Exhibit 10.1

 

FIFTH AMENDMENT TO REVOLVING CREDIT,

TRANCHE B LOAN AND SECURITY AGREEMENT

 

FIFTH AMENDMENT TO REVOLVING CREDIT, TRANCHE B LOAN AND SECURITY AGREEMENT,
dated as of March 4, 2005 (this “Amendment”), by and among MAYOR’S JEWELERS,
INC., a Delaware corporation, MAYOR’S JEWELERS OF FLORIDA, INC., a Florida
corporation, and each of the other Domestic Subsidiaries parties thereto
(collectively, the “Borrowers”), FLEET RETAIL GROUP INC. (f/k/a Fleet Retail
Finance Inc.)(“FRGI”), GMAC COMMERCIAL FINANCE LLC (successor in interest to
GMAC Business Credit, LLC) (“GMACCF”), as syndication agent (the “Syndication
Agent”), BACK BAY CAPITAL FUNDING LLC (the “Tranche B Lender” and collectively
with FRGI and GMACCF, the “Lenders”), and FLEET RETAIL GROUP INC. (f/k/a Fleet
Retail Finance Inc.), as administrative agent for itself and the Lenders (the
“Administrative Agent”).

 

WHEREAS, the Borrowers, the Lenders, and the Administrative Agent are parties to
a Revolving Credit, Tranche B Loan and Security Agreement, dated as of August
20, 2002 (as amended and in effect from time to time, the “Credit Agreement”),
pursuant to which the Lenders have extended credit to the Borrowers on the terms
and subject to the conditions set forth therein;

 

WHEREAS, the Borrowers, the Lenders, and the Administrative Agent have agreed,
on the terms and conditions set forth herein, to amend certain provisions of the
Credit Agreement; and

 

WHEREAS, capitalized terms which are used herein without definition and which
are defined in the Credit Agreement shall have the same meanings herein as in
the Credit Agreement.

 

NOW, THEREFORE, in consideration of the foregoing, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

 

§1. Amendment to Section 10 of the Credit Agreement. Section 10 of the Credit
Agreement is hereby amended by deleting Section 10.1 in its entirety and
substituting the following new Section 10.1 in lieu thereof:

 

“10.1. Capital Expenditures. The Borrowers will not make, or permit any
Subsidiary of the Borrowers to make, Capital Expenditures in any fiscal year
that exceed, in the aggregate, $5,000,000.”

 

§2. Representations and Warranties. Each of the Borrowers hereby represents and
warrants to the Administrative Agent and the Lenders as of the date hereof as
follows:

 

(a) The execution and delivery by each of the Borrowers of this Amendment and
all other instruments and agreements required to be executed and delivered by
such Borrower in connection with the transactions contemplated hereby or
referred to herein (collectively, the “Amendment Documents”), and the
performance by each of the Borrowers of any of its obligations and agreements
under the Amendment Documents and the Credit Agreement and the other Loan
Documents, as amended hereby, are within the corporate or other authority of
such Borrower, have been authorized by all necessary corporate proceedings on
behalf of such Borrower and do not and will not contravene any provision of law
or such Borrower’s charter, other incorporation or organizational papers,
by-laws or any stock provision or any amendment thereof or of any indenture,
agreement, instrument or undertaking binding upon such Borrower.

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(b) Each of the Amendment Documents, the Credit Agreement and the other Loan
Documents, as amended hereby, to which any Borrower is a party constitute legal,
valid and binding obligations of such Person, enforceable in accordance with
their terms, except as limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or affecting generally the enforcement of
creditors’ rights.

 

(c) No approval or consent of, or filing with, any governmental agency or
authority is required to make valid and legally binding the execution, delivery
or performance by the Borrowers of the Amendment Documents, the Credit Agreement
or any other Loan Documents, as amended hereby, or the consummation by the
Borrowers of the transactions among the parties contemplated hereby and thereby
or referred to herein.

 

(d) The representations and warranties contained in Section 7 of the Credit
Agreement and in the other Loan Documents were true and correct as of the date
made. Except to the extent of changes resulting from transactions contemplated
or permitted by the Credit Agreement and the other Loan Documents, changes
occurring in the ordinary course of business (which changes, either singly or in
the aggregate, have not been materially adverse) and to the extent that such
representations and warranties relate expressly to an earlier date and after
giving effect to the provisions hereof, such representations and warranties,
after giving effect to this Amendment, also are correct as of the date hereof.

 

(e) Each of the Borrowers has performed and complied in all material respects
with all terms and conditions herein required to be performed or complied with
by it prior to or at the time hereof, and as of the date hereof, after giving
effect to the provisions of this Amendment and the other Amendment Documents,
there exists no Default or Event of Default.

 

(f) Each of the Borrowers hereby acknowledges and agrees that the
representations and warranties contained in this Amendment shall constitute
representations and warranties as referred to in Section 13.1(e) of the Credit
Agreement, a breach of which shall constitute an Event of Default.

 

§3. Effectiveness. This Amendment shall become effective as of the date first
written above (the “Effective Date) upon the satisfaction of each of the
following conditions, in each case in a manner satisfactory in form and
substance to the Administrative Agent and the Lenders:

 

(a) This Amendment shall have been duly executed and delivered by each of the
Borrowers and each of the Lenders and shall be in full force and effect; and

 

(b) The Administrative Agent shall have received such other items, documents,
agreements, items or actions as the Administrative Agent may reasonably request
in order to effectuate the transactions contemplated hereby.

 

§4. Miscellaneous Provisions.

 

(a) Each of the Borrowers hereby ratifies and confirms all of its Obligations to
the Administrative Agent and the Lenders under the Credit Agreement, as amended
hereby, and the other Loan Documents, including, without limitation, the Loans,
and each of the Borrowers hereby affirms its absolute and unconditional promise
to pay to the Lenders and the Administrative Agent the Loans, reimbursement
obligations and all other amounts due or to become due and payable to the
Lenders and the Administrative Agent under the Credit Agreement and the other
Loan Documents, as amended hereby. Except as expressly amended hereby, each of
the Credit Agreement and the other Loan Documents shall continue in full force

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and effect. This Amendment and the Credit Agreement shall hereafter be read and
construed together as a single document, and all references in the Credit
Agreement, any other Loan Document or any agreement or instrument related to the
Credit Agreement shall hereafter refer to the Credit Agreement as amended by
this Amendment.

 

(b) Without limiting the expense reimbursement requirements set forth in Section
16.2 of the Credit Agreement, the Borrower agrees to pay on demand all costs and
expenses, including reasonable attorneys’ fees, of the Administrative Agent and
the Tranche B Lender incurred in connection with this Amendment.

 

(c) THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE COMMONWEALTH OF MASSACHUSETTS (WITHOUT REFERENCE TO CONFLICT OF
LAWS) AND SHALL TAKE EFFECT AS A SEALED INSTRUMENT IN ACCORDANCE WITH SUCH LAWS.

 

(d) This Amendment may be executed in any number of counterparts, and all such
counterparts shall together constitute but one instrument. In making proof of
this Amendment it shall not be necessary to produce or account for more than one
counterpart signed by each party hereto by and against which enforcement hereof
is sought.

 

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IN WITNESS WHEREOF, the undersigned have duly executed this Amendment as a
sealed instrument as of the date first set forth above.

 

MAYOR’S JEWELERS, INC. By:  

/s/ Marco Pasteris

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Name:   Marco Pasteris Title:   Group V.P., Finance MAYOR’S JEWELERS OF FLORIDA,
INC. By:  

/s/ Marco Pasteris

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Name:   Marco Pasteris Title:   Group V.P., Finance JBM RETAIL COMPANY, INC. By:
 

/s/ Marco Pasteris

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Name:   Marco Pasteris Title:   Group V.P., Finance JBM VENTURE CO., INC. By:  

/s/ Marco Pasteris

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Name:   Marco Pasteris Title:   Group V.P., Finance

MAYOR’S JEWELERS INTELLECTUAL

PROPERTY HOLDING COMPANY

By:  

/s/ Marco Pasteris

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Name:   Marco Pasteris Title:   Group V.P., Finance

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“ADMINISTRATIVE AGENT” FLEET RETAIL GROUP INC. (f/k/a Fleet Retail Finance Inc.)
By:  

/s/ Keith Vercauteren

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Name:   Keith Vercauteren Title:   Director “SYNDICATION AGENT” GMAC COMMERCIAL
FINANCE LLC By:  

/s/ Edward Hill

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Name:   Edward Hill Title:   Senior Vice President “REVOLVING CREDIT LENDERS”
FLEET RETAIL GROUP INC. (f/k/a Fleet Retail Finance Inc.) By:  

/s/ Keith Vercauteren

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Name:   Keith Vercauteren Title:   Director GMAC COMMERCIAL FINANCE LLC By:  

/s/ Edward Hill

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Name:   Edward Hill Title:   Senior Vice President “TRANCHE B LENDER” BACK BAY
CAPITAL FUNDING LLC By:  

/s/ Kristan M. O’Connor

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Name:   Kristan M. O’Connor Title:   Managing Director