Document:

exv4w3

 

EXHIBIT 4.3

SIMILARITY
VECTOR TECHNOLOGIES (SIVTECH) LIMITED

Rules of Share Option Scheme

O’DONNELL
SWEENEY

Solicitors

The
Earlsfort Centre Earlsfort Terrace

 

 

Dublin
2

TABLE
OF CONTENTS

	 
	1. ESTABLISHMENT

	 

	2. DEFINITIONS

	 

	3. ELIGIBILITY FOR PARTICIPATION

	 

	4. LIMITATIONS

	 

	5. GRANT OF OPTIONS

	 

	6. OPTION PRICE

	 

	7. PERIODS FOR EXERCISE OF OPTIONS

	 

	8. PROCEDURES ON EXERCISE OF OPTIONS

	 

	9. SALE AND LOSS OF OPTIONS AND SHARES

	 

	10. TRANSFER OF SHARES

	 

	11. DEATH, DISABILITY AND TRANSMISSION OF RIGHTS

	 

	12. MERGER, TAKEOVER OR OTHER REORGANISATION

	 

	13. BONUS ISSUES

	 

	14. RIGHTS ISSUES

	 

	15. SAME TIME FOR GRANT AND EXERCISE

	 

	16. EXCHANGE OF CERTIFICATES

	 

	17. NO SHARE ISSUES AT A DISCOUNT

	 

	18. LIQUIDATION

	 

	19. ALTERATIONS

	 

	20. OBLIGATION TO KEEP UNISSUED CAPITAL

	 

	21. TERMINATION

 

 

SIMILARITY VECTOR TECHNOLOGIES (SIVTECH) LIMITED

Share Option Scheme

Rules

	1.0	 	ESTABLISHMENT
	 
	 	 	The Scheme is established by an Ordinary Resolution of the Company passed
on 27 September 2002 and amended by a resolution of the Board and an
ordinary resolution of the Company passed on       2005. The
purpose of the Scheme is to provide for the granting of share options to Directors
and Employees of the Company, and such other persons as the Board may in its
absolute discretion decide, in accordance with the provisions of these Rules.
	 
	2.0	 	DEFINITIONS AND INTERPRETATION
	 
	2.1	 	In the Scheme the following expressions bear the following meanings:-

	 	 	 	 	 
	 

	 	the “Adoption Date”
	 	means the date on which the Scheme is
adopted by the Company;
	 
	 	 	 	 
	 

	 	“Articles”
	 	means the articles of association of the
Company as adopted from time to time;
	 
	 	 	 	 
	 

	 	the “Auditors”
	 	means the Auditors for the time being of the
Company;
	 
	 	 	 	 
	 

	 	the “Board”
	 	means the Board of Directors for the time
being of the Company or the Directors
present at a duly convened meeting of the
Directors at which a quorum is present or a
duly constituted committee of such a Board;
	 
	 	 	 	 
	 

	 	the “Company”
	 	means Similarity Vector Technologies
(Sivtech) Limited;
	 
	 	 	 	 
	 

	 	“Director”
	 	means a director for the time being of the
Company;
	 
	 	 	 	 
	 

	 	“Disability”
	 	means genuine inability to work due to
accident, ill health or mental incapacity for a
period of six months or more;
	 
	 	 	 	 
	 

	 	“Employee”
	 	means an employee of the Company;

 

 

	 	 	 	 	 
	 

	 	the “Exercise Period”
	 	means the period from the date upon which
the Option becomes an Exerciseable Option
until the Expiration Date of the Option;
	 
	 	 	 	 
	 

	 	“Exerciseable Option”
	 	means an Option, the Vesting Events
pertaining to which have been satisfied;
	 
	 	 	 	 
	 

	 	“Expiration Date”
	 	means the date specified in Rule 4.1;
	 
	 	 	 	 
	 

	 	“Fair Market Value”
	 	means the market value of the Shapes at the
date of cessation as shall be certified by a
partner of the Auditors (or if no such partner
is willing to so certify) any independent and
appropriately qualified person nominated by
a partner of the Auditors, to be, in his
opinion, the market value, or, if higher, the
Option Price paid for the Shares;
	 
	 	 	 	 
	 

	 	“Financial Period”
	 	means a twelve month period ending on
the 31st
 December;
	 
	 	 	 	 
	 

	 	“Management Agreement”
	 	means an agreement between the relevant
Participant, the Manager and the Company
pursuant to which the Manager shall hold all
shares issued upon the exercise of an
Option on behalf of the relevant Participant
in a form approved by the Board;
	 
	 	 	 	 
	 

	 	“Manager”
	 	means Sivtech Nominees Limited or any
other subsidiary of the Company designated by the
Board from time to time;
	 
	 	 	 	 
	 

	 	“Nominated Person”
	 	means a person who shall have been
nominated for the purpose of the Scheme
pursuant to Rule 3.1;
	 
	 	 	 	 
	 

	 	“Option”
	 	means an option to subscribe for Shares
granted;
	 
	 	 	 	 
	 

	 	“Option Certificate”
	 	means a certificate evidencing an Option in
the form set out in Appendix 2 hereto;
	 
	 	 	 	 
	 

	 	“Option Price”
	 	means the price at which Shares may be
subscribed on exercise of an Option (as

 

 

	 	 	 	 	 
	 

	 	 	 	same may be adjusted in accordance with
Rules 13 and 14);
	 
	 	 	 	 
	 

	 	“Participant”
	 	means any Nominated Person who is for the
time being a holder of an Option or of
Shares held pursuant to the exercise of
Option rights;
	 
	 	 	 	 
	 

	 	“Participation Agreement”
	 	means the Agreement between the
Company and a Nominated Person in the
form set out in Appendix 1 hereto under
which he agrees to be bound by the Rules
and the Articles of Association of the
Company;
	 
	 	 	 	 
	 

	 	“Qualifying IPO”
	 	means the closing of an underwritten public
offering of Ordinary Shares of the Company
on a recognised stock exchange approved
as necessary, at a public offering valuation
of not less than €40 million and with net
proceeds to the Company of not less than
€10 million;
	 
	 	 	 	 
	 

	 	the “Remuneration Committee”
	 	a remuneration committee of the Board,
established by the Board;
	 
	 	 	 	 
	 

	 	the “Rules”
	 	means these Rules as the same from time
to time may be amended and for the time
being may be in force, and reference herein
to specific rules hereof shall be construed
accordingly;
	 
	 	 	 	 
	 

	 	the “Scheme”
	 	means the Company Share Option Scheme
consisting of these presents as amended
from time to time in accordance with the
provisions in that regard herein contained;
	 
	 

	 	“Shares”
	 	means B Ordinary Shares of €0.012 each in
the capital of the Company;
	 
	 	 	 	 
	 

	 	“Transfer Notice”
	 	has the meaning ascribed thereto in the
Articles;
	 
	 	 	 	 
	 

	 	“Vesting Event”
	 	means an event as to the duration of
employment with the Company of the
Nominated Person who is the holder of the

 

 

	 	 	 	 	 
	 

	 	 	 	Share Option or the attainment of a
financial or other condition expressed to be a
Vesting Event on an Option Certificate.

	2.2	 	Any expressions in the singular shall include the plural and vice versa.
	 
	2.3	 	The headings are for ease of reference only and shall not in any way affect the
interpretation hereof.
	 
	2.4	 	Any reference to a statutory provision shall be deemed to include a reference
to any statutory modifications or re-enactment thereof.
	 
	2.5	 	Any reference in this Scheme to a “Participant” and the shares held by any
Participant shall, where the relevant shares are held by the Manager on behalf
of a Participant and the context so requires, be to the Manager and such shares held by the Manager.
	 
	3.0	 	ELIGIBILITY FOR PARTICIPATION
	 
	3.1	 	Power of Board
	 
	 	 	The Scheme is available to Directors and Employees of the Company from time to
time, and such other persons as the Board may in its absolute discretion decide, who shall
be nominated for the purpose by the Board.
	 
	3.2	 	Absolute Discretion
	 
	 	 	Subject to the provisions of Rule 3.1 the Board shall at its absolute discretion
determine whether or not a person is a Director or an Employee of the Company.
	 
	3.3	 	No Right
	 
	 	 	No person shall be entitled as of right to participate in the Scheme and the
decision as to who shall have the opportunity of participating and the extent of his
participation will, subject to the Scheme, be made by the Board in its absolute
discretion. Furthermore, no Nominated Person shall be entitled to participate in the
Scheme until he/she has entered into a Participation Agreement.
	 
	4.0	 	LIMITATIONS
	 
	4.1	 	Limit on Exercise
	 
	 	 	No Option granted under this Scheme shall be exercised more than seven
years after the date of grant of the Option.

 

 

	4.2	 	Overall Limits for Scheme at Adoption Date
	 
	 	 	The maximum number of Shares which may be issued by the Company under this Scheme shall be
2,300,000.
	 
	5.0	 	GRANT OF OPTIONS
	 
	5.1	 	Power to Grant
	 
	 	 	Subject to the provisions of Rule 5.5, the Board may on behalf of the Company grant
Options to Nominated Persons within 5 years of the Adoption Date. Each Nominated Person
shall be granted an Option over a maximum number of Shares to be fixed by the Remuneration
Committee at its discretion (subject to Rule 4.2) exercisable subject to satisfaction of
any Vesting Events set forth in the Option Certificate issued to the Nominated Person.
	 
	5.2	 	Consideration
	 
	 	 	Any Option so granted shall be conditional upon the grantee paying to the Company (on or
before such date as the Board may at its discretion specify) the consideration payable for
such Option which shall not exceed €1.00.
	 
	5.3	 	Non-Assignable
	 
	 	 	Any Options so granted shall be personal to the grantee and non-assignable, subject to
Rules 9, 11 and 12 below.
	 
	5.4	 	Participation Agreements and Certificates
	 
	 	 	As soon as practicable after nomination by the Board in accordance with Rule 3.1 each
Nominated Person shall enter into a Participation Agreement with the Company agreeing to
be bound by the Rules and the Vesting Events and the Articles of Association of the
Company from time to time and shall then receive an Option Certificate from the Company.
	 
	5.5	 	Employees with Two Years to Retirement
	 
	 	 	An Option shall not be granted to any of the persons who qualify under Rule 3.1 hereof if
any such person is within two years of the date upon which he would normally be expected
to retire.

 

 

	 
	6.0	 	OPTION PRICE

	6.1	 	The Option Price shall be at the discretion of the Board and, in any event, shall
never be less than the nominal value of the Shares which are the subject of the Option.
	 
	7.0	 	PERIODS FOR EXERCISE OF OPTIONS
	 
	7.1	 	An Option may not be exercised later than seven years after the Option was
granted. An Option shall expire immediately after the 10th anniversary of the
Adoption Date. An Option may be exercised during the Exercise Period
subject to satisfaction of any Vesting Events pertaining to it. The Board may,
at its sole discretion, prohibit a Participant from disposing of Shares granted
hereunder for a specified period of time from the date of issue to him of such
Shares and such a prohibition shall be included in the Option Certificate.
	 
	8.0	 	PROCEDURES ON EXERCISE OF OPTIONS
	 
	8.1	 	Upon the exercise of an Option in whole or in part the Participant shall serve a
notice in writing on the Company stating the number of Shares for which he
wishes to subscribe and shall at the same time deliver an executed
counterpart of a Management Agreement to the Company and pay the Option
Price as set out in the Option Certificate by way of bank draft to the Company
and shall deliver the Option Certificate to the Company. Provided that any
Vesting Events have been satisfied the Company shall issue the appropriate
number of Shares to the Manager, deliver a share certificate to the Manager,
confirm in writing to the Participant that this issue has taken place and deliver
to the Participant any appropriate balance Option Certificate.
	 
	8.2	 	All Shares issued on any exercise of an Option shall rank pari passu in all
respects with the Shares already in issue save that they will not rank for
dividends in respect of any Financial Periods already completed before the
date of issue of the Shares.
	 
	8.3	 	The Board may, at its absolute discretion, waive the obligation on any
Participant to enter into a Management Agreement and in such
circumstances, shares shall be issued under Rule 8.1 to the Participant himself.
	 
	9.0	 	SALE AND LOSS OF OPTIONS AND SHARES
	 
	9.1	 	Subject always to Rule 11 (Death, Disability and Transmission of Rights), in
the event of a Participant ceasing to be an employee or a Director, of the
Company then:-

	 	(i)	 	in the case of retirement or amicable agreement with the Board:-

	 	(1)	 	he may be required by the Board by notice in writing within 60 days of the date of such cessation to serve a Transfer Notice under
Article 13(a)(i) of the Articles in respect of any Shares issued

 

 

	 	 	 	pursuant to the Scheme, held by him, or on his behalf, at the date of
such cessation (including those held as a result of his exercise of Options in
accordance with Rule 9.1 (i) (2) below), and such Transfer Notice shall
specify Fair Market Value as the Sale Price in respect of the relevant shares
and the Company or such other person or persons as the Board may by notice in
writing to the relevant Participant designate as the Proposed Transferee
(“Sale
Price” and “Proposed Transferee” respectively having the meanings
ascribed thereto in the Articles); and
	 
	 	(2)	 	he shall be entitled, during the period of 30 days from the
date of
such cessation, to exercise all unexercised Exercisable Options
held by him on the date of such cessation; and
	 
	 	(3)	 	all unexercised Options, other than Exercisable Options, held
by
him on the date of such cessation shall expire.

	 	(ii)	 	in all other circumstances:-

	 	(1)	 	he may be required by the Board by notice in writing within
60 days
of the date of such cessation to serve a Transfer Notice under
Article 13(a)(i) of the Articles in respect of any Shares, issued
pursuant to the Scheme, held by him or on his behalf at the date of
such cessation and such Transfer Notice shall specify the nominal
value of such shares as the Sale Price and the Company or such
other person or persons as the Board may by notice in writing to the
relevant Participant designate as the Proposed Transferee (“Sale
Price” and “Proposed Transferee” respectively having the meanings
ascribed thereto in the Articles);
	 
	 	(2)	 	all unexercised Exerciseable Options held by him on the date
of
such cessation shall expire; and
	 
	 	(3)	 	all unexercised Options, other than Exercisable Options, held
by
him on the date of such cessation shall expire.

	9.2	 	Should any Participant fail to give a Transfer Notice required to be given under Rule 9.1 within 30 days of the service of notice pursuant to, as the case
may be, Rule 9.1(i) or Rule 9.1(ii) such Transfer Notice shall for the purposes of Article 13 of the Articles, be deemed
to have been given.

 

 

	10.0	 	TRANSFER OF SHARES
	 
	10.1	 	A Participant may only transfer Shares issued to him under this
Scheme in accordance with the Articles of Association of the Company.
	 
	11.0	 	DEATH, DISABILITY AND TRANSMISSION OF RIGHTS
	 
	11.1	 	In the event of a Participant ceasing to be an employee, or a Director, of the
Company by reason of death or Disability, then:-

	 	(i)	 	the personal representative or the committee (as the case may be) of
such Participant, or the Participant himself (in the case of Disability),
shall be entitled for the duration of the Scheme from the date of such
cessation, subject to Rule 4.1, to exercise all rights in respect of any
Shares the subject of this Scheme and any Exerciseable Options (which shall
include any Options which become Exerciseable pursuant to Rule 11.1 (ii)
below) held by the Participant in question on the date of cessation;
	 
	 	(ii)	 	in the event that such Participant holds unexerciseable Options on
the date of cessation, for a period of twelve months from the date of such
cessation the Participant shall continue to be treated as a Participant for
the purpose only of satisfaction of Vesting Events attaching to such
Options; and
	 
	 	(iii)	 	for the avoidance of doubt, on the expiry of twelve months from
the date of such cessation, all Options, other than Exerciseable Options,
shall expire,

but, save for this provision, the Scheme shall not permit a Nominated Person or a
Participant to transfer any rights under the Scheme.

	12.0	 	MERGER, TAKEOVER OR OTHER REORGANISATION
	 
	12.1	 	In the event that the Company is a party to a merger, takeover or other
reorganisation including but not limited to a court sanctioned compromise or
arrangement or there is a proposal to acquire the entire issued share capital of
the Company (a “Relevant Event”), or the Board considers any of such events
may occur, the Board shall be entitled (without the Participants consent unless
the Board otherwise requires) at its discretion and notwithstanding anything
contained in the Scheme:

	 	(i)	 	to request Participants to exercise vested Options held in relation to the
whole or a specified portion of the Shares to which such Options relate
and in respect of which such Options have vested and are exercisable
and within such time or times and subject to any other conditions or
limitations as the Board may at its discretion determine. If a Participant
does not comply with any such request such Options shall lapse and
cease to be exercisable upon the expiry of the time specified for

 

 

	 	 	 	exercise by the Board. The Board shall not make any request
under this clause 12.1(i) unless the terms of the Relevant Event to which such request relates provide
that Participant will receive consideration per Share specified in such request
which exceeds the Option Price payable in respect of such Share;
	 
	 	(ii)	 	to agree that outstanding Options will be assumed or substituted by the
successor company or its holding company (or ultimate parent) (or the acquiring
company or its holding company (or ultimate parent) where a takeover or other
acquisition occurs) for options which are equivalent in value and subject to
equivalent vesting periods to the Options originally granted under the Scheme but
which relate to shares in the successor company or its holding company (or ultimate
parent)(or the acquiring company or its holding company (or ultimate parent) where a
takeover or acquisition occurs);
	 
	 	(iii)	 	to arrange for the continuation by the Company of outstanding Options (if
the Company is a successor company or an acquiring company in a takeover or
acquisition);
	 
	 	(iv)	 	to make payment of a cash settlement to Participants equal, per Share in
relation to which they hold vested Options or, at the discretion of the Board,
unvested Options, to the difference between the amount to be paid for one Share or,
as the case may be, any other share in the capital of or other security issued by the
Company into which Shares may convert, under the agreement of merger, takeover or
acquisition terms and the Option Price;
	 
	 	(v)	 	to agree to accelerate the vesting and exercisability of any outstanding
Options;

and the Board may determine that any one or any combination of the above shall occur.

	13.0	 	BONUS ISSUES
	 
	13.1	 	In the event of an allotment of Shares being made to holders of Shares
credited as fully paid up and by way of capitalisation of reserves or a
consolidation or subdivision or a reduction of the share capital of the Company
each Participant shall surrender every Option held by him which has not been
entirely exercised. The Company shall grant in its place an Option at the
same total Option Price and in all other respects on identical terms in respect
of such number of Shares that the ratio between that number of Shares and
the total number of issued Shares shall be the same as the ratio between the
number of Shares to which the surrendered Option (or as the case may be the
unexercised portion thereof) related and the total number of issued Shares

 

 

	 	 	immediately prior to the said allotment by way of capitalisation of reserves or
consolidation or subdivision or reduction of the share capital of the Company.
	 
	14.0	 	RIGHTS ISSUES
	 
	14.1	 	In the event of holders of Shares being granted rights to subscribe for further
shares (such rights being related to the number of Shares held by them
respectively) the Board shall at its absolute discretion decide whether the
granting of such rights and the subscriptions made thereunder shall result in
any depletion in the value of each Share and in the event of the Board so
deciding each Participant shall be entitled to surrender every Option held by
him which has not been entirely exercised and to be granted in its place an
Option at the same total Option Price and in all other respects on identical
terms in respect of such number of Shares as shall in the opinion of the Board
be appropriate having obtained the advice of the Auditors with regard to the
said depletion in the value of each Share.
	 
	15.0	 	SAME TIME FOR GRANT AND EXERCISE
	 
	15.1	 	Any Option granted in place of a surrendered Option as aforesaid shall be
exercisable at the same times as such surrendered Option and shall for all
purposes of the Scheme be deemed (as from the date of granting thereof) to
have been granted at the same time as such surrendered Option.
	 
	16.0	 	EXCHANGE OF CERTIFICATES
	 
	16.1	 	On any surrender of an Option as aforesaid the Participant shall deliver to the
Company the Option Certificate in respect of the Option being surrendered
and the Company shall deliver in exchange an Option Certificate in respect of
the Option being granted in its place.
	 
	17.0	 	NO SHARE ISSUES AT A DISCOUNT
	 
	17.1	 	Notwithstanding anything herein contained no Option shall be granted to
subscribe for any Shares at a discount to their par value.
	 
	18.0	 	LIQUIDATION
	 
	18.1	 	In the event of a Liquidator being appointed to the Company (save in the event
of a Members’ Voluntary Winding Up) all Options shall ipso facto cease to be
exercisable and (save to the extent, if at all, that the Board may prior to such
liquidation at their absolute and uncontrolled discretion determine) Participants
shall not be entitled to damages or other compensation of any kind.

 

 

	19.0	 	ALTERATIONS
	 
	19.1	 	The Company may at any time by resolution of the Board vary, amend or revoke any
of the provisions of the Scheme in such manner as may be thought fit PROVIDED THAT:-

	 	(i)	 	the purposes of the Scheme shall not be altered;
	 
	 	(ii)	 	except with the sanction of the Company in General Meeting no alteration
shall be made to the provisions of the Scheme which would have the effect of
overriding any of the limitations specified in Rule 4 or reducing the minimum Option
Price which may be determined by the Board; and
	 
	 	(iii)	 	no such variation, amendment or revocation shall increase the amount
payable by any Participant or otherwise impose more onerous obligations on any
Participant in respect of the exercise of an Option which has already been granted.

	20.0	 	OBLIGATION TO KEEP UNISSUED CAPITAL
	 
	20.1	 	The Company shall keep unissued sufficient Shares to enable it to discharge
its obligations under the Scheme and shall take all necessary steps (including
the passing of Resolutions of the Company) to ensure that the Directors of the
Company shall, at all times, be generally and unconditionally authorised to
allot Shares pursuant to Options to Nominated Persons in accordance with the
provisions of Section 20 Companies (Amendment) Act, 1983 or any statutory
modification or re-enactment thereof.
	 
	21.0	 	TERMINATION
	 
	21.1	 	The Scheme may be terminated at any time by Ordinary Resolution of the
Company.
	 
	21.2	 	Subsequent to any termination of the Scheme under Rule 21.1 the Company
shall not grant any further Options but no such termination shall affect or
modify any subsisting rights or obligations of the Participants in respect of any
Options and notwithstanding such termination the Company shall continue to
act, administer and manage the Scheme in accordance with its terms.exv10w1

 

Exhibit 10.1

SEVENTH AMENDMENT AGREEMENT

     This Seventh Amendment Agreement (“Amendment”) is executed as of the sixth day of February,
2006, by and among Pier 1 Funding, L.L.C., a Delaware limited liability company, as transferor (the
“Transferor”), Pier 1 Imports (U.S.), Inc., a Delaware corporation, as servicer (the “Servicer”),
and Wells Fargo Bank, National Association (successor by merger to Wells Fargo Bank Minnesota,
National Association), a national banking association, as trustee (the “Trustee”).

W I T N E S S E T H:

     WHEREAS, the Transferor, the Servicer and the Trustee executed the Series 2001-1 Supplement
dated as of September 4, 2001 (as heretofore amended, the “Supplement”), to the Pooling and
Servicing Agreement dated as of February 12, 1997, among such parties (as heretofore amended, the
“Agreement;” unless otherwise defined herein, capitalized terms used herein shall have the meanings
assigned to such terms in the Agreement or the Supplement, as applicable); and

     WHEREAS, the parties hereto have agreed to amend further the Supplement on the terms and
conditions hereinafter set forth.

     NOW, THEREFORE, the parties hereto agree as follows:

     SECTION 1. Amendment of the Supplement. Effective on the date hereof and subject to
the satisfaction of the condition precedent set forth in Section 2 below, the Supplement is hereby
amended as follows:

     (a) Section 1.9(i) of the Supplement is amended and restated in its entirety
to read as follows:

          (i) a downgrade of Pier 1 Imports’ Long-Term Issuer Credit Rating
(Local Currency) to below B- by Standard & Poor’s or a downgrade of Pier 1
Imports’ corporate family rating to below B3 by Moody’s or a withdrawal by
Standard & Poor’s of its rating of Pier 1 Imports’ Long-Term Issuer Credit
Rating (Local Currency) or a withdrawal by Moody’s of its rating of Pier 1
Imports’ corporate family;

     (b) Section 4.18(a) of the Supplement is amended and restated in its entirety
to read as follows:

          Notwithstanding anything to the contrary in the Agreement or this
Series Supplement, if at any time (i) the rating of Pier 1’s Long-Term
Issuer Credit Rating (Local Currency) shall be reduced below BB by Standard
& Poor’s or Pier 1 Imports’ corporate family rating shall be reduced below
Ba2 by Moody’s or withdrawn by Moody’s or Standard & Poor’s or (ii) any
Insolvency Event shall have occurred, the Transferor and the Servicer shall,
within thirty (30) days following the occurrence of such event, instruct
each retail outlet to which payments by Obligors in respect of Receivables
may be made to segregate such payments from other funds held by such retail
outlet and to remit such payments, within two (2) days following receipt
thereof, directly to the Collection Account; provided,
however, that the Transferor and the Servicer shall not be obligated
to so instruct such retail outlets if prior to the date such instructions
are required to be given, a letter of credit or cash collateral account
meeting the applicable requirements specified in the definition of Store
Payment Enhancement shall have been issued or established, as applicable,
for the benefit of the Trustee on behalf of the Class A Certificateholders; provided, further, that if any
institution

 

 

that has issued such a letter of credit or with which such a
cash collateral account is maintained shall cease to be an Eligible Store
Payment Enhancement Institution, then within thirty (30) days after becoming
aware of such fact the Transferor and the Servicer shall either (i) replace
such letter of credit or cash collateral account with a new letter of credit
or cash collateral account meeting the applicable requirements specified in
the definition of Store Payment Enhancement or (ii) instruct each retail
outlet to which payments by Obligors in respect of Receivables are made to
segregate such payments from other funds held by such retail outlet and to
remit such payments, within two (2) days following receipt thereof, directly
to the Collection Account.

     SECTION 2. Condition Precedent. This Amendment shall become effective as of the date
hereof upon the execution of this Amendment by all of the parties hereto and the execution and
delivery of the Consent to Amendment to Supplement attached hereto.

     SECTION 3. Miscellaneous.

     3.1 Ratification. As amended hereby, the Supplement is in all respects ratified and
confirmed and the Supplement as so supplemented by this Amendment shall be read, taken and
construed as one and the same instrument.

     3.2 Representation and Warranty. Each of the Transferor and the Servicer represents
and warrants that this Amendment has been duly authorized, executed and delivered by it and
constitutes its legal, valid and binding obligation, enforceable in accordance with its terms,
except as such enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent
transfer, moratorium or other similar laws affecting creditors’ rights generally and by general
principles of equity (regardless of whether such enforceability is considered in a proceeding at
law or in equity).

     3.3 Governing Law; Parties; Severability. This Amendment shall be governed by and
construed in accordance with the laws and decisions (as opposed to the conflicts of law provisions)
of the State of New York. Whenever in this Amendment there is a reference made to any of the
parties hereto, such reference shall also be a reference to the successors and assigns of such
party, including, without limitation, any debtor-in-possession or trustee. The provisions of this
Amendment shall be binding upon and shall inure to the benefit of the successors and assigns of the
parties hereto. Whenever possible, each provision of this Amendment shall be interpreted in such a
manner as to be effective and valid under applicable law, but if any provision of this Amendment
shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the
extent of such prohibition or invalidity without invalidating the remainder of such provision or
the remaining provisions of this Amendment.

     3.4 Counterparts. This Amendment may be executed in one or more counterparts, each
of which shall be deemed to be an original, but all of which together shall constitute one and the
same instrument.

 

 

     IN WITNESS WHEREOF, the Transferor, the Servicer and the Trustee have caused this Amendment to
be fully executed by their respective officers as of the day and year first above written.

	 	 	 
	 

	 	PIER 1 FUNDING, L.L.C.,
	 

	 	  Transferor
	 
	 	 
	 

	 	By                                        
	 

	 	Name:
	 

	 	Title:
	 
	 	 
	 

	 	PIER 1 IMPORTS (U.S.), INC.,
	 

	 	  Servicer
	 
	 	 
	 

	 	By                                        
	 

	 	Name:
	 

	 	Title:
	 
	 	 
	 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION

(successor by merger to Wells Fargo Bank

Minnesota, National Association),
	 

	 	  Trustee
	 
	 	 
	 

	 	By                                        
	 

	 	Name:
	 

	 	Title:

[Consent to Amendment to Supplement Attached]

 

 

CONSENT TO AMENDMENT TO SUPPLEMENT

     The undersigned, constituting the Majority Investors under and as defined in the Certificate
Purchase Agreement dated as of September 4, 2001 (as heretofore amended, the “Purchase Agreement”),
among Pier 1 Funding, L.L.C., as the transferor, Pier 1 Imports (U.S.), Inc., as the servicer, the
Class A Purchasers named therein and JPMorgan Chase Bank, N.A. (as successor to Morgan Guaranty
Trust Company of New York), as the administrative agent, hereby consent to the terms and conditions
of the Seventh Amendment Agreement dated as of February 6, 2006, among Pier 1 Funding, L.L.C., as
transferor, Pier 1 Imports (U.S.), Inc., as servicer, and Wells Fargo Bank, National Association
(successor by merger to Wells Fargo Bank Minnesota, National Association), as trustee, relating to
the Series 2001-1 Supplement dated as of September 4, 2001, as heretofore amended, among the same
parties.

	 	 	 
	 

	 	PARK AVENUE RECEIVABLES COMPANY,

LLC (as successor to Delaware Funding

Company, LLC), as the sole Structured Investor
	 
	 	 
	 

	 	By JPMorgan Chase Bank, N.A., as attorney-in-fact
	 
	 	 
	 

	 	By:                                        
	 

	 	            Name:
	 

	 	            Title:
	 
	 	 
	 

	 	JPMORGAN CHASE BANK, N.A., as the sole

Committed Investor
	 
	 	 
	 

	 	By:                                        
	 

	 	            Name:
	 

	 	            Title:

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