
The Borrowing Base and the aggregate unpaid principal amount of all
Advances under the Agreement as of the close of business on ______, 19__, were:
1. Total Inventory $_______ (1)
2. Ineligible Inventory $_______ (2)
3. Eligible Inventory (1 minus 2) $_______ (3)
4. Borrowing Base (40% of Line 3) $_______ (4)
5. Credit Limit (lesser of Line 4 or $10,000,000.00) $_______ (5)
6. Unpaid Principal Amount of Advances $_______ (6)
7. Availability or (Shortfall) (5 minus 6) $_______ (7)
As of the date of this Certificate, the representations and
warranties contained in Article IV of the Agreement are correct, and no event
has occurred or would result from any Advance requested herewith which
constitutes an Event of Default under the Agreement or would constitute an Event
of Default under the Agreement with notice or the passage of time or both.
Date of Certificate:_____________, l9___
________________________________________
Signature
EXHIBIT C
FUNCOLAND STORE LOCATIONS
STORE # MALL/SHOPPING CTR ADDRESS SUITE # CITY STATE
001 Lariat Center 8256 Commonwealth Drive Eden Prairie MN
003 Maplewood Commons 1900 C.R. "D" Suite 150 Maplewood MN
004 McAndrews Center 14017 Grand Avenue South Burnsville MN
005 South Robert Plaza 2008 South Robert Street West St. Paul MN
006 Ridgedale Square South 12921 Ridgedale Drive Minnetonka MN
007 Shingle Creek Shopping Center 6068 Shingle Creek Parkway Brooklyn Center MN
008 Northcourt Commons 650-1/2 N.E. Highway 10 Blaine MN
010 Northwest Plaza Shopping Center 3420 55th St N.W. Rochester MN
012 Arbrook Oaks Shopping Center 3810 South Cooper Street Suite #110 Arlington TX
013 Bloomingdale Court 318 West Army Trail Rd. Suite 130 Bloomingdale IL
015 Grande Shopping Center 2664 North Beltline Road Irving TX
016 Oakridge Plaza 3112 North Jupiter Suite 308 Garland TX
019 Parkwood Square Shopping Center 3000 Custer Road #210 Plano TX
020 Lincoln Square Shopping Center 780 Road To Six Flags East #246 Arlington TX
022 Preston/Forrest Village Shopping Center 11661 Preston Rd. #234 Dallas TX
023 Towne Crossing Shopping Center 3600 Gus Thomasson Suite 126 Mesquite TX
024 Rockford Road Plaza 4190 Vinewood Lane N. Suite 112 Plymouth MN
027 Rivercrest Centre 13142 South Cicero Ave. Crestwood IL
028 South Hulen 5427-B South Hulen Forth Worth TX
029 Harwood Commons 4715 N. Harlem Ave. Harwood Heights IL
030 Lakeview Plaza 15864 S. LaGrange Rd. Suite D-1E Orland Park IL
031 Matteson Plaza 4147 Lincoln Highway Matteson IL
032 West Ridge Ct. Shopping Center 256 South Route 59 Naperville IL
033 White Rock Marketplace 11255 Garland Road Suite 1340 Dallas TX
034 Melbourne Plaza II 952 Melbourne Rd. Hurst TX
035 Scharrington Square 2517 W. Schaumberg Rd. Schaumburg IL
036 Park Plaza Shopping Center 9834 S. Western Ave. Evergreen Park IL
037 River Oaks West Shopping Center 583 River Oaks West Calumet City IL
038 Hawthorn Hills Fashion Center 700 North Milwaukee Ave. Suite 116 Vernon Hills IL
039 Villa Oaks Shopping Center 152 West Roosevelt Rd. Villa Park IL
040 Redbird Oaks Shopping Center 4333 Gannon Lane Suite 115 Dallas TX
041 Bricktown Square Shopping Center 6560 W. Fullerton Chicago IL
044 Southpoint Shopping Center 828 East Rand Rd. Arlington Hts. IL
045 Riverpoint Center 1730 W. Fullerton Chicago IL
046 Deerbrook Shopping Center 76 South Waukegan Rd. Deerfield IL
047 Village Crossing Mall 5695 Touhy Ave. Niles IL
051 Northwest Fashion Square 8655 W. Brown Deer Rd. Milwaukee WI
052 Brookfield Fashion Center 17000 C West Blue Mound Rd. Brookfield WI
053 Greenfield Fashion Center 7420 W. Holmes Ave. Greenfield WI
054 West Allis Town Center 6838 West Greenfield Ave. West Allis WI
055 North Riverside Park 7325 25th N. Riverside Park IL
056 Northridge Plaza 1470 N. Larkin Ave. Joliet IL
057 Crystal Court 5579 Northwest Highway Crystal Lake IL
058 Scottsdale Shopping Center 7945 South Cicero Ave. Chicago IL
059 Oakland Plaza 326 John R Troy MI
060 Hoover Eleven 26303 Hoover Rd. Warren MI
061 Burlington Square 22305 Eureka Rd. Taylor MI
062 Clinton Valley 44811 Schoenherr Road Sterling Heights MI
063 West Oaks II 43430 West Oaks Drive Novi MI
064 Summit Crossing 257 Summit West Waterford MI
065 Shops at Fairlane Meadows 16201 Ford Road Suite 101 Dearborn MI
066 Port Plaza Shopping Center 5322 N. Port Washington Rd. Glendale WI
067 Hampton Village Centre 2781 S. Rochester Rd. Rochester Hills MI
068 Cranbrook Village 878 West Eisenhower Pkwy Ann Arbor MI
069 West River Center 30042 Grand River Farmington Hills MI
070 Caldor Shopping Center 3580 Long Beach Road Oceanside NY
071 Clinton Pointe 33822 Gratiot Ave. Clinton Township MI
072 Turnpike Square 72 Turnpike Square Milford CT
073 RockLand Plaza Route 59 Nanuet NY
075 Parkway Plaza 207-B Glen Cove Rd. Carle Place NY
076 Super 17 501-C Route 17 Paramus NJ
077 Southfield Plaza 29740 Southfield Rd. Southfield MI
078 Nassau Mall 3601 Hempstead Turnpike Levittown NY
079 Edwards Shopping Center 921 Wolcott St. Waterbury CT
080 Middletown Commons Route 35 at Twinbrooks Ave. Middletown NJ
081 Price Club Plaza 323 Universal Dr. N. North Haven CT
082 Sunrise Bend Center 6150 Sunrise Hwy. Massapequa NY
083 Stony Brook Shopping Center 2194 K Route 347 Stony Brook NY
084 Merrillville Plaza 1621 East 80th Ave. Merrillville IN
086 2317 Route 22 Union NJ
087 Whitman Plaza 2142 Ralph Ave. Brooklyn NY
088 Woodbury Village 1505 Queens Dr. Woodbury MN
089 2347 Central Park Ave. Yonkers NY
090 1675 Sunrise Hwy. Bayshore NY
091 Midstate Shopping Center 300 Route 18 East Brunswick NJ
092 Islandia Shopping Center 1724 Veterans Memorial Hwy. Islandia NY
093 7050 Wayne Road Westland MI
094 Rosedale Commons 2480 Fairview Ave. N. Roseville MN
095 Grade A / Shoprite Plaza 360 Connecticut Ave. Norwalk CT
097 Townline Square 533 South Broad Street Meriden CT
098 Brick Plaza Store 12-Chambers Bridge Rd. Brick NJ
099 Midway Square 5143 S. Pulaski Rd. Chicago IL
100 Cherry Valley Avenue Shopping Center 480 Hempstead Turnpike West Hempstead NY
101 Plaza at Buckland Hill 1500-F Pleasant Valley Rd. Manchester CT
102 Blue Star Shopping Center 1701 U.S. Hwy. 22 Watchung NJ
103 Forest Plaza 2040 Forest Ave. Staten Island NY
104 Green Acres Mall 24 W. Circle Dr. Valley Stream NY
105 Springhill Fashion Corner 876 West Main Street West Dundee IL
106 Willowbrook Mall 1502 Willowbrook Mall Wayne NJ
108 Lincoln Park Shopping Center 1720 Dix Lincoln Park MI
STORE # ZIP PHONE NUMBER COUNTY
001 55344 (612) 944-2070 Hennepin
003 55109 (612) 779-9669 Ramsey
004 55337 (612) 898-4801 Dakota
005 55118 (612) 552-9515 Dakota
006 55305 (612) 591-5939 Hennepin
007 55429 (612) 561-8782 Hennepin
008 55432 (612) 783-0788 Hennepin
010 55901 (507) 280-6424 Olmsted
012 76015 (817) 468-9002 Tarrant
013 60108 (708) 529-3340 DuPage
015 75062 (214) 258-1176 Dallas
016 75044 (214) 495-5435 Dallas
019 75075 (214) 596-1411 Collin
020 76011 (817) 860-1134 Tarrant
022 75230 (214) 368-0071 Dallas
023 75150 (214) 279-1672 Dallas
024 55442 (612) 551-0178 Hennepin
027 60445 (708) 385-3322 Cook
028 76132 (817) 370-7170 Tarrant
029 60656 (847) 867-7171 Cook
030 60462 (708) 349-4443 Cook
031 60443 (708) 503-1333 Cook
032 60540 (708) 355-4666 DuPage
033 75218 (214) 324-3331 Dallas
034 76053 (817) 590-0900 Tarrant
035 60194 (847) 582-2233 Cook
036 60642 (708) 422-0098 Cook
037 60409 (708) 862-2288 Cook
038 60061 (847) 367-4444 Lake
039 60181 (708) 530-2828 DuPage
040 75237 (214) 709-8907 Dallas
041 60635 (312) 637-2727 Cook
044 60004 (847) 670-1166 Cook
045 60614 (312) 549-0885 Cook
046 60015 (847) 498-5511 Lake
047 60648 (847) 647-8114 Cook
051 53223 (414) 357-7730 Milwaukee
052 53005 (414) 789-7311 Waukesha
053 53220 (414) 325-9211 Milwaukee
054 53214 (414) 774-7355 Milwaukee
055 60546 (708) 442-1331 Cook
056 60435 (815) 741-9090 Will
057 60014 (815) 459-3466 McHenry
058 60652 (312) 284-5599 Cook
059 48083 (810) 589-2138 Oakland
060 48089 (810) 758-2111 Macomb
061 48180 (313) 374-2020 Wayne
062 48313 (810) 726-9480 Macomb
063 48377 (810) 348-5090 Oakland
064 48328 (810) 738-0077 Oakland
065 48126 (313) 271-6700 Wayne
066 53209 (414) 964-6688 Milwaukee
067 48307 (810) 299-4848 Oakland
068 48103 (313) 668-1400 Washtenaw
069 48336 (810) 615-0011 Oakland
070 11572 (516) 594-1549 Nassau
071 48043 (810) 792-5151 Macomb
072 06460 (203) 877-5977 New Haven
073 10954 (914) 624-1902 Rockland
075 11514 (516) 739-2631 Nassau
076 07652 (201) 262-1141 Bergin
077 48076 (810) 557-7001 Oakland
078 11756 (516) 735-8030 Nassau
079 06702 (203) 757-8000 New Haven
080 07748 (908) 706-0611 Monmouth
081 06473 (203) 239-7533 New Haven
082 11758 (516) 799-4002 Nassau
083 11790 (516) 689-7260 Suffolk
084 46410 (219) 756-1455 Porter
086 07083 (908) 686-6399 Union
087 11234 (718) 251-5021 Kings
088 55125 (612) 739-2202 Washington
089 10710 (914) 779-8027 Westchester
090 11706 (516) 968-0686 Suffolk
091 08816 (908) 651-0055 Middlesex
092 11722 (516) 348-0706 Suffolk
093 48185 (313) 728-5740 Wayne
094 55113 (612) 638-9551 Ramsey
095 06854 (203) 831-0393 Fairfield
097 06450 (203) 235-6955 New Haven
098 08723 (908) 920-1110 Ocean
099 60632 (312) 735-8008 Cook
100 11552 (516) 485-3024 Nassau
101 06040 (203) 644-3546 Hartford
102 07060 (908) 322-6808 Somerset
103 10303 (718) 494-1550 Richmond
104 11581 (516) 823-9526 Nassau
105 60118 (708) 836-0606 Kane
106 07470 (201) 812-7933 Passaic
108 48186 (313) 381-5524 Wayne
STORE # MALL/SHOPPING CTR ADDRESS SUITE # CITY STATE
109 Queens Center 91-41 Queens Blvd. Elmhurst NY
110 Forest Plaza 6075 E. State St. Rockford IL
111 Whitman Plaza 330 Oregon Ave. Philadelphia PA
112 One & Olney Square 101 E. Olney Ave. Philadelphia PA
113 Somerset Shopping Center 361 U.S. Hwy. 202/206 Bridgewater NJ
114 Laurel Shopping Center 345 Montrose Ave. Laurel MD
115 Federal Plaza 12266 Rockville Ave. Rockville MD
116 Governor Plaza 6619 Ritchie Hwy. Suite #15 Glen Burnie MD
117 Caldor Shopping Center 877 St. Georges Ave. Woodbridge NJ
118 Kirkwood Plaza 4345 Kirkwood Hwy. Suite #100 Wilmington DE
119 Locust Grove Shopping Center 1692 Clements Bridge Rd. Suite L Deptford NJ
120 Woodfield Village Green 1402 E. Golf Rd. Schaumburg IL
121 East Gate Plaza 1020 Nixon Drive Suite 24 Mt. Laurel NJ
122 Fordham Road 2485 Grand Concourse Bronx NY
123 Marple Cross roads 400 S. State Road Springfield PA
124 69th Street 51 South 69th St. Upper Darby PA
125 The Hub 34 W. 66th St. Richfield MN
126 Plaza 234 8368 Sudley Rd. Manassas VA
127 Bayridge 469 86th Street Brooklyn NY
128 Fair City Mall 9650 Main St. Suite 22 Fairfax East VA
129 Port Richmond Village 2499 Aramingo Ave. Suite A Philadelphia PA
130 Whiteland Town Center 201 West Lincoln Hwy Exton PA
131 Landmark Plaza 6244 Little River Turnpike Alexandria VA
132 Home and Design Center 187 Franklin Mills Blvd. Suite A Philadelphia PA
133 Willston Center 6198 A&B Arlington Blvd. Falls Church VA
134 Pearl Plaza 117 Pearl St. Braintree MA
135 TJ Maxx Plaza 440 Middlesex Rd. Tyngsboro MA
136 Northbrook Shopping Center 5324 W. 34th St. Houston TX
138 Franklin Village 15 Franklin Village Drive Franklin MA
139 Dartmouth Towne Center 400 State Road, Suite 770 North Dartmouth MA
140 Eastridge Commons 3739 Lapeer Road Suite D-107 Flint MI
141 Kentwood Towne Center 4168 28th St. SE Kentwood MI
142 Bayshore 3830 Spencer Hwy Pasadena TX
143 Dobbins Center 6435 Dobbins Rd. Columbia MD
144 Sherwood Plaza 1298 AA Worcester St. Natick MA
145 Baytown Central 4508 Garth Road Suite E Baytown TX
146 Hillside Plaza 741 Broadway Saugus MA
147 Danada Square East 73 A Danada Square East Wheaton IL
148 Edgewood Shopping Center 438 E. Edgewood Blvd. Lansing MI
150 Commons at Deerbrook 9636 FM 1960 Bypass Humble TX
151 Venture Plaza 2050 W. Peterson Ave Chicago IL
152 Shops at 3 Corners 8138 Kirby Drive Houston TX
153 Delta Plaza 5451-K West Saginaw Hwy. Lansing MI
154 K-Mart Shopping Center 4139 24th Ave. Fort Gratiot MI
155 Concord Gallery 3612 Concord Pike Wilmington DE
156 Annapolis Plaza 150 B Jennifer Rd. Annapolis MD
157 Hudson Mall 701 State Hwy 440 Suite 14 Jersey City NJ
158 Brittany West 601 Hartford Rd. New Brittain CT
159 The Commons at Willowbrook 7720 FM 1960 West Houston TX
160 Fariless Hills Town Square 491 Oxford Valley Rd. Fairless Hills PA
161 Reisterstown Road Plaza 6520 "A" Reisterstown Rd. Baltimore MD
162 Smoketown Station 13277 Worth Ave. Woodbridge VA
163 Grand Hunt Center 6549 Grand Ave. Gurnee IL
164 Peabody Place 300 Andover Street Peabody MA
165 57-20 Myrtle Ave. Ridgewood NY
166 Galveston Place Shopping Ctr. 2717 61st Street Galveston TX
167 Chelten Green 126 W. Chelten Ave. Philadelphia PA
168 Great NE Plaza 2201 Cottman Ave. #245 Philadelphia PA
169 Westchester 418 Westchester Ave. Bronx NY
170 Andorra Shopping Center 8500 Henry Ave. Philadelphia PA
171 Regency Point Shopping Center 2310 "D" S. Green Bay Rd. Racine WI
173 Montgomery Village Shopping
Center 9667 Lost Knife Road Gaithersburg MD
174 Benjamin Plaza 9139 Hillcrest Rd. "J" Kansas City MO
175 Roeland Park Shopping Center 5016 Roe Blvd. Roeland Park KS
176 Market Place Shopping Center 14310 E. 42nd St. "F" Independence MO
177 Orchard Corners Shopping Center 9672 Quivera Rd. Lenexa KS
178 Creekwood Commons 216 NE Englewood Rd. Kansas City MO
179 Oak Brook Square B-3192 South Linden Road Flint MI
180 Saginaw Square 5206 A Bay Road Saginaw MI
181 Burlington Square 101 Middlesex Turnpike Burlington MA
182 Mondawmin Mall 2301 Liberty Heights Ave. Baltimore MD
184 Fields Corner Shopping Center 518 Geneva Ave. Dorchester MA
185 Division Place Fashion Center 2954 Division Street St. Cloud MN
186 West Gate Mall 200 West Gate Drive "3 B&C" Brockton MA
188 30 Backus Ave. Danbury CT
189 Best Buy Metro Center 6575 Frontier Dr. "M" Springfield VA
190 Beltway Plaza Shopping Center 6100 Greenbelt Rd. Greenbelt MD
194 York Road Plaza 6370 York Road Baltimore MD
195 Manhattan Mall 100 W. 33rd St. 7th
floor-Space VC-5 New York NY
196 Vista Ridge Village 565 East Hwy. 3040 Suite 202 Lewisville TX
197 Assembly Square 133 Middlesex Ave. Somerville MA
198 Mall of America 246 North Garden Bloomington MN
200 Serra Center 4929 Junipero Serra Blvd. Colma CA
201 The Groves Shopping Center 1530-A West 75th Street Downer's Grove IL
202 Pleasant Hills Shopping Center 552 Contra Costa Blvd. Pleasant Hills CA
203 Westgate Mall 1600 Saratoga Ave. #302 San Jose CA
999 Minneapolis Support Office 10120 W. 76th St. Eden Prairie, MN
STORE # ZIP PHONE NUMBER COUNTY
109 11373 (718) 533-1993 Queens
110 61008 (815) 397-6475 Winnebago
111 19148 (215) 271-9399 Philadelphia
112 19120 (215) 548-4594 Philadelphia
113 08807 (908) 429-9111 Somerset
114 20707 (301) 776-9606 Prince George
115 20852 (301) 231-6691 Montgomery
116 21061 (410) 768-0538 Anne Arundel
117 07095 (908) 750-9424 Middlesex
118 19808 (302) 633-6088 New Castle
119 08096 (609) 384-8448 Glouchester
120 60173 (847) 240-5656 Cook
121 08054 (609) 722-0211 Camden
122 10468 (718) 562-3866 Bronx
123 19064 (610) 690-4402 Delaware
124 19081 (610) 352-9889 Philadelphia
125 55423 (612) 861-3575 Hennepin
126 22110 (703) 330-3559 Prince William
127 11209 (718) 748-8332 Brooklyn
128 22031 (703) 978-0295 Fairfax
129 19125 (215) 425-3680 Philadelphia
130 19341 (610) 594-3910 Chester
131 22312 (703) 642-0991 Fairfax
132 19154 (215) 824-1108 Philadelphia
133 22044 (703) 533-1523 Fairfax
134 02184 (617) 849-1711 Norfolk
135 01879 (508) 649-3060 Middlesex
136 77092 (713) 686-8886 Houston
138 02038 (508) 528-7011 Norfolk
139 02747 (508) 984-5540 Bristol
140 48502 (810) 743-8123 Genesee
141 49508 (616) 942-7710 Kent
142 77504 (713) 944-5501 Houston
143 21045 (410) 740-2090 Howard
144 01760 (508) 655-4888 Middlesex
145 77521 (713) 428-2669 Harris
146 01906 (617) 233-6652 Essex
147 60187 (708) 260-4975 DuPage
148 48911 (517) 393-7845 Ingram
150 77338 (713) 548-0708 Harris
151 60659 (312) 761-3298 Cook
152 77054 (713) 663-6900 Harris
153 48917 (517) 323-3144 Eaton
154 48059 (810) 385-3636 St. Clair
155 19806 (302) 479-7833 New Castle
156 21401 (410) 224-4426 Anne Arundel
157 07340 (201) 451-4577 Hudson
158 06053 (203) 224-8551 Hartford
159 77070 (713) 807-9800 Harris
160 19030 (215) 949-6949 Bucks
161 21215 (410) 358-5747 Baltimore
162 22192 (703) 492-8627 Prince William
163 60031 (847) 855-8230 Lake
164 01960 (508) 532-5511 Essex
165 11385 (718) 497-0008 Queens
166 77551 (409) 744-8998 Galveston
167 19144 (215) 842-2090 Philadelphia
168 19152 (215) 745-7477 Philadelphia
169 10455 (718) 292-0780 Bronx
170 19128 (215) 483-8889 Philadelphia
171 53406 (414) 554-9901 Racine
173 20879 (301) 212-9884 Montgomery
174 64134 (816) 767-9995 Jackson
175 66205 (913) 677-3343 Johnson
176 64055 (816) 373-3133 Jackson
177 66215 (913) 438-3636 Johnson
178 64118 (816) 453-7766 Clay
179 48507 (810) 733-1144 Genesee
180 48604 (517) 799-6600 Saginaw
181 01803 (617) 229-8676 Middlesex
182 21215 (410) 225-9828 Baltimore
184 02122 (617) 282-4049 Norfolk
185 56301 (612) 654-8900 Stearns
186 02401 (508) 559-1710 Norfolk
188 06810 (203) 798-7881 Fairfield
189 22150 (703) 971-5597 Fairfax
190 20770 (301) 345-0987 Prince Georges
194 21212 (410) 372-0544 Baltimore
195 10001 (212) 868-3156 New York
196 75067 (214) 459-1828 Denton
197 02145 (617) 776-7181 Norwalk
198 55425 (612) 854-6191 Hennepin
200 94014 (415) 756-7761 San Mateo
201 60516 (708) 241-1001 DuPage
202 94523 (510) 609-8019 Alameda
203 95129 (408) 379-8862 Santa Clara
999 55344 (612) 946-8883 Hennepin
EXHIBIT D
FUNCO, INC.
COVENANT COMPLIANCE CERTIFICATE
The undersigned chief financial officer of Funco, Inc., pursuant to
the Credit Agreement dated June 20, 1995, as amended (the "Agreement"), hereby
certifies to Marquette Capital Bank as follows:
As of the close of business on ___________ , 19___, the following
amounts and ratios were true and correct:
1. Section 5.16 Consolidated Tangible Net Worth:
a. Actual Consolidated Tangible Net Worth $_______
b. Minimum Consolidated Tangible NetWorth $_______
2. Section 5.17 Consolidated Current Ratio:
a. Consolidated Current Assets $_______
b. Consolidated Current Liabilities $_______
c. Actual Ratio of Consolidated Current Assets
to Consolidated Current Liabilities ______to 1
d. Minimum Ratio ______to 1
3. Section 5.18 Consolidated EBITDA for 12-Fiscal Month Period
Ending ___________, 19___:
a. Earnings: Net Income or (Loss) $_______
b. Interest Expense $_______
c. Taxes Expense $_______
d. Depreciation Expense $_______
e. Amortization Expense $_______
f. Actual EBITDA (a + b + c + d + e) $_______
g. Minimum EBITDA $_______
As of the date of this Certificate, no event has occurred which
constitutes an Event of Default under the Agreement or would constitute an Event
of Default under the Agreement with notice or the passage of time or both.
Date of Certificate: ________________, 19____
______________________________________
Signature
AMENDED AND RESTATED PROMISSORY NOTE
For valuable consideration, the receipt and sufficiency of which is
hereby acknowledged by the parties, the $6,000,000.00 Promissory Note of Funco,
Inc. dated June 20, 1995, payable to the order of Marquette Capital Bank, is
amended and restated to read as follows:
$10,000,000.00 Minneapolis, Minnesota
FOR VALUE RECEIVED, on June 30, 1997, the undersigned, FUNCO, INC.,
promises to pay to the order of MARQUETTE CAPITAL BANK (the "Bank"), at its
office in Minneapolis, Minnesota, or at such other place as any present or
future holder of this Note may designate from time to time, the principal sum of
(i) $10,000,000.00, or (ii) the aggregate unpaid principal amount of all
advances of credit made by the Bank to the undersigned pursuant to this Note as
shown in the records of any present or future holder of this Note, whichever is
less, plus interest thereon from the date of each advance in whole or in part
included in such amount until this Note is fully paid, computed on the basis of
the actual number of days elapsed and a 360-day year, at an annual rate that
shall always be 1/4 of 1 % per annum in excess of the prime rate and that shall
change when and as the prime rate shall change. Interest is due and payable on
the last day of each month and at maturity. The term "prime rate" means the rate
established by the Bank from time to time in its sole discretion as its prime
rate; the Bank may lend to its customers at rates that are at, above or below
the prime rate. Notwithstanding the foregoing, after an Event of Default this
Note shall bear interest until paid at 2% per annum in excess of the rate
otherwise then in effect, which rate shall continue to vary based on further
changes in the prime rate. The undersigned shall not permit the unpaid principal
balance of this Note to exceed $3,000,000.00, except during the period from
September 15, 1996 through December 15, 1996.
All or any part of the unpaid balance of this Note may be prepaid at
any time without penalty. At the option of the then holder of this Note, any
payment under this Note may be applied first to the payment of other charges,
fees and expenses under this Note and any other agreement or writing in
connection with this Note, second to the payment of interest accrued through the
date of payment, and third to the payment of principal. Amounts may be advanced
and readvanced under this Note, provided the principal balance outstanding shall
not exceed $10,000,000.00 during the period from September 15, 1996 through
December 15, 1996, and shall not exceed $3,000,000.00 at any other time.
The occurrence of an Event of Default under the Credit Agreement
dated June 20, 1995 by and between the undersigned and the Bank, as it may be
amended from time to time, shall constitute an Event of Default under this Note.
Upon the occurrence of an Event of Default and at any time
thereafter, the then holder of this Note may, at its option, declare this Note
to be immediately due and payable and thereupon this Note shall become
immediately due and payable for the entire unpaid principal balance of this Note
plus accrued interest and other charges on this Note without any presentment,
demand, protest or other notice of any kind.
The undersigned (i) waives demand, presentment, protest, notice of
protest, notice of dishonor and notice of nonpayment of this Note; and (ii)
agrees that when or at any time after this Note becomes due the then holder of
this Note may offset or charge the full amount owing on this Note against any
account then maintained by the undersigned with such holder of this Note without
notice. Interest on any amount under this Note shall continue to accrue, at the
option of any present or future holder of this Note, until such holder receives
final payment of such amount in collected funds in form and substance acceptable
to such holder.
No waiver of any right or remedy under this Note shall be valid
unless in writing executed by the holder of this Note, and any such waiver shall
be effective only in the specific instance and for the specific purpose given.
All rights and remedies of all present and future holders of this Note shall be
cumulative and may be exercised singly, concurrently or successively. This Note
shall bind the undersigned and the successors and assigns of the undersigned.
This Note shall be governed by and construed in accordance with the laws of the
State of Minnesota.
THE UNDERSIGNED REPRESENTS, CERTIFIES, WARRANTS AND AGREES THAT THE
UNDERSIGNED HAS READ ALL OF THIS NOTE AND UNDERSTANDS ALL OF THE PROVISIONS OF
THIS NOTE.
Executed as of June 30, 1996.
FUNCO, INC.
By /s/ ROBERT M. HIBEN
-----------------------------------
Title Chief Financial Officer
Marquette Capital Bank agrees to this Amended and Restated Promissory Note.
Executed as of June 30, 1996.
MARQUETTE CAPITAL BANK
By /s/ MARGARET MARY YANEZ
-----------------------------------
Title Vice President