EXHIBIT 10(U)(VII)

 

EXECUTION VERSION

 

FIRST AMENDMENT, dated as of November 6, 2013 (this “Amendment”), to the Third
Amended and Restated Credit Agreement, dated as of April 18, 2013 (as heretofore
amended and as may be further amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”), among Fifth & Pacific Companies, Inc.
(the “Company”), Kate Spade UK Limited and Kate Spade Canada Inc. (collectively,
the “Borrowers”), the other Loan Parties from time to time party thereto, the
Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and US
Collateral Agent, J.P. Morgan Europe Limited, as European Administrative Agent
and European Collateral Agent, JPMorgan Chase Bank, N.A., Toronto Branch, as
Canadian Administrative Agent and Canadian Collateral Agent, Bank of America,
N.A., as Syndication Agent, and Wells Fargo Capital Finance, LLC and SunTrust
Bank, as Documentation Agents.

 

W I T N E S S E T H :

 

WHEREAS, (i) the Borrowers, the other Loan Parties, the Lenders, the Syndication
Agent, the Documentation Agents, the Administrative Agent, the European
Administrative Agent and the Canadian Administrative Agent are parties to the
Credit Agreement, (ii) Fifth & Pacific Companies, Inc., certain Subsidiaries
thereof (including Juicy Couture, Inc. (“Juicy”), L.C. Licensing LLC (“L.C.
Licensing”) and ABG Juicy Couture, LLC (“Juicy Newco”)), and JPMorgan Chase
Bank, N.A., in its capacity as the Administrative Agent and the US Collateral
Agent are parties to the Amended and Restated US Pledge and Security Agreement
dated as of April 18, 2013 (as heretofore amended and as may be further amended,
supplemented or otherwise modified from time to time, the “US Security
Agreement”) and (iii) Juicy Couture Europe Limited (“Juicy Europe”) and J.P.
Morgan Europe Limited, in its capacity as the European Administrative Agent and
European Collateral Agent are parties to the Juicy Debenture;

 

WHEREAS, the Company has entered into that certain Purchase Agreement dated as
of October 7, 2013 (as amended by an Amendment Agreement dated as of November 6,
2013, the “Purchase Agreement”), by and among the Company, Juicy and ABG-Juicy,
LLC, a Delaware limited liability company (the “Buyer”), pursuant to which
(i) the Company, L.C. Licensing, Juicy and Juicy Europe will transfer to Juicy
Newco the Juicy Assumed Contracts and the Juicy IP Assets (as each such term is
defined in the Purchase Agreement), and Juicy Newco will assume the Juicy
Assumed Liabilities (as defined in the Purchase Agreement), and (ii) at the
Closing Date (as defined in the Purchase Agreement), the Buyer will purchase
from Juicy 100% of the issued and outstanding limited liability company
membership interests of Juicy Newco (the “Company Shares”);

 

WHEREAS, in connection with the foregoing, the Borrowers have requested that the
Lenders permit the sale transaction contemplated by the Purchase Agreement;

 

WHEREAS, in connection with the foregoing, the Lenders are willing to amend the
Credit Agreement as set forth herein.

 

NOW, THEREFORE, in consideration of the premises contained herein, the parties
hereto agree as follows:

 

1.              Defined Terms.  Unless otherwise defined herein, capitalized
terms used herein which are defined in the Credit Agreement are used herein as
therein defined.

 

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2.              Amendments.

 

(a)                 Clause (a)(vii) of the definition of “Consolidated EBITDA”
in Section 1.01 of the Credit Agreement is hereby amended and restated in its
entirety as follows:

 

“(vii) cash restructuring charges, cash charges in connection with store closure
and other non-recurring cash charges, in each case, related to cost reduction
and brand exiting related activities (A) in connection with the wind-down of the
Juicy Couture business following the Closing Date (as defined in the Juicy
Purchase Agreement) contemplated by the Juicy Purchase Agreement or (B) in an
aggregate amount not to exceed $10,000,000 for any Test Period,”

 

(b)                 Section 1.01 of the Credit Agreement is hereby amended to
add the following definition:

 

“Juicy Purchase Agreement” means that certain Purchase Agreement dated as of
October 7, 2013, by and among the Company, Juicy Couture, Inc. and ABG-Juicy
LLC, as amended by an Amendment Agreement dated as of November 6, 2013 and as
such agreement may be further amended, supplemented or otherwise modified in a
manner that is not adverse to the interests of the Lenders.”

 

(b)                 Section 6.05 of the Credit Agreement is hereby amended to
insert the following clause (u) in the appropriate alphabetical order: “(u)    
the sale of 100% of the issued and outstanding limited liability company
membership interests in ABG Juicy Couture, LLC pursuant to the Juicy Purchase
Agreement;”

 

(c)                  The final paragraph of Section 6.05 of the Credit Agreement
is hereby amended by deleting “and (r)” and replacing it with “, (r) and (u)”.

 

3.              Representations and Warranties.  The Borrowers hereby represent
that as of the Amendment Effective Date (as defined below) each of the
representations and warranties made by any Loan Party in or pursuant to the Loan
Documents is true and correct in all material respects as if made on and as of
such date (it being understood and agreed that any representation or warranty
that by its terms is made as of a specific date shall be required to be true and
correct in all material respects only as of such specified date), and no Default
or Event of Default has occurred and is continuing after giving effect to the
amendments contemplated herein.

 

4.              Effectiveness of Amendment.  This Amendment shall become
effective on and as of the date (such date the “Amendment Effective Date”) of
satisfaction of the following conditions:

 

(a)                 execution and delivery of this Amendment by the Borrowers,
the Administrative Agent, the US Collateral Agent, the European Administrative
Agent, the European Collateral Agent, the Canadian Administrative Agent, the
Canadian Collateral Agent and the Lenders;

 

(b)                 substantially simultaneously with the Amendment Effective
Date, the sale of the Company Shares to the Buyer and/or any of its Affiliates
pursuant to the Purchase Agreement;

 

(c)                  both immediately before and after giving effect to this
Amendment and the sale of the Company Shares, no Default or Event of Default
shall have occurred and be continuing on the Amendment Effective Date;

 

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(d)                 both immediately before and after giving effect to this
Amendment and the sale of the Company Shares, each of the representations and
warranties made by any Loan Party in the Loan Documents shall be true and
correct in all material respects on and as of the Amendment Effective Date as if
made on and as of such date except to the extent such representations and
warranties expressly relate to an earlier date, in which case they shall be true
and correct in all material respects as of such earlier date; and

 

(e)                  receipt by the Administrative Agent of all reasonable and
documented out-of-pocket costs and expenses for which invoices have been
presented (including the reasonable and documented fees and expenses of one firm
of external legal counsel in each relevant jurisdiction).

 

5.              Expenses.  The Borrowers agree to pay and reimburse the
Administrative Agent for all its reasonable and documented out-of-pocket costs
and expenses incurred in connection with the preparation and delivery of this
Amendment, including, without limitation, the reasonable fees and disbursements
of counsel to the Administrative Agent.

 

6.              Effect.  Except as expressly amended or modified hereby, all of
the representations, warranties, terms, covenants and conditions of the Loan
Documents shall remain unamended, unmodified and not waived and shall continue
to be in full force and effect.  The Borrowers and the other parties hereto
acknowledge and agree that this Amendment shall constitute a Loan Document. 
This Amendment shall not constitute an amendment of any provision of the Credit
Agreement or any other Loan Document not expressly referred to herein and shall
not be construed as a waiver or consent to any further or future action on the
part of the Borrowers that would require a waiver or consent of the Lenders or
any Agent.  Except as expressly amended hereby, the provisions of the Credit
Agreement are and shall remain in full force and effect.  On and after the
Amendment Effective Date, each reference in the Credit Agreement to “this
Agreement”, “hereunder”, “hereof”, “herein”, or words of like import referring
to the Credit Agreement, and each reference in the other Loan Documents to the
“Credit Agreement”, “thereunder”, “thereof”, or words of like import referring
to the Credit Agreement shall mean and be a reference to the Credit Agreement
after giving effect to this Amendment.

 

7.              Consent of Guarantors.  Each of the Loan Guarantors hereby
consents to this Amendment, and to the amendments and modifications to the
Credit Agreement pursuant hereto and acknowledges the effectiveness and
continuing validity of its obligations under or with respect to the Credit
Agreement, any Loan Guaranty, any Collateral Document and the Notes
Intercreditor Agreement, as applicable, and its liability for the Obligations or
Secured Obligations, as applicable, pursuant to the terms thereof and that such
obligations are without defense, setoff and counterclaim

 

8.              Counterparts.  This Amendment may be executed in any number of
counterparts by the parties hereto (including by facsimile or electronic
transmission), each of which counterparts when so executed shall be an original,
but all the counterparts shall together constitute one and the same instrument.

 

9.              Severability.  Any provision of this Amendment which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

10.       Integration.  This Amendment and the other Loan Documents represent
the entire agreement of the Loan Parties, the Administrative Agent, the US
Collateral Agent, the European Administrative Agent, the European Collateral
Agent, the Canadian Administrative Agent, the Canadian Collateral Agent and the
Lenders with respect to the subject matter hereof, and there are no promises,
undertakings, representations or warranties by the Administrative Agent, the
European Administrative Agent, the Canadian

 

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Administrative Agent or any Lender relative to the subject matter hereof not
expressly set forth or referred to herein or in the other Loan Documents.

 

11.       GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered by their proper and duly authorized officers as of the
day and year first above written.

 

 

BORROWERS

 

 

 

 

 

FIFTH & PACIFIC COMPANIES, INC.

 

 

 

 

 

By

/s/ Robert J. Vill

 

Name:

Robert J. Vill

 

Title:

SVP Finance and Treasurer

 

 

 

 

 

KATE SPADE CANADA INC.

 

 

 

 

 

By

/s/ Robert Fagan

 

Name:

Robert Fagan

 

Title:

Chief Financial Officer

 

 

 

 

 

KATE SPADE UK LIMITED

 

 

 

 

 

By

/s/ Robert Fagan

 

Name:

Robert Fagan

 

Title:

Chief Financial Officer

 

SIGNATURE PAGE TO THE FIRST AMENDMENT

 

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LOAN GUARANTORS:

 

 

 

ADELINGTON DESIGN GROUP, LLC

 

FIFTH & PACIFIC COMPANIES COSMETICS, INC.

 

FIFTH & PACIFIC COMPANIES FOREIGN HOLDINGS, INC.

 

FIFTH & PACIFIC COMPANIES PUERTO RICO, INC.

 

FNP HOLDINGS, LLC

 

JUICY COUTURE, INC.

 

KATE SPADE LLC

 

L.C. LICENSING, LLC

 

LCCI HOLDINGS LLC

 

LCI HOLDINGS, INC.

 

LCI INVESTMENTS, INC.

 

LUCKY BRAND DUNGAREES, INC.

 

LUCKY BRAND DUNGAREES STORES, INC.

 

WCFL HOLDINGS LLC

 

 

 

 

 

By

/s/ Robert J. Vill

 

Name:

Robert J. Vill

 

Title:

SVP Finance and Treasurer

 

 

 

 

ABG JUICY COUTURE, LLC

 

 

 

By: Juicy Couture, Inc., its sole member

 

 

 

 

 

By

/s/ Robert J. Vill

 

 

Name:

Robert J. Vill

 

 

Title:

SVP Finance and Treasurer

 

SIGNATURE PAGE TO THE FIRST AMENDMENT

 

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JUICY COUTURE EUROPE LIMITED

 

 

 

 

 

By

/s/ Thomas J. Linko

 

Name:

Thomas J. Linko

 

Title:

Director

 

SIGNATURE PAGE TO THE FIRST AMENDMENT

 

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FIFTH & PACIFIC COMPANIES CANADA INC.

 

 

 

 

 

By

/s/ Robert J. Vill

 

Name:

Robert J. Vill

 

Title:

SVP Finance and Treasurer

 

 

 

 

 

JUICY COUTURE CANADA INC.

 

 

 

 

 

By

/s/ Robert J. Vill

 

Name:

Robert J. Vill

 

Title:

SVP Finance and Treasurer

 

 

 

 

 

LUCKY BRAND DUNGAREES CANADA INC.

 

 

 

 

 

By

/s/ Robert J. Vill

 

Name:

Robert J. Vill

 

Title:

SVP Finance and Treasurer

 

 

 

 

 

WESTCOAST CONTEMPO FASHIONS LIMITED

 

 

 

 

 

By

/s/ Robert J. Vill

 

Name:

Robert J. Vill

 

Title:

SVP Finance and Treasurer

 

SIGNATURE PAGE TO THE FIRST AMENDMENT

 

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Signed and delivered as a deed for and on behalf of

 

JUICY COUTURE IRELAND LIMITED

 

 

 

By

/s/ Thomas Linko

 

Name:

Thomas Linko

 

Title:

Director

 

 

 

in the presence of:

 

 

 

/s/ Patricia Pena

 

(Witness’ Signature)

 

 

 

1440 Broadway 4th Fl, New York, NY 1008

 

(Witness’ Address)

 

 

 

Administrator

 

(Witness’ Occupation)

 

SIGNATURE PAGE TO THE FIRST AMENDMENT

 

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JPMORGAN CHASE BANK, N.A., as Administrative Agent, US Collateral Agent and
Lender

 

 

 

 

 

By

/s/ Scott Troy

 

Name:

Scott Troy

 

Title:

Vice President

 

SIGNATURE PAGE TO THE FIRST AMENDMENT

 

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J.P. MORGAN EUROPE LIMITED, as European Administrative Agent and European
Collateral Agent

 

 

 

 

 

 

By

/s/ Tim Jacob

 

Name:

Tim Jacob

 

Title:

Senior Vice President

 

SIGNATURE PAGE TO THE FIRST AMENDMENT

 

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JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as Canadian Administrative Agent and
Canadian Collateral Agent

 

 

 

 

 

 

 

By

/s/ Auggie Marchetti

 

Name:

Auggie Marchetti

 

Title:

Authorized Officer

 

SIGNATURE PAGE TO THE FIRST AMENDMENT

 

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BANK OF AMERICA, N.A., as Lender

 

 

 

 

 

 

 

By

/s/ Christine Hutchinson

 

Name:

Christine Hutchinson

 

Title:

Director

 

SIGNATURE PAGE TO THE FIRST AMENDMENT

 

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Bank of America, N.A. (Canada Branch), as Lender

 

 

 

 

 

 

By

/s/ Medina Sales de Andrade

 

Name:

Medina Sales de Andrade

 

Title:

Vice President

 

SIGNATURE PAGE TO THE FIRST AMENDMENT

 

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SunTrust Bank, as Lender

 

 

 

 

 

 

By

/s/ Ryan Jones

 

Name:

Ryan Jones

 

Title:

Vice President

 

SIGNATURE PAGE TO THE FIRST AMENDMENT

 

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WELLS FARGO BANK, N.A., as Lender

 

 

 

 

 

 

By

/s/ Reza Sabahi

 

Name:

Reza Sabahi

 

Title:

Duly Authorized Signer

 

SIGNATURE PAGE TO THE FIRST AMENDMENT

 

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WELLS FARGO CAPITAL FINANCE CORPORATION CANADA, as Canadian Lender

 

 

 

 

 

 

By

/s/ Domenic Cosentino

 

Name:

Domenic Cosentino

 

Title:

Duly Authorized Signer

 

SIGNATURE PAGE TO THE FIRST AMENDMENT

 

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