EX-10.1 FIRST AMENDMENT TO CREDIT LOAN AGREEMENT



 







FIRST AMENDMENT TO SECOND RESTATED REVOLVING CREDIT LOAN AGREEMENT




     THIS FIRST AMENDMENT TO SECOND RESTATED REVOLVING CREDIT LOAN AGREEMENT dated as of June 23,
2005, by and among BANK OF AMERICA, N.A., (“Lender”) and CHICO’S FAS, INC., a Florida corporation
(“FAS”), CHICO’S RETAIL SERVICES, INC., a Florida Corporation, formerly known as Chico’s
Distribution, Inc., a Florida corporation (“Retail”), PAZO, INC., a Florida Corporation (“Pazo”),
WHITE HOUSE | BLACK MARKET, INC., a Florida Corporation (“White House”), SOMA BY CHICO’S, LLC, a
Florida limited liability company (“Soma”), CHICO’S DISTRIBUTION SERVICES, LLC, a Georgia limited
liability company, formerly known as Chico’s Real Estate, LLC, a Georgia limited liability company
(“Real Estate”) and FITAPPCO, INC., a Florida corporation (“FitAppCo”) (individually “Obligor” and
collectively, “Obligors”) is made this May 15, 2006.



BACKGROUND




     WHEREAS, Obligors have requested that Lender modify the existing revolving credit facility of
$45,000,000.00 to change the mechanics for extensions of the Revolving Credit Loan Maturity Date on
a rolling basis beyond the existing maximum Revolving Credit Loan Maturity Date of June 1, 2008;
and



     WHEREAS, the existing revolving credit facility is reflected in that certain Second Restated
Revolving Credit Loan Agreement dated as of June 23, 2005 (the “Agreement”); and



     WHEREAS, Lender has agreed to modify the revolving credit facility, conditioned upon terms and
conditions acceptable to Lender.



     WHEREAS, Obligors and Lender desire to set forth the mutually agreed upon amended terms and
conditions to the Agreement.



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


1. The following Definitions under Section 1.1 of the Agreement are hereby amended as follows:




     “Revolving Credit Advance Term” shall mean the period commencing on June 23, 2005 and ending
on the Revolving Credit Loan Maturity Date.



     “Revolving Credit Loan Maturity Date” shall mean the date of the final payment is due under
the Revolving Credit Note. The “Initial Revolving Credit Loan Maturity Date” shall be June 1, 2008
and the Revolving Credit Loan Maturity Date may be extended as provided for pursuant to Section 2.4
f (each an “Extended Revolving Credit Loan Maturity Date”).


2. Paragraph d of Section 2.2 of the Agreement is amended to read:




     d. No Letter of Credit or Acceptance may have an expiration date later than five (5) Business
Days prior to the applicable Revolving Credit Loan Maturity Date. Each drawing under a Letter of
Credit or Acceptance (each an “L/C Advance”), shall be payable by Obligors, without demand or
notice of any kind, in full, on the date the beneficiary of the Letter of Credit or Acceptance
draws on such Letter of Credit or presents such Acceptance. Notwithstanding the foregoing, if for
any



 









 







reason, Lender issues a Letter of Credit whose expiration date extends beyond the applicable
Revolving Credit Loan Maturity Date, upon the applicable Revolving Credit Loan Maturity Date,
Obligors shall provide cash collateral for the Letter of Credit as provided in Section 8.7.


3. Paragraph f of Section 2.4 of the Agreement is amended to read:




     f. Principal on the Revolving Credit Note is due in full in a single payment on the Initial
Revolving Credit Loan Maturity Date.



     (1) Notwithstanding the foregoing, on June 1, 2007, Lender will automatically extend the
Revolving Credit Loan Maturity Date for an additional one year from the Initial Revolving Credit
Loan Maturity Date of June 1, 2008 to June 1, 2009 (such extended date being the first “Extended
Revolving Credit Loan Maturity Date”) unless either: (a) at least fifteen (15) days prior to June
1, 2007 (the date which is one year preceding the Initial Revolving Credit Loan Maturity Date),
Lender notifies Obligors that the Revolving Credit Note will not be renewed or FAS advises Lender
that the Revolving Credit Note should not be renewed; or (b) any Obligor is then in default under
any Note or any of the Loan Documents; or (c) Lender has previously refused, consistent with the
terms of this Agreement, to make any additional Advances or reduced the availability of Advances
under the Revolving Credit Note; or (d) FAS has previously given written notice to Lender,
consistent with subparagraph (3) of this Section 2.4 f., directing that the Revolving Credit Loan
Maturity Date be accelerated.



     (2) Following the extension of the Initial Revolving Credit Loan Maturity Date, Lender shall
annually thereafter, beginning on June 1, 2008, automatically further extend the Revolving Credit
Loan Maturity Date by an additional one year (each new Revolving Credit Loan Maturity Date is an
“Extended Revolving Credit Loan Maturity Date”) unless either: (a) at least fifteen (15) days prior
to June 1 of the year preceding the then next applicable Extended Revolving Credit Loan Maturity
Date, Lender notifies Obligors that the Revolving Credit Note will not be renewed or FAS advises
Lender that the Revolving Credit Note should not be renewed; or (b) any Obligor is then in default
under any Note or any of the Loan Documents; or (c) Lender has previously refused, consistent with
the terms of this Agreement, to make any additional Advances or reduced the availability of
Advances under the Revolving Credit Note; or (d) FAS has previously given written notice to Lender,
consistent with subparagraph (3) of this Section 2.4 f., directing that the Revolving Credit Loan
Maturity Date be accelerated.



     (3) At any time prior to the Revolving Credit Loan Maturity Date, FAS may elect, in its sole
discretion, by giving written notice of same to Lender, to accelerate the Revolving Credit Loan
Maturity Date to a date (the “Accelerated Revolving Credit Loan Maturity Date”) which is prior to
the then effective Revolving Credit Loan Maturity Date and which is the later of (a) thirty (30)
days following the date of delivery of such written notice of FAS’ election or (b) fifteen (15)
days following the latest expiration date of all Letters of Credit and Acceptances outstanding on
the date of delivery of such written notice of FAS’ election.



     If Lender, in its sole discretion, elects not to extend the Revolving Credit Note or if FAS,
in its sole discretion, advises Lender that the Revolving Credit should not be renewed, Lender will
not be obligated to make any further advances thereunder after the then next applicable Revolving
Credit Loan Maturity Date, and provided that no Obligor is in default under any Note or any of the
Loan Documents, Obligors will pay the entire balance outstanding under the Revolving Credit Note by
the then next applicable Revolving Credit Loan Maturity Date. If any Obligor is in default under
any Note or any of the Loan Documents, then after expiration of any applicable notice and grace
periods, Lender may demand payment of the balance outstanding under all Notes in full immediately.



 









 





     If FAS, in its sole discretion, consistent with subparagraph (3) of this Section 2.4 f.,
elects to accelerate the Revolving Credit Loan Maturity Date to an Accelerated Revolving Credit
Loan Maturity Date, Lender will not be obligated to make any further advances thereunder after the
designated Accelerated Revolving Credit Loan Maturity Date, and provided that no Obligor is in
default under any Note or any of the Loan Documents, Obligors will pay the entire balance
outstanding under the Revolving Credit Note by the Accelerated Revolving Credit Loan Maturity Date.
If any Obligor is in default under any Note or any of the Loan Documents, then after expiration of
any applicable notice and grace periods, Lender may demand payment of the balance outstanding under
all Notes in full immediately.



     The Revolving Credit Note notwithstanding, Obligors shall repay such outstanding advances as
are necessary to reduce the outstanding principal balance thereunder to the extent necessary so as
not to exceed the Revolving Credit Loan Ceiling.


4. FitAppCo shall be added as an Obligor for all purposes of the Agreement and the Loan Documents
and, as required by the Agreement, shall execute and deliver a Guaranty to Lender.



5. Each Obligor acknowledges that they have no claims of offset or defenses to the Indebtedness and
hereby confirm that there has been no Event of Default under the Agreement or the Loan Documents.
Each Obligor waives any and all claims of offset or defenses to the Loan Documents and the
Indebtedness as a condition to the extension of the additional credit by Lender hereunder.



6. These covenants shall be deemed supplemental to the covenants contained within the original
Agreement unless they expressly conflict with such covenants in which event these provisions shall
prevail.



7. In all other respects, Obligors and Lender hereby ratify and confirm the terms and conditions of
the Agreement.




SIGNATURES APPEAR ON THE NEXT SUCCEEDING PAGE





 









 





     IN WITNESS WHEREOF, the parties hereto have executed or caused this First Amendment to
be executed as of the day and year first above written.






Signed Sealed and Delivered in the

Presence of:




	 	 	 	 	 
	 	 	 
	 	/s/ Sherry Terzian 	 
	 	Print name:	  Sherry Terzian 	 
	 	Witness as to All 	 
	 






	 	 	 	 	 
	 	CHICO’S FAS, INC.,

A FLORIDA CORPORATION

 	 
	 	By:  	/s/ Charles J. Kleman 	 
	 	Print Name:  	Charles J. Kleman 	 
	 	Its  	Exec. Vice Pres.-Finance, CFO & Treasurer 	 
	 
	 	CHICO’S RETAIL SERVICES, INC.,

A FLORIDA CORPORATION, f/k/a

Chico’s Distribution, Inc., a Florida corporation

 	 
	 	By:  	/s/ Charles J. Kleman 	 
	 	Print Name:  	Charles J. Kleman 	 
	 	Its  	Exec. Vice Pres.-Finance 	 
	 
	 	WHITE HOUSE | BLACK MARKET, INC.,

A FLORIDA CORPORATION,

 	 
	 	By:  	/s/ Charles J. Kleman 	 
	 	Print Name:  	Charles J. Kleman 	 
	 	Its 	Exec. Vice Pres.-Finance 	 
	 
	 	SOMA BY CHICO’S, LLC,

A FLORIDA LIMITED LIABILITY COMPANY

 	 
	 	By:  	/s/ Charles J. Kleman 	 
	 	 	Print Name:  	Charles J. Kleman 	 
	 	Its  	Exec. Vice Pres.-Finance 	 
	 
	 	CHICO’S DISTRIBUTION SERVICES, LLC,

A GEORGIA LIMITED LIABILITY COMPANY

f/k/a Chico’s Real Estate, LLC,

a Georgia limited liability company

 	 
	 	By:  	/s/ Charles J. Kleman 	 
	 	Print Name:  	Charles J. Kleman 	 
	 	Its 	Exec. Vice Pres.-Finance 	 
	 










	 	 	 	 	 
	 	 	 
	/s/ Patricia Hausle 	 
	Print name: 	Patricia Hausle 	 
	Witness as to all 	 
	 
	 	 	 
	/s/ Becky Roberts 	 
	Print name: 	Becky Roberts 	 
	 	 	 
	 
	 	 	 
	/s/ Patricia L. Klein 	 
	Print name: 	Patricia L. Klein 	 
	 	 	 
	 






	 	 	 	 	 
	 	FITAPPCO, INC.,

A FLORIDA CORPORATION,

 	 
	 	By:  	/s/ Charles J. Kleman 	 
	 	Print Name:  	Charles J. Kleman 	 
	 	Its  	Exec. Vice Pres.-Finance 	 
	 
	 	BANK OF AMERICA, N.A.
 	 
	 	By:  	/s/ Meriem L. Blevins 	 
	 	Meriem L. Blevins, Sr. Vice President