EXHIBIT 10.1

 

November 17, 2015

 

Bank of America, N.A.,

as Agent

100 Federal Street

Boston, Massachusetts  02110

 

Re:  Commitment Increase Acknowledgment

 

Ladies and Gentlemen:

 

Reference is hereby made to that certain Second Amended and Restated Loan
Agreement, dated as of March 21, 2011 (as amended, restated, supplemented or
otherwise modified from time to time, the “Loan Agreement”), among The Bon-Ton
Department Stores, Inc., a Pennsylvania corporation (“Bon-Ton”), Carson Pirie
Scott II, Inc., a Florida corporation (“CPS II”), Bon-Ton Distribution, LLC, an
Illinois limited liability company (“Distribution”), McRIL, LLC, a Virginia
limited liability company (“McRIL” and, together with Bon-Ton, CPS II,
Distribution and any other person from time to time a borrower thereunder,
collectively, the “Borrowers”), each of the other Obligors party thereto, the
financial institutions party thereto from time to time as lenders (collectively,
the “Lenders”), Bank of America, N.A., a national banking association (“Bank of
America”), as administrative agent for the Lenders (in such capacity, the
“Agent”), Bank of America and General Electric Capital Corporation (“GE
Capital”), acting as co-collateral agents (in such capacity, the “Co-Collateral
Agents”), and the other parties thereto.  Any capitalized term used herein and
not defined shall have the meaning assigned to it in the Loan Agreement.

 

Pursuant to Section 2.4 of the Loan Agreement, the Borrower Agent has requested
that the Tranche A Revolver Commitments be increased from $650,000,000 to
$730,000,000 from and after the date hereof (the “Increase Effective Date”).

 

To facilitate such increase in the aggregate Tranche A Revolver Commitments,
from and after the Increase Effective Date, (i) Bank of America, an existing
Tranche A Lender under the Loan Agreement, and (ii) BMO Harris Bank, N.A. and
Fifth Third Bank, each an additional Tranche A Lender that shall have become a
party to the Loan Agreement pursuant to a joinder in the form attached hereto as
Exhibit A (each an “Increasing Lender” and collectively, the “Increasing
Lenders”), have agreed to increase or acquire, as applicable, their respective
Tranche A Revolver Commitments in the amount shown opposite such Increasing
Lender’s name on Exhibit B attached hereto.

 

Each of the Borrowers, the Guarantors, the undersigned and the Agent hereby
acknowledge and agree that (a) each of the undersigned, in its capacity as an
Increasing Lender, shall, from and after the Increase Effective Date, have a
Tranche A Revolver Commitment under the Loan Agreement in the amount shown
opposite its name on Exhibit C attached hereto, (b) as of the Increase Effective
Date, after giving effect to the

 

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Tranche A Revolver Commitment of the Increasing Lender, the aggregate Tranche A
Revolver Commitments shall be $730,000,000, (c) as of the Increase Effective
Date, Schedule 1.1(a) (Commitments of Lenders) to the Loan Agreement shall be
replaced by Schedule 1.1(a) (Commitments of Lenders) attached hereto as
Exhibit C, and (d) the Increase Effective Date shall be deemed to be the
Increase Effective Date referred to in Section 2.4 of the Loan Agreement.

 

Each of the Borrowers and Guarantors hereby represent and warrant to each of the
undersigned that, before and after giving effect to the increase contemplated
hereunder, (a) the representations and warranties contained in Section 9 of the
Loan Agreement and the other Loan Documents are true and correct in all material
respects on and as of the Increase Effective Date, except to the extent that
such representations and warranties specifically refer to an earlier date, in
which case they are true and correct in all material respects as of such earlier
date, and except that for purposes of hereof, the representations and warranties
contained in Section 9.1.8 of the Loan Agreement shall be deemed to refer to the
most recent statements furnished to Agent under the Loan Agreement, and (b) no
Default or Event of Default has occurred and is continuing.

 

As a condition to the effectiveness of the transactions contemplated under this
letter agreement, the Borrowers shall deliver to the Agent, each of the
officer’s certificates required pursuant to Section 2.4.2 of the Loan Agreement.

 

Upon the request of any Increasing Lender, the Borrowers shall issue a Tranche A
Revolver Note payable to the order of such Increasing Lender in a principal
amount equal to the amount of its Tranche A Revolver Commitment.

 

This letter agreement shall be considered a Loan Document under the Loan
Agreement.

 

This letter agreement shall be binding upon, and inure to the benefit of, the
parties hereto and their respective successors and assigns.  This letter
agreement may be executed in any number of counterparts, which together shall
constitute one instrument.  Delivery of an executed counterpart of a signature
page of this letter agreement by facsimile or electronic transmission (including
.pdf file) shall be effective as delivery of a manually executed counterpart of
this letter agreement.  This letter agreement shall be governed by, and
construed in accordance with, the law of the State of New York.

 

[Remainder of Page Left Intentionally Blank]

 

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Very truly yours,

 

 

 

INCREASING LENDERS:

 

 

 

BANK OF AMERICA, N.A.

 

 

 

 

 

By:

/s/ Roger Malouf

 

Name:

Roger Malouf

 

Title:

Director

 

Bon Ton – Signature Page to Commitment Increase Acknowledgment Letter

 

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INCREASING LENDERS (Con’t):

 

 

 

BMO HARRIS BANK, N.A.

 

 

 

 

 

By:

/s/ Quinn Heiden

 

Name:

Quinn Heiden

 

Title:

Director

 

Bon Ton – Signature Page to Commitment Increase Acknowledgment Letter

 

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INCREASING LENDERS (Con’t):

 

 

 

FIFTH THIRD BANK

 

 

 

 

 

By:

/s/ Todd S. Robinson

 

Name:

Todd S. Robinson

 

Title:

Vice President

 

Bon Ton – Signature Page to Commitment Increase Acknowledgment Letter

 

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Acknowledged and consented to as of

the date first set forth above

 

BANK OF AMERICA, N.A.,

 

as Agent

 

 

 

 

 

By:

/s/ Roger Malouf

 

Name:

Roger Malouf

 

Title:

Director

 

 

Bon Ton – Signature Page to Commitment Increase Acknowledgment Letter

 

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Acknowledged and agreed to as of

the date first set forth above

 

BORROWERS:

 

 

 

THE BON-TON DEPARTMENT STORES, INC.

 

 

 

 

 

By:

/s/ Timothy M. Strickler

 

Name:

Timothy M. Strickler

 

Title:

Senior Vice President—Corporate Controller & Treasurer

 

 

 

 

 

CARSON PIRIE SCOTT II, INC.

 

 

 

 

 

By:

/s/ Timothy M. Strickler

 

Name:

Timothy M. Strickler

 

Title:

Senior Vice President—Controller & Treasurer

 

 

 

 

 

BON-TON DISTRIBUTION, LLC

 

 

 

 

 

By:

/s/ Timothy M. Strickler

 

Name:

Timothy M. Strickler

 

Title:

Senior Vice President—Controller & Treasurer

 

 

 

 

 

MCRIL, LLC

 

 

 

 

 

By:

/s/ Timothy M. Strickler

 

Name:

Timothy M. Strickler

 

Title:

Senior Vice President—Controller & Treasurer

 

 

Bon Ton – Signature Page to Commitment Increase Acknowledgment Letter

 

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OTHER OBLIGORS:

 

 

 

THE BON-TON STORES, INC.

 

 

 

 

 

By:

/s/ Timothy M. Strickler

 

Name:

Timothy M. Strickler

 

Title:

Senior Vice President—Corporate Controller & Treasurer

 

 

 

 

 

 

 

THE BON-TON GIFTCO, LLC

 

 

 

 

 

By:

/s/ Timothy M. Strickler

 

Name:

Timothy M. Strickler

 

Title:

President & Treasurer

 

 

Bon Ton – Signature Page to Commitment Increase Acknowledgment Letter

 

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EXHIBIT A

 

[         ], 20[   ]

 

Bank of America, N.A.,

as Agent

100 Federal Street

Boston, Massachusetts  02110

 

Re: Joinder Agreement

 

Ladies and Gentlemen:

 

Reference is hereby made to that certain Second Amended and Restated Loan
Agreement, dated as of March 21, 2011 (as amended, restated, supplemented or
otherwise modified from time to time, the “Loan Agreement”), among The Bon-Ton
Department Stores, Inc., a Pennsylvania corporation (“Bon-Ton”), Carson Pirie
Scott II, Inc., a Florida corporation (“CPS II”), Bon-Ton Distribution, LLC, an
Illinois limited liability company (“Distribution”), McRIL, LLC, a Virginia
limited liability company (“McRIL” and, together with Bon-Ton, CPS II,
Distribution and any other person from time to time a borrower thereunder,
collectively, the “Borrowers”), each of the other Obligors party thereto, the
financial institutions party thereto from time to time as lenders (collectively,
the “Lenders”), Bank of America, N.A., a national banking association (“Bank of
America”), as administrative agent for the Lenders (in such capacity, the
“Agent”), Bank of America and General Electric Capital Corporation (“GE
Capital”), acting as co-collateral agents (in such capacity, the “Co-Collateral
Agents”), and the other parties thereto.  Any capitalized term used herein and
not defined shall have the meaning assigned to it in the Loan Agreement.

 

Pursuant to Section 2.4 of the Loan Agreement, the Borrower Agent has requested
that the Tranche A Revolver Commitments be increased from $650,000,000 to
$730,000,000 from and after the date hereof (the “Increase Effective Date”).

 

To facilitate such increase in the aggregate Tranche A Revolver Commitments, the
undersigned hereby confirms that it has agreed to become a party to the Loan
Agreement as a new Tranche A Lender with a Tranche A Revolver Commitment of
$[          ].

 

The undersigned hereby (a) acknowledges that it has received a copy of the Loan
Agreement, the schedules and exhibits thereto and all amendments thereto,
together with copies of the most recent financial statements delivered by the
Borrowers pursuant to the Loan Agreement, and such other documents (including,
without, limitation, such other Loan Documents) and information as it has deemed
appropriate to make its own credit and legal analysis and decision to become a
Tranche A Lender under the Loan Agreement; and (b) agrees that it will,
independently and without reliance upon the Agent or any other Lender and based
on such documents and information as it shall deem

 

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appropriate at the time, continue to make its own credit and legal decisions in
taking or not taking action under the Loan Agreement.

 

The undersigned represents and warrants that (i) it is duly organized and
existing and it has full power and authority to take, and has taken, all action
necessary to execute and deliver this letter agreement (this “Agreement”) and to
consummate the transactions contemplated hereby and to become a Tranche A Lender
under the Loan Agreement; and (ii) no notices to, or consents, authorizations or
approvals of, any Person are required (other than any already given or obtained)
for its due execution and delivery of this Agreement or the performance of its
obligations as a Tranche A Lender under the Loan Agreement.

 

The undersigned agrees to execute and deliver such other instruments, and take
such other actions, as the Agent or the Borrowers may reasonably request in
connection with the transactions contemplated by this Agreement.

 

The following administrative details apply to the undersigned:

 

(A)                               Notice Address:

 

Legal Name:  [        ]

Address:                   [         ]

[         ]

 

Attention:  [          ]

Telephone:  [          ]

 

(B)                               Payment Instructions:

 

Account No.:  [         ]

At:  [         ]

ABA No.:  [          ]

Account Name:  [          ]

Reference:  [        ]

 

The undersigned acknowledges and agrees that on the Increase Effective Date, the
undersigned shall become a Lender under the Loan Agreement with a Tranche A
Revolver Commitment and the undersigned (a) will be bound by the terms of the
Loan Agreement as fully and to the same extent as if the undersigned were an
original Lender under the Loan Agreement and (b) will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

 

This Agreement shall be considered a Loan Document under the Loan Agreement.

 

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This Agreement shall be binding upon, and inure to the benefit of, the parties
hereto and their respective successors and assigns.  This Agreement may be
executed in any number of counterparts, which together shall constitute one
instrument.  Delivery of an executed counterpart of a signature page of this
Agreement by facsimile or electronic transmission (including .pdf file) shall be
effective as delivery of a manually executed counterpart of this Agreement. 
This Agreement shall be governed by, and construed in accordance with, the law
of the State of New York.

 

[Remainder of Page Left Intentionally Blank]

 

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Very truly yours,

 

 

 

[NAME OF LENDER]

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

Bon Ton – Signature Page to Lender Joinder

 

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Acknowledged and consented to as of

 

the date first set forth above:

 

 

 

BANK OF AMERICA, N.A.,

 

as Agent

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

 

Bon Ton – Signature Page to Lender Joinder

 

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Acknowledged and agreed to as of

 

the date first set forth above:

 

 

 

BORROWERS:

 

 

 

THE BON-TON DEPARTMENT STORES, INC.

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

 

 

CARSON PIRIE SCOTT II, INC.

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

 

 

BON-TON DISTRIBUTION, LLC

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

 

 

MCRIL, LLC

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

 

Bon Ton – Signature Page to Lender Joinder

 

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OTHER OBLIGORS:

 

 

 

THE BON-TON STORES, INC.

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

 

 

THE BON-TON GIFTCO, LLC

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

 

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EXHIBIT B

 

TRANCHE A REVOLVER COMMITMENT INCREASE ALLOCATIONS

 

Increasing Lender

 

Allocation of Tranche A
Revolver Commitment Increase

 

Total:

 

$

80,000,000.00

 

 

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EXHIBIT C

 

Schedule 1.1(a)

 

Commitments of Lenders

 

Lenders

 

Tranche A Revolver
Commitments

 

Tranche A-1 Revolver
Commitments

 

Total:

 

$

730,000,000.00

 

$

100,000,000.00

 

 

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