Document:

Supplemental Indenture

 Exhibit 10.01 
  

  
 LESLIE’S POOLMART, INC., 
 as Issuer, 
  
 AND 
  
 THE BANK OF NEW YORK, 
 as Trustee

  

  
 SUPPLEMENTAL INDENTURE 
  
 Dated as of January 11, 2005 
  

  
 with respect to: 
  
 10 3/8% Senior Notes due 2008 
  

  

 1 

 SUPPLEMENTAL INDENTURE, dated as of January 11, 2005 (the “Supplemental Indenture”) between
Leslie’s Poolmart, Inc., a Delaware corporation (the “Company”) and The Bank of New York, as Trustee (the “Trustee”), for the Company’s 10 3/8% Senior Notes due 2008 (the “Notes”). 
  
 WHEREAS, the Company and the Trustee heretofore executed and delivered an Indenture, dated as of May 21, 2003, between the Company and the Trustee (the
“Indenture”), under which the Notes in the aggregate principal amount of $59,495,000 were issued and of which $59,495,000 are currently outstanding. 
  
 WHEREAS, the Company has offered to purchase all of the Notes (the “Tender Offer”) and has solicited the
consents (the “Consent Solicitation”) to certain amendments to the Indenture pursuant to the Company’s Offer to Purchase and Consent Solicitation Statement dated December 23, 2004. 
  
 WHEREAS, Section 9.02 of the Indenture provides that the Company and the
Trustee may amend or supplement the Indenture with the consent of the Holders of a majority in aggregate principal amount of the Notes then outstanding (including consents obtained in connection with a tender offer for the Notes). 
  
 WHEREAS, in accordance with Section 9.02 of the Indenture, the Company has
obtained the written consent to the proposed amendments to the Indenture from the Holders of at least a majority in aggregate principal amount of the Notes currently outstanding. 
  
 WHEREAS, the Company is authorized to enter into this Supplemental Indenture by a resolution of the Board of Directors of
the Company, and the Trustee has received an Opinion of Counsel and an Officers’ Certificate stating that the execution of this Supplemental Indenture is permitted by the Indenture and all conditions precedent under the Indenture have been
satisfied. 
  

 2 

 NOW, THEREFORE, for and in consideration of the foregoing premises, it is mutually covenanted and
agreed, for the equal and proportionate benefit of all Holders of the Notes, as follows: 
  
 ARTICLE ONE 
  
 Section
1.1. Subject to the provisions of Section 2.1 hereof, the following Sections of the Indenture are deleted in their entirety: 
  

			
	Section 4.03 —	  	the covenant entitled “Limitation on Restricted Payments,”
		
	Section 4.04 —	  	the covenant entitled “Limitation on Incurrence of Additional Indebtedness,”
		
	Section 4.05 —	  	the covenant entitled “Corporate Existence,”
		
	Section 4.06 —	  	the covenant entitled “Payment of Taxes and Other Claims,”
		
	Section 4.07 —	  	the covenant entitled “Maintenance of Properties and Insurance,”
		
	Section 4.08 —	  	the covenant entitled “Compliance Certificate; Notice of Default,”
		
	Section 4.10 —	  	the covenant entitled “Commission Reports,”
		
	Section 4.12 —	  	the covenant entitled “Limitation on Transactions with Affiliates,”
		
	Section 4.13 —	  	the covenant entitled “Conduct of Business,”
		
	Section 4.14 —	  	the covenant entitled “Limitation on Dividend and Other Payment Restrictions Affecting Subsidiaries,”
		
	Section 4.15 —	  	the covenant entitled “Limitation on Liens,”
		
	Section 4.18 —	  	the covenant entitled “Limitation on Preferred Stock of Subsidiaries,”
		
	Section 5.01 —	  	the covenant entitled “Merger, Consolidation and Sale of Assets,”
		
	Section 6.01 —	  	the Events of Default set forth in clauses (c), (d) and (e),
		
	Section 8.01(d) —	  	the conditions to Legal Defeasance and Covenant Defeasance set forth in clauses (3), (4), (5), (6), (7), (8), and (9).

  
 Section 1.2. Subject
to Section 2.1, any definitions used exclusively in the deleted provisions of the Indenture set forth in Section 1.1, and all references to such deleted provisions, are hereby deleted in their entirety from the Indenture. 
  
 ARTICLE TWO 
  
 Section 2.1 Effective Date of This Supplemental Indenture. 

 
 This Supplemental Indenture shall be effective as of the date first
written above. The terms of this Supplemental Indenture will become operative only upon acceptance for purchase by the Company of at least a majority in aggregate principal amount of outstanding Notes validly tendered (and not validly withdrawn)
pursuant to the terms of the Tender Offer. 
  
 Section 2.2
Indenture Ratified. 
  
 Except as hereby otherwise
expressly provided, the Indenture, as modified by this Supplemental Indenture, is in all respects ratified and confirmed, and all the terms, provisions and conditions thereof shall be and remain in full force and effect. 
  

 3 

 Section 2.3 Counterparts. 
  
 This Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such
counterparts shall together constitute but one and the same instrument. 
  
 Section 2.4 Trustee Not Responsible. 
  
 The
recitals contained herein shall be taken as the statements of the Company and the Trustee assumes no responsibility for their correctness. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture.

  
 Section 2.5 Definitions and Terms. 
  
 Unless otherwise defined herein, all capitalized terms used but not defined
herein shall have the meanings assigned to such terms in the Indenture. 
  
 Section 2.6 Supplemental Indenture is an Indenture. 
  
 This Supplemental Indenture is an amendment to and implementation of the Indenture, and the Indenture and this Supplemental Indenture shall be read together from and after the effectiveness of this Supplemental Indenture. 
  
 Section 2.7 Governing Law. 
  
 This Supplemental Indenture shall be governed by and construed in accordance
with the laws of the State of New York. 
  
 [Remainder of Page
Intentionally Left Blank] 
  
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed
as of the day and year first above written. 
  

			
	THE COMPANY:
	
	LESLIE’S POOLMART, INC.
		
	By:	 	 /s/ Lawrence Hayward

	Name:	 	Lawrence Hayward
	Title:	 	Chief Executive Officer

  

			
	Attest:	 	 /s/ Donald J. Anderson

	 	 	Donald J. Anderson,
	 	 	 Executive Vice President,
 Chief Financial Officer and
Secretary

  

			
	THE TRUSTEE:
	
	THE BANK OF NEW YORK,
	as Trustee
		
	By:	 	 /s/ Daren M. DiNicola

	Name:	 	Daren M. DiNicola
	Title:	 	Authorized Signatory

  

 5Amended and Restated Employment Agreement (Donald J. Anderson)

 Exhibit 10.02 
  
 AMENDMENT NO. 1 TO AMENDED AND RESTATED 
  
 EMPLOYMENT AGREEMENT 
  
 This Amendment No. 1 dated as of January 19, 2005 (“Amendment”) to the Amended and Restated Employment Agreement dated as of November 21, 2003
(the “Agreement”) is by and between Leslie’s Poolmart Inc. (“LPM”) and Donald J. Anderson (“Mr. Anderson”). 
  
 Recitals 
  
 1. LPM is entering into an Agreement and Plan of Merger (the “Merger Agreement”) substantially concurrently with this Amendment. The
transactions contemplated by the Merger Agreement (the “Merger”) have raised certain issues under the Agreement. 
  
 2. As a result of the Merger Agreement, and subject to the consummation of the Merger, the parties desire to amend the Agreement. 
  
 Agreement 
  
 1. Extension of Notice Period. LPM and Mr. Anderson agree that notwithstanding the provisions of clause (ii) of the
definition of “Good Reason” in the Agreement, and unless the parties otherwise mutually agree in writing, Mr. Anderson will not be required nor permitted to give written notice of his election to terminate his employment prior to August 1,
2005 nor later than September 30, 2005. In the event Mr. Anderson gives written notice to LPM of his election to terminate his employment during the period August 1 through and including September 30, 2005, and if and only if Mr. Anderson has
continued to provide his services to LPM through the date of such notice and until the effective date of his termination as contemplated in the next sentence, he will be entitled to receive the benefits described in Section 5 of the Agreement,
calculated as if such notice had been given on the date of the execution of the Merger Agreement. For avoidance of doubt, such benefits would include the pro rata portion of the current-year bonus to which Mr. Anderson would be entitled if his
employment continued through LPM’s 2005 fiscal year, payable in accordance with the Agreement Mr. Anderson agrees to give no less than 30 days advance notice of his election to terminate his employment, and to continue to provide services
as contemplated by Section 2 of the Agreement until the effective date of such termination of employment. 
  
 2. Effect of Amendment. In the event Mr. Anderson does not provide notice of his election to terminate his employment for “Good Reason”
during the period described in Section 1 of this Amendment, Mr. Anderson agrees that he will have waived his ability to so terminate his employment and to receive benefits under Section 5 of the Agreement in connection with the Merger, and that his
employment will continue to be governed by the Agreement. In the event the Merger is not consummated, Mr. Anderson will continue to have all of the rights contemplated by the Agreement in connection with a future Change of Control as defined
therein. 

 3. Non-competition. Mr. Anderson agrees that for a period ending on the second anniversary of the
effective date of the Merger, and contingent upon such effectiveness, Mr. Anderson will not, directly or indirectly, engage in a business that is competitive with the Business of LPM. The term “Business of LPM” shall mean the production,
manufacture, repair or sale of swimming pool supply products. Mr. Anderson will be deemed to be engaged in a business that is competitive with the Business of LPM if he engages in such business as an employee, officer, consultant or independent
contractor, or owns, manages, operates, joins or controls or participates in the ownership, management or control of any other person or entity which is engaged in the Business of LPM in any State of the United States of America in which LPM does
business; provided, however, that Mr. Anderson will not be deemed to engage in any of the businesses of any publicly-traded company solely by reason of his or his family’s ownership of less than 2% of the outstanding publicly traded securities
of such publicly-traded company. In addition, Mr. Anderson agrees that during the period contemplated by this Section 3 of this Amendment, the provisions of Section 9 of the Agreement will also be in force, notwithstanding the one-year term such
Section 9 currently contemplates. 
  
 4. General. This
Amendment will be governed, and any dispute arising hereunder will be resolved, in the manner contemplated by Section 7 of the Agreement. 
  
 IN WITNESS WHEREOF, the parties have executed his Amendment as of the date set forth above. 
  

			
	LESLIE’S POOLMART INC.
		
	By:	 	 /s/ Lawrence H. Hayward

	Name:	 	Lawrence H. Hayward
	Title:	 	Chief Executive Officer
		
	 	 	 /s/ Donald J. Anderson

	 	 	Donald J. Anderson

  

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