Exhibit 10.1

 

LIMITED WAIVER AND CONSENT

 

LIMITED WAIVER AND CONSENT, dated as of November 15, 2008 (this “Waiver”), with
respect to the Amended and Restated Term Loan Credit Agreement, dated as of
April 20, 2007 (as amended, restated or otherwise modified from time to time,
the “Credit Agreement”), by and among D 56, Inc., a Minnesota corporation
(“D56”), Lenox Retail, Inc., a Minnesota corporation (“Lenox Retail”), Lenox,
Incorporated, a New Jersey corporation (“Lenox”, and together with D56 and Lenox
Retail, each a ”Borrower” and collectively, the “Borrowers”), the guarantors
party thereto as guarantors, the financial institutions from time to time party
thereto as lenders (each a “Lender” and collectively, the ”Lenders”), UBS AG,
Stamford Branch, as the administrative agent and collateral agent for the
Lenders (in such capacity, the ”Agent”), and UBS Securities LLC as the sole
arranger and syndication agent.

 

WHEREAS, the Agent resigned as Administrative Agent effective October 15, 2008,
and no successor has yet been appointed; and

 

WHEREAS, the Borrowers have advised the Lenders that certain events prohibited
by the Credit Agreement have occurred and have requested that the Lenders waive
any Events of Default that would otherwise arise as a result of the occurrence
of such events; and

 

WHEREAS, the Lenders are willing to waive such Events of Default on the terms
and conditions set forth herein;

 

NOW, THEREFORE, the Borrowers and the Lenders hereby agree as follows:

 

1.         Capitalized Terms. All terms which are defined in the Credit
Agreement and not otherwise defined herein are used herein as defined therein.
In addition, as used in this Waiver, the following terms shall have the
respective meanings indicated below, such meanings to be applicable equally to
both the singular and plural forms of such terms:

 

            “Specified Events” means, the failure of the Loan Parties and their
Subsidiaries to (i) maintain a Consolidated Fixed Charge Coverage Ratio for the
Test Period ending September 30, 2008 of at least 1.15 to 1.0 as required by
Section 6.08(a) of the Credit Agreement, and (ii) maintain a Leverage Ratio for
the Test Period ending September 30, 2008 of less than 6.75 to 1.0, as required
by Section 6.08(c) of the Credit Agreement.

 

2.         Waiver and Consent.

 

            (a)       Pursuant to the request of the Borrowers and in accordance
with Section 10.02 of the Credit Agreement, for the period commencing on the
effective date of this Waiver and ending on November 24, 2008 (the “Waiver
Period”), the Lenders hereby consent to, and waive any Event of Default that has
or would otherwise arise under Section 8.01(d)(i) of the Credit Agreement by
reason of the occurrence of any of the Specified Events.

 

--------------------------------------------------------------------------------

            (b)       Upon the expiration of the Waiver Period, the waiver and
consents provided for herein shall be immediately (without cure period) and
automatically terminated in their entirety and be of no further force or effect.

 

            (c)       The waiver and consents in this Section 2 shall be
effective only in this specific instance, for the specific purpose, and for the
specific period set forth herein and do not allow for any other or further
departure from the terms and conditions of the Credit Agreement or any other
Loan Document, which terms and conditions shall continue in full force and
effect.

 

3.         Conditions. This Waiver shall become effective only upon receipt by
counsel for the Lenders of counterparts of this Waiver, duly executed by the
Borrowers and the Required Lenders.

 

4.         Continued Effectiveness of the Credit Agreement.

 

            (a)       Ratifications. Except as otherwise expressly provided
herein, (i) the Credit Agreement and the other Loan Documents are, and shall
continue to be, in full force and effect and are hereby ratified and confirmed
in all respects, (ii) to the extent that the Credit Agreement or any other Loan
Document purports to pledge to the Agent, or to grant to the Agent a security
interest in or lien on, any collateral as security for the Obligations, such
pledge or grant of a security interest or lien is hereby ratified and confirmed
in all respects, and (iii) the execution, delivery and effectiveness of this
Waiver shall not operate as an amendment of any right, power or remedy of the
Agent or the Lenders under the Credit Agreement or any other Loan Document, nor
constitute an amendment of any provision of the Credit Agreement or any other
Loan Document.

 

            (b)       No Waivers. Except as otherwise expressly provided herein,
this Waiver is not a waiver of, or consent to, any Default or Event of Default
now existing or hereafter arising under the Credit Agreement or any other Loan
Document and the Agent and the Lenders expressly reserve all of their rights and
remedies under the Credit Agreement and the other Loan Documents, under
applicable law or otherwise.

 

5.         Miscellaneous.

 

            (a)       Counterparts. This Waiver may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which shall be deemed to be an original, but all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of
this Waiver by telefacsimile or electronic mail shall be equally effective as
delivery of an original executed counterpart of this Waiver.

 

            (b)       Headings. Section and paragraph headings herein are
included for convenience of reference only and shall not constitute a part of
this Waiver for any other purpose.

 

            (c)       Governing Law. This Waiver shall be governed by, and
construed in accordance with, the laws of the State of New York.

 

-2-

--------------------------------------------------------------------------------

            (d)       Expenses. The Borrowers will pay on demand all reasonable
fees, costs and expenses of the Lenders in connection with the preparation,
execution and delivery of this Waiver and all documents incidental hereto,
including, without limitation, the reasonable fees, disbursements and other
charges of Schulte Roth & Zabel LLP, counsel to the Lenders.

 

[SIGNATURE PAGE FOLLOWS]

 

 

-3-

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the parties hereto have caused this Limited Waiver and
Consent to be executed by their respective officers thereunto duly authorized,
as of the date first above written.

 

--------------------------------------------------------------------------------

 

 

D56, INC., as a Borrower

 

By: 

/s/ Fred Spivak

 

 

 

Name: Fred Spivak
Title: Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

LENOX RETAIL, INC., as a Borrower

 

By: 

/s/ Fred Spivak

 

 

 

Name: Fred Spivak
Title: Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

LENOX, INCORPORATED, as a Borrower

 

By: 

/s/ Fred Spivak

 

 

 

Name: Fred Spivak
Title: Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

LENOX GROUP, INC., as a Guarantor

 

By: 

/s/ Fred Spivak

 

 

 

Name: Fred Spivak
Title: Chief Financial Officer

 

--------------------------------------------------------------------------------

 

 

LENOX SALES, INC.
FL 56 INTER CORP., as a Subsidiary Guarantor

 

By: 

/s/ Fred Spivak

 

 

 

Name: Fred Spivak
Title: Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

LENOX WORLDWIDE LLC, as a Subsidiary Guarantor

 

By: 

/s/ Fred Spivak

 

 

 

Name: Fred Spivak
Title: Chief Financial Officer

 

--------------------------------------------------------------------------------

 

 

CEDARVIEW LEVERAGED OPPORTUNITIES MA, LTD

 

 

 

 

By: 

/s/ Burton Weinstein

 

 

 

Name: Burton Weinstein
Title: Managing Partner

 

 

 

 

 

 

 

 

 

 

 

CEDARVIEW LEVERAGED OPPORTUNITIES MA II, LTD

 

 

 

 

By: 

/s/ Burton Weinstein

 

 

 

Name: Burton Weinstein
Title: Managing Partner

 

 

 

 

 

 

 

 

 

 

 

CEDARVIEW OPPORTUNITIES MASTER FUND, LP

 

 

 

 

By: 

/s/ Burton Weinstein

 

 

 

Name: Burton Weinstein
Title: Managing Partner

 

 

 

 

 

 

 

 

 

 

 

AII INVESTMENT HOLDINGS, LTD

 

 

 

 

By: 

/s/ Burton Weinstein

 

 

 

Name: Burton Weinstein
Title: Managing Partner

 

--------------------------------------------------------------------------------

 

 

CETUS CAPITAL LLC

 

 

 

 

By: 

/s/ Richard Maybaum

 

 

 

Name: Richard Maybaum
Title: Managing Director

 

--------------------------------------------------------------------------------

 

 

CHASE LINCOLN FIRST COMMERCIAL
CORPORATION

 

 

 

 

By: 

/s/ Samantha E. Hamerman

 

 

 

Name: Samantha E. Hamerman
Title: Authorized Signatory

 

--------------------------------------------------------------------------------

 

 

CLINTON - MAGNOLIA MASTER FUND

 

 

 

 

By: 

/s/ Francis Ruchalski

 

 

 

Name: Francis Ruchalski
Title: CFO

 

 

 

 

 

 

 

 

 

 

 

CLINTON GROUP INC. - MULTI MAS

 

 

 

 

By: 

/s/ Francis Ruchalski

 

 

 

Name: Francis Ruchalski
Title: CFO

 

--------------------------------------------------------------------------------

 

 

LBC CREDIT PARTNERS, L.P.

 

 

 

 

By: 

/s/ David E. Fraimow

 

 

 

Name: David E. Fraimow
Title: Vice President

 

 

 

 

 

 

 

 

 

 

 

LBC CREDIT PARTNERS PARALLEL, L.P.

 

 

 

 

By: 

/s/ David E. Fraimow

 

 

 

Name: David E. Fraimow
Title: Vice President

 

 

--------------------------------------------------------------------------------

 

 

RAMIUS CREDIT OPPORTUNITIES
MASTER FUND LTD (F/K/A RCG
CARPATHIA MASTER FUND, LTD.)

 

 

 

 

By: 

/s/ Marc Baum

 

 

 

Name: Marc Baum
Title: Authorized Signatory

 

--------------------------------------------------------------------------------

 

 

TRUMPET INVESTORS LP

 

 

 

 

By: 

/s/ Eric Kogan

 

 

 

Name: Eric Kogan
Title: Manager

 

 

--------------------------------------------------------------------------------