Document:

Exhibit 10.2

 

MOMENTA PHARMACEUTICALS, INC.

 

2004 EMPLOYEE STOCK PURCHASE PLAN

(as amended and restated)

 

The purpose of this Plan is to provide eligible employees of Momenta Pharmaceuticals, Inc. (the “Company”) and certain of its subsidiaries with opportunities to purchase shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), commencing on the date on which the Securities and Exchange Commission (the “SEC”) declares a registration statement on Form S-1 for the initial public offering (the “IPO”) of the Company’s Common Stock effective (the “Effective Date”).  An aggregate of 1,024,652 shares of Common Stock have been approved for this purpose.  This Plan is intended to qualify as an “employee stock purchase plan” as defined in Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations promulgated thereunder, and shall be interpreted consistent therewith.

 

1.                                      Administration.  The Plan will be administered by the Company’s Board of Directors (the “Board”) or by a Committee appointed by the Board (the “Committee”).  The Board or the Committee has authority to make rules and regulations for the administration of the Plan and its interpretation and decisions with regard thereto shall be final and conclusive.

 

2.                                      Eligibility.  All employees of the Company, including Directors who are employees, and all employees of any subsidiary of the Company (as defined in Section 424(f) of the Code) designated by the Board or the Committee from time to time (a “Designated Subsidiary”), are eligible to participate in any one or more of the offerings of Options (as defined in Section 9) to purchase Common Stock under the Plan provided that:

 

(a)                                 they are customarily employed by the Company or a Designated Subsidiary for more than 20 hours a week and for more than five (5) months in a calendar year; and

 

(b)                                 they have been employed by the Company or a Designated Subsidiary for at least ninety (90) days prior to enrolling in the Plan; and

 

(c)                                  they are employees of the Company or a Designated Subsidiary on the first day of the applicable Plan Period (as defined below).

 

No employee may be granted an option hereunder if such employee, immediately after the option is granted, owns 5% or more of the total combined voting power or value of the stock of the Company or any subsidiary.  For purposes of the preceding sentence, the attribution rules of Section 424(d) of the Code shall apply in determining the stock ownership of an employee, and all stock which the employee has a contractual right to purchase shall be treated as stock owned by the employee.

 

3.                                      Offerings.  The Company will make one or more offerings (“Offerings”) to employees to purchase stock under this Plan.  Offerings will begin each February 1, or the first business day thereafter (the “Offering Commencement Dates”).  Each Offering Commencement Date will begin a twelve-month period (a “Plan Period”) during which payroll deductions will be

 

 

made and held for the purchase of Common Stock at the end of the Plan Period.  The Board or the Committee may, at its discretion, choose a different Plan Period of twelve (12) months or less for subsequent Offerings.  Notwithstanding anything to the contrary, the first Plan Period shall begin on the first date that the Common Stock is publicly traded following the Company’s IPO and shall end on January 31, 2005.

 

4.                                      Participation.  An employee eligible on the Offering Commencement Date of any Offering may participate in such Offering by completing and forwarding a payroll deduction authorization form to the employee’s appropriate payroll office at least ten (10) days prior to the applicable Offering Commencement Date.  The form will authorize a regular payroll deduction from the Compensation received by the employee during the Plan Period.  Unless an employee files a new form or withdraws from the Plan, his deductions and purchases will continue at the same rate for future Offerings under the Plan as long as the Plan remains in effect.  The term “Compensation” means the amount of money reportable on the employee’s Federal Income Tax Withholding Statement, excluding overtime, shift premium, incentive or bonus awards, allowances and reimbursements for expenses such as relocation allowances for travel expenses, income or gains on the exercise of Company stock options or stock appreciation rights, and similar items, whether or not shown on the employee’s Federal Income Tax Withholding Statement, but including, in the case of salespersons, sales commissions to the extent determined by the Board or the Committee.

 

5.                                      Deductions.  The Company will maintain payroll deduction accounts for all participating employees.  With respect to any Offering made under this Plan, an employee may authorize a payroll deduction in any dollar amount up to a maximum of 15% of the Compensation he or she receives during the Plan Period or such shorter period during which deductions from payroll are made.  The minimum payroll deduction is such percentage of compensation as may be established from time to time by the Board or the Committee.

 

6.                                      Deduction Changes.  An employee may decrease or discontinue his payroll deduction once during any Plan Period, by filing a new payroll deduction authorization form.  However, an employee may not increase his payroll deduction during a Plan Period.  If an employee elects to discontinue his payroll deductions during a Plan Period, but does not elect to withdraw his funds pursuant to Section 8 hereof, funds deducted prior to his election to discontinue will be applied to the purchase of Common Stock on the Exercise Date (as defined below).

 

7.                                      Interest.  Interest will not be paid on any employee accounts, except to the extent that the Board or the Committee, in its sole discretion, elects to credit employee accounts with interest at such per annum rate as it may from time to time determine.

 

8.                                      Withdrawal of Funds.  An employee may at any time prior to the close of business on the last business day in a Plan Period and for any reason permanently draw out the balance accumulated in the employee’s account and thereby withdraw from participation in an Offering.  Partial withdrawals are not permitted.  The employee may not begin participation again during the remainder of the Plan Period.  The employee may participate in any subsequent Offering in accordance with terms and conditions established by the Board or the Committee.

 

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9.                                      Purchase of Shares.  On the Offering Commencement Date of each Plan Period, the Company will grant to each eligible employee who is then a participant in the Plan an option (“Option”) to purchase on the last business day of such Plan Period (the “Exercise Date”), at the Option Price hereinafter provided for, the largest number of whole shares of Common Stock of the Company as does not exceed the number of shares determined by multiplying $2,083 by the number of full months in the Offering Period and dividing the result by the closing price (as defined below) on the Offering Commencement Date of such Plan Period.

 

Notwithstanding the above, no employee may be granted an Option (as defined in Section 9) which permits his rights to purchase Common Stock under this Plan and any other employee stock purchase plan (as defined in Section 423(b) of the Code) of the Company and its subsidiaries, to accrue at a rate which exceeds $25,000 of the fair market value of such Common Stock (determined at the Offering Commencement Date of the Plan Period) for each calendar year in which the Option is outstanding at any time.

 

The purchase price for each share purchased will be 85% of the closing price of the Common Stock on (i) the first business day of such Plan Period or (ii) the Exercise Date, whichever closing price shall be less.  Such closing price shall be (a) the closing price on any national securities exchange on which the Common Stock is listed, (b) the closing price of the Common Stock on the Nasdaq National Market or (c) the average of the closing bid and asked prices in the over-the-counter-market, whichever is applicable, as published in The Wall Street Journal; provided, however, that, with respect to the first Plan Period, the closing price on the Offering Commencement Date shall be the initial public offering price provided for in the underwriting agreement entered into by the Company in connection with the IPO.  If no sales of Common Stock were made on such a day, the price of the Common Stock for purposes of clauses (a) and (b) above shall be the reported price for the next preceding day on which sales were made.

 

Each employee who continues to be a participant in the Plan on the Exercise Date shall be deemed to have exercised his Option at the Option Price on such date and shall be deemed to have purchased from the Company the number of full shares of Common Stock reserved for the purpose of the Plan that his accumulated payroll deductions on such date will pay for, but not in excess of the maximum number determined in the manner set forth above.

 

Any balance remaining in an employee’s payroll deduction account at the end of a Plan Period will be automatically refunded to the employee, except that any balance which is less than the purchase price of one share of Common Stock will be carried forward into the employee’s payroll deduction account for the following Offering, unless the employee elects not to participate in the following Offering under the Plan, in which case the balance in the employee’s account shall be refunded.

 

10.                               Issuance of Certificates.  Certificates representing shares of Common Stock purchased under the Plan may be issued only in the name of the employee, in the name of the employee and another person of legal age as joint tenants with rights of survivorship, or (in the Company’s sole discretion) in the name of a brokerage firm, bank or other nominee holder designated by the employee.  The Company may, in its sole discretion and in compliance with

 

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applicable laws, authorize the use of book entry registration of shares in lieu of issuing stock certificates.

 

11.                               Rights on Death or Termination of Employment.  In the event of a participating employee’s termination of employment prior to the last business day of a Plan Period, no payroll deduction shall be taken from any pay due and owing to an employee and the balance in the employee’s account shall be paid to the employee or, in the event of the employee’s death, (a) to a beneficiary previously designated in a revocable notice signed by the employee (with any spousal consent required under state law) or (b) in the absence of such a designated beneficiary, to the executor or administrator of the employee’s estate or (c) if no such executor or administrator has been appointed to the knowledge of the Company, to such other person(s) as the Company may, in its discretion, designate.  If, prior to the last business day of the Plan Period, the Designated Subsidiary by which an employee is employed shall cease to be a subsidiary of the Company, or if the employee is transferred to a subsidiary of the Company that is not a Designated Subsidiary, the employee shall be deemed to have terminated employment for the purposes of this Plan.

 

12.                               Optionees Not Stockholders.  Neither the granting of an Option to an employee nor the deductions from his pay shall constitute such employee a stockholder of the shares of Common Stock covered by an Option under this Plan until such shares have been purchased by and issued to him.

 

13.                               Rights Not Transferable.  Rights under this Plan are not transferable by a participating employee other than by will or the laws of descent and distribution, and are exercisable during the employee’s lifetime only by the employee.

 

14.                               Application of Funds.  All funds received or held by the Company under this Plan may be combined with other corporate funds and may be used for any corporate purpose.

 

15.                               Adjustment in Case of Changes Affecting Common Stock.  In the event of a subdivision of outstanding shares of Common Stock, or the payment of a dividend in Common Stock, the number of shares approved for this Plan, and the share limitation set forth in Section 9, shall be increased proportionately, and such other adjustment shall be made as may be deemed equitable by the Board or the Committee.  In the event of any other change affecting the Common Stock, such adjustment shall be made as may be deemed equitable by the Board or the Committee to give proper effect to such event.

 

16.                               Merger.  If the Company shall at any time merge or consolidate with another corporation and the holders of the capital stock of the Company immediately prior to such merger or consolidation continue to hold at least 80% by voting power of the capital stock of the surviving corporation (“Continuity of Control”), the holder of each Option then outstanding will thereafter be entitled to receive at the next Exercise Date upon the exercise of such Option for each share as to which such Option shall be exercised the securities or property which a holder of one share of the Common Stock was entitled to upon and at the time of such merger or consolidation, and the Board or the Committee shall take such steps in connection with such merger or consolidation as the Board or the Committee shall deem necessary to assure that the provisions of Section 15 shall thereafter be applicable, as nearly as reasonably may be, in

 

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relation to the said securities or property as to which such holder of such Option might thereafter be entitled to receive thereunder.

 

In the event of a merger or consolidation of the Company with or into another corporation which does not involve Continuity of Control, or of a sale of all or substantially all of the assets of the Company while unexercised Options remain outstanding under the Plan, (a) subject to the provisions of clauses (b) and (c), after the effective date of such transaction, each holder of an outstanding Option shall be entitled, upon exercise of such Option, to receive in lieu of shares of Common Stock, shares of such stock or other securities as the holders of shares of Common Stock received pursuant to the terms of such transaction; or (b) all outstanding Options may be cancelled by the Board or the Committee as of a date prior to the effective date of any such transaction and all payroll deductions shall be paid out to the participating employees; or (c) all outstanding Options may be cancelled by the Board or the Committee as of the effective date of any such transaction, provided that notice of such cancellation shall be given to each holder of an Option, and each holder of an Option shall have the right to exercise such Option in full based on payroll deductions then credited to his account as of a date determined by the Board or the Committee, which date shall not be less than ten (10) days preceding the effective date of such transaction.

 

17.                               Amendment of the Plan.  The Board may at any time, and from time to time, amend this Plan in any respect, except that (a) if the approval of any such amendment by the stockholders of the Company is required by Section 423 of the Code, such amendment shall not be effected without such approval, and (b) in no event may any amendment be made which would cause the Plan to fail to comply with Section 423 of the Code.

 

18.                               Insufficient Shares.  In the event that the total number of shares of Common Stock specified in elections to be purchased under any Offering plus the number of shares purchased under previous Offerings under this Plan exceeds the maximum number of shares issuable under this Plan, the Board or the Committee will allot the shares then available on a pro rata basis.

 

19.                               Termination of the Plan.  This Plan may be terminated at any time by the Board.  Upon termination of this Plan all amounts in the accounts of participating employees shall be promptly refunded.

 

20.                               Governmental Regulations.  The Company’s obligation to sell and deliver Common Stock under this Plan is subject to listing on a national stock exchange or quotation on the Nasdaq National Market (to the extent the Common Stock is then so listed or quoted) and the approval of all governmental authorities required in connection with the authorization, issuance or sale of such stock.

 

21.                               Governing Law.  The Plan shall be governed by Delaware law except to the extent that such law is preempted by federal law.

 

22.                               Issuance of Shares.  Shares may be issued upon exercise of an Option from authorized but unissued Common Stock, from shares held in the treasury of the Company, or from any other proper source.

 

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23.                               Notification upon Sale of Shares.  Each employee agrees, by entering the Plan, to promptly give the Company notice of any disposition of shares purchased under the Plan where such disposition occurs within two years after the date of grant of the Option pursuant to which such shares were purchased.

 

24.                               Withholding. Each employee shall, no later than the date of the event creating the tax liability, make provision satisfactory to the Board for payment of any taxes required by law to be withheld in connection with any transaction related to Options granted to or shares acquired by such employee pursuant to the Plan.  The Company may, to the extent permitted by law, deduct any such taxes from any payment of any kind otherwise due to an employee.

 

25.                               Effective Date and Approval of Stockholders.  The Plan shall take effect on the Effective Date, subject to approval by the stockholders of the Company as required by Section 423 of the Code, which approval must occur within twelve months of the adoption of the Plan by the Board.

 

26.                               Special Provisions for First Plan Period.  The following provisions of this Section 26 shall apply with respect to the first Plan Period notwithstanding any provision of the Plan to the contrary:

 

(a)                                 Every eligible employee shall automatically become a participant in the Plan for the first Plan Period at the highest percentage of Compensation permitted under Section 5.  No payroll deductions shall be required for the first Plan Period; however, a participant may, at any time after the effectiveness of the Plan’s Registration Statement on Form S-8, elect to have payroll deductions up to the aggregate amount which would have been credited to his or her account if a deduction of fifteen percent (15%) of the Compensation which he or she received on each pay day during the first Plan Period had been made (the “Maximum Amount”) or decline to participate by filing an appropriate subscription agreement.

 

(b)                                 Upon the automatic exercise of a participant’s option on the Exercise Date for the First Plan Period, a participant shall be permitted to purchase shares with (i) the accumulated payroll deductions in his or her account, if any, (ii) a direct payment form the participant, or (iii) a combination thereof; provided, however, that the total amount applied to the purchase may not exceed the Maximum Amount.

 

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6EXHIBIT 10.1

 

FOURTH AMENDMENT TO CREDIT AGREEMENT

 

THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Fourth Amendment”), dated as of June 11, 2014, is entered into among HELEN OF TROY L.P., a limited partnership duly organized under the laws of the State of Texas (the “Borrower”), HELEN OF TROY LIMITED, a Bermuda company (“Limited”), the lenders party hereto (the “Lenders”), and BANK OF AMERICA, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender.

 

BACKGROUND

 

A.                                    The Borrower, Limited, the Lenders, and Bank of America as the Administrative Agent, Swing Line Lender and L/C Issuer are parties to that certain Credit Agreement, dated as of December 30, 2010, as amended by that certain First Amendment to Credit Agreement, dated as of January 14, 2011, that certain Second Amendment to Credit Agreement, dated as of December 15, 2011, and that certain Third Amendment to Credit Agreement, dated as of February 7, 2014 (said Credit Agreement, as amended, the “Credit Agreement”).  The terms defined in the Credit Agreement and not otherwise defined herein shall be used herein as defined in the Credit Agreement.

 

B.                                    The parties to the Credit Agreement desire to (a) increase the Aggregate Commitments to $570,000,000, and (b) make certain other amendments to the Credit Agreement.

 

C.                                    The Borrower, Limited, the Lenders and the Administrative Agent hereby agree to amend the Credit Agreement, subject to the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the covenants, conditions and agreements hereafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are all hereby acknowledged, the Borrower, Limited, the Lenders, and the Administrative Agent covenant and agree as follows:

 

1.                                      AMENDMENTS EFFECTIVE AS OF THE FOURTH AMENDMENT EFFECTIVE DATE.

 

(a)                                 Section 1.01 of the Credit Agreement is hereby amended on and as of the Fourth Amendment Effective Date by adding the following defined terms thereto in proper alphabetical order to read as follows (and such terms shall have the same meaning in this Fourth Amendment):

 

“Buyer” means Helen of Troy Texas Corporation, a Texas corporation, an Affiliate of the Borrower and a Guarantor.

 

“Fourth Amendment” means that certain Fourth Amendment to Credit Agreement, dated as of June 11, 2014, among the Borrower, Limited, the Lenders party thereto, and the Administrative Agent.

 

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“Fourth Amendment Borrowing” means the Revolving Borrowing to be made on the date of the closing of the Healthy Directions Acquisition, the proceeds of which are used in connection with the consummation of the Healthy Directions Acquisition.

 

“Fourth Amendment Document” means (a) the Fourth Amendment, (b) each Replacement Note, and (c) each other agreement (i) to which a Loan Party is a party and (ii) the delivery of such agreement is a condition to the effectiveness of the Fourth Amendment.

 

“Fourth Amendment Effective Date” means the date that all of the conditions to effectiveness set forth in Section 4 of the Fourth Amendment have been satisfied.

 

“Fourth Amendment Parties” means each of JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC, Bank of America, N.A. and Merrill Lynch, Pierce, Fenner & Smith Incorporated.

 

“Healthy Directions” means Healthy Directions, LLC, a Delaware limited liability company.

 

“Healthy Directions Acquisition” means the consummation of the transactions contemplated by the Healthy Directions Purchase Agreement, including the acquisition by the Buyer of all authorized, issued and outstanding Equity Interests of Healthy Directions.

 

“Healthy Directions Expiration Date” means the earliest of (a) August 31, 2014, (b) the date that the Healthy Directions Acquisition occurs and the Fourth Amendment Borrowing has not occurred, and (c) the termination of the Healthy Directions Purchase Agreement prior to the occurrence of the Healthy Directions Acquisition.

 

“Healthy Directions Purchase Agreement” means the final, executed copy of that certain Purchase and Sale Agreement dated June 11, 2014, by and among PH Holdco, LLC, Healthy Directions, Limited and Buyer, as may be amended from time to time.

 

“Healthy Directions Subsidiary” means an entity that is, on the Fourth Amendment Effective Date, a Subsidiary of Healthy Directions.

 

“Replacement Note” means each replacement Revolving Loan Note payable to the order of each Lender whose Commitment is increased by the Fourth Amendment, in the principal amount of such increased Commitment.

 

“Solvent” means, with respect to any Person, that the fair value of the assets of such Person is, on the date of determination, greater than the total amount of liabilities (including contingent and unliquidated liabilities) of such Person as of such date, that the present fair saleable value of the assets of such

 

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Person is, on the date of determination, not less than the amount that will be required to pay the probable liability on its debts as they become absolute and matured, and that, as of such date, such Person is able to pay all liabilities of such Person as such liabilities mature and such Person does not have unreasonably small capital with which to carry on its business.  In computing the amount of contingent obligation or other contingent or unliquidated liabilities at any time, such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability discounted to present value at rates believed to be reasonable by such Person.

 

(b)                                 The definition of “Arranger” set forth in Section 1.01 of the Credit Agreement is hereby amended on and as of the Fourth Amendment Effective Date to read as follows, and any and all references to “Arranger” regardless of whether preceded by the term “the” or otherwise shall be deemed to refer, as the context requires, to each and every party constituting an Arranger:

 

“Arranger” means, collectively, J.P. Morgan Securities LLC and Merrill, Lynch, Pierce, Fenner & Smith Incorporated, each in their capacity as a joint lead arranger and a joint bookrunner.

 

(c)                                  The definition of “Eurodollar Rate” set forth in Section 1.01 of the Credit Agreement is hereby deleted in its entirety and replaced with the following on and as of the Fourth Amendment Effective Date:

 

“Eurodollar Rate” means:

 

(a)                                 for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal to the London Interbank Offered Rate (“LIBOR”) or a comparable or successor rate, which rate is approved by the Administrative Agent and generally applied by the Administrative Agent to all other commercial loans it administers, as published by Bloomberg (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period; and

 

(b)                                 for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to LIBOR, at or about 11:00 a.m., London time, determined two Business Days prior to such date for U.S. Dollar deposits with a term of one month commencing that day;

 

provided that to the extent a comparable or successor rate is approved by the Administrative Agent in connection herewith, the approved rate shall be applied in a manner consistent with market practice; provided, further that to the extent such market practice is not administratively feasible for the Administrative Agent, such approved rate shall be applied in a manner as otherwise reasonably

 

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determined by the Administrative Agent.

 

(d)                                 The definition of “Fee Letter” set forth in Section 1.01 of the Credit Agreement is hereby amended on and after the Fourth Amendment Effective Date to read as follows, and any and all references to “Fee Letter” regardless of whether preceded by the term “the” or otherwise shall be deemed to refer, as the context requires, to each letter agreement constituting a Fee Letter:

 

“Fee Letter” means, collectively, (a) the letter agreement dated November 10, 2010, among the Borrower, the Administrative Agent and Merrill, Lynch, Pierce, Fenner & Smith Incorporated and (b) the letter agreement dated as of June 9, 2014, among the Borrower, the Arrangers, JPMorgan Chase Bank, N.A. and Bank of America, N.A.

 

(e)                                  Section 6.11 of the Credit Agreement is hereby amended on and as of the Fourth Amendment Effective Date to read as follows:

 

“6.11                  Use of Proceeds.  Use the proceeds of (a) the Credit Extension constituting the Fourth Amendment Borrowing only for the purposes contemplated by Section 5(n) of the Fourth Amendment or (b) the Credit Extensions for general corporate purposes not in contravention of any Law or of any Loan Document, including, without limitation, not in (i) violation or contravention of (A) the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto, or is in violation of any federal statute or Presidential Executive Order, including without limitation Executive Order 13224 66 Fed. Reg. 49079 (September 25, 2001) (Blocking Property and Prohibiting Transactions with Persons who Commit, Threaten to Commit or Support Terrorism), or (B) the Act or (ii) for any purpose which would breach the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, or other similar legislation in other jurisdictions.”

 

(f)                                   Section 7.02 of the Credit Agreement is hereby amended on and as of the Fourth Amendment Effective Date by (i) deleting “and” at the end of clause (l), (ii) deleting the period at the end of clause (m) and adding “; and” in lieu thereof, and (iii) adding the following at the end thereof:

 

“(n)                           subject to satisfaction of the conditions precedent in Section 5 of the Fourth Amendment, Investments constituting the acquisition by the Buyer of all of the Equity Interests of Healthy Directions in accordance with the Healthy Directions Purchase Agreement, provided if such acquisitions result in a Domestic Subsidiary being acquired having a net worth at the time of such acquisitions of more than $1,000,000 (or within ten Business Days after any such Domestic Subsidiary thereafter attains a net worth of more than $1,000,000), such Subsidiary shall, within five Business Days after such acquisition execute and deliver to the Administrative Agent (x) a Guaranty, (y) such documents of the type referred to in clauses (iv) and (v) of Section 4.01(a) and (z) a favorable

 

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opinion of counsel to such Person, in form, content and scope satisfactory to the Administrative Agent.”

 

2.                                      AMENDMENTS EFFECTIVE AS OF THE DATE OF THE FOURTH AMENDMENT BORROWING AFTER SATISFACTION OF EACH OF THE REQUIREMENTS IN SECTION 5 OF THIS FOURTH AMENDMENT.

 

(a)                                 Section 4.02 of the Credit Agreement is hereby amended on and as of the date of the Fourth Amendment Borrowing concurrently with the Fourth Amendment Borrowing after satisfaction of each of the requirements in Section 5 of this Fourth Amendment, by adding the following at the end thereof:

 

“Notwithstanding any provision of this Section 4.02, (i) the obligation of each Lender to honor the Request for Credit Extension related to the Fourth Amendment Borrowing shall be subject to satisfaction of the conditions precedent in Section 5 of the Fourth Amendment only and not any other conditions precedent, and (ii) such Request for Credit Extension shall be a representation and warranty that the conditions specified in Section 5 of the Fourth Amendment have been satisfied on and as of the date of the advance of the Fourth Amendment Borrowing and not a representation or warranty as to any other matter.”

 

(b)                                 Section 7.06(d) of the Credit Agreement is hereby amended on and as of the date of the Fourth Amendment Borrowing concurrently with the Fourth Amendment Borrowing after satisfaction of each of the requirements in Section 5 of this Fourth Amendment, to read as follows:

 

“(d)                           provided after giving effect thereto on a pro forma basis the Leverage Ratio is not greater than 2.75 to 1.00, Limited may declare or pay cash Dividends to its stockholders and make Treasury Stock Purchases; provided, however, nothing in this clause (d) shall prohibit or restrict Treasury Stock Purchases made pursuant to Limited’s employee stock option repurchase programs; and”

 

(c)                                  Section 7.11(c) of the Credit Agreement is hereby amended on and as of the date of the Fourth Amendment Borrowing concurrently with the Fourth Amendment Borrowing after satisfaction of each of the requirements in Section 5 of this Fourth Amendment, to read as follows:

 

“(c)                            Leverage Ratio.  Permit the Leverage Ratio at any time during any period of four fiscal quarters of Limited to be greater than 3.25 to 1.00.”

 

(d)                                 Schedule 2.01 to the Credit Agreement is hereby amended on and as of the date of the Fourth Amendment Borrowing concurrently with the Fourth Amendment Borrowing after satisfaction of each of the requirements in Section 5 of this Fourth Amendment, to be in the form to reflect the Commitments and Applicable Percentages of the Lenders on such date.

 

(e)                                  Exhibit E to the Credit Agreement, the Compliance Certificate, is hereby amended on and as of the date of the Fourth Amendment Borrowing concurrently with the

 

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Fourth Amendment Borrowing after satisfaction of each of the requirements in Section 5 of this Fourth Amendment, to be in the form of Exhibit E to this Fourth Amendment.

 

3.                                      REPRESENTATIONS AND WARRANTIES.  By its execution and delivery hereof, each of the Borrower and Limited represents and warrants that, as of the Fourth Amendment Effective Date:

 

(a)                                 Each Loan Party and each Subsidiary has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to execute, deliver and perform its obligations under this Fourth Amendment and each other Fourth Amendment Document to which it is a party.

 

(b)                                 The execution, delivery and performance by each Loan Party of the Fourth Amendment and each other Fourth Amendment Document to which such Person is party, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (i) contravene the terms of any of such Person’s Organization Documents; (ii) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (A) any Contractual Obligation to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; or (iii) violate any Law.  Each Loan Party and each of its Subsidiaries is in compliance with all Contractual Obligations referred to in clause (ii)(A) above except to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Effect.

 

(c)                                  No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against any Loan Party of this Fourth Amendment or any other Fourth Amendment Document.

 

(d)                                 This Fourth Amendment has been, and each other Fourth Amendment Document, when delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto.  This Fourth Amendment constitutes, and each other Fourth Amendment Document when so executed and delivered will constitute, a legal, valid and binding obligation of such Loan Party enforceable against each Loan Party that is party thereto in accordance with its terms, subject as to enforcement to any Debtor Relief Laws and general equitable principles.

 

4.                                      CONDITIONS TO EFFECTIVENESS.  This Fourth Amendment shall be effective upon satisfaction or completion of the following:

 

(a)                                 the Administrative Agent shall have received counterparts of this Fourth Amendment executed by the Required Lenders and each Lender whose Commitment is increased pursuant to this Fourth Amendment;

 

(b)                                 the Administrative Agent shall have received counterparts of this Fourth Amendment executed by the Borrower and Limited and acknowledged by each Guarantor;

 

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(c)                                  each of the conditions in Section 4.02(a) and (b) of the Credit Agreement shall have been satisfied (as if the Borrower were Borrowing the Fourth Amendment Borrowing on the Fourth Amendment Effective Date);

 

(d)                                 the Administrative Agent shall have received (i) an executed Unanimous Consent of the Board of Directors of Helen of Troy Nevada Corporation, the sole general partner of the Borrower, authorizing the execution, delivery and performance of this Fourth Amendment and the Replacement Notes by the Borrower and (ii) an executed consent or certified Resolutions of the Board of Directors of Limited authorizing the execution, delivery and performance of this Fourth Amendment by Limited;

 

(e)                                  the Administrative Agent shall have received executed copies of all documents and instruments executed in connection with the Healthy Directions Acquisition, including, without limitation, all schedules, exhibits and annexes thereto;

 

(f)                                   the Administrative Agent shall have received opinions of U.S. counsel of the Borrower and Bermuda counsel of Limited in form and substance satisfactory to the Administrative Agent;

 

(g)                                  the representations and warranties in Section 3 shall be true and correct on the Fourth Amendment Effective Date;

 

(h)                                 all invoiced fees and expenses due to the Fourth Amendment Parties and the Lenders (and to reimburse the Fourth Amendment Parties for the legal fees and expenses of Winstead PC, special counsel) prior to the Fourth Amendment Effective Date shall have been paid;

 

(i)                                     the Administrative Agent shall have received the duly executed Fee Letter; and

 

(j)                                    the Administrative Agent shall have received, in form and substance satisfactory to the Administrative Agent and its counsel, such other documents, certificates and instruments as the Administrative Agent shall reasonably require.

 

5.                                      CONDITIONS TO THE FOURTH AMENDMENT BORROWING AND THE AMENDMENTS IN SECTION 2 OF THIS FOURTH AMENDMENT.  The obligation of each Lender to honor the Request for Credit Extension for the Fourth Amendment Borrowing, and the amendments in Section 2 of this Fourth Amendment, are each subject to each the following conditions precedent:

 

(a)                                 the Administrative Agent shall have received executed copies of all documents and instruments executed in connection with the Healthy Directions Acquisition, including, without limitation, all schedules, exhibits and annexes thereto;

 

(b)                                 the Administrative Agent shall have received a certificate from the chief financial officer of the Borrower, in form and substance reasonably acceptable to the Fourth Amendment Parties, dated as of the date of the Fourth Amendment Borrowing, certifying that Limited and its Subsidiaries (including Healthy Directions and Healthy Directions Subsidiaries), on a consolidated basis after giving effect to the consummation of the Healthy Directions Acquisition,

 

7

 

the borrowing of the Fourth Amendment Borrowing and the other transactions contemplated by the Healthy Directions Purchase Agreement, are Solvent;

 

(c)                                  the Administrative Agent shall have received (i) an executed Unanimous Consent of the Board of Directors of Helen of Troy Nevada Corporation, the sole general partner of the Borrower, authorizing the Fourth Amendment Borrowing and all other related transactions and actions, (ii) an executed Resolution of the Board of Directors of Limited authorizing the Healthy Directions Acquisition, the Fourth Amendment Borrowing and all other related transactions and actions and (iii) an executed Resolution of the Board of Directors of the Buyer authorizing the Healthy Directions Acquisition and all other related transactions and actions;

 

(d)                                 on the date of the Fourth Amendment Borrowing, after giving effect to the consummation of the Healthy Directions Acquisition and the advance of the Fourth Amendment Borrowing, neither Limited nor any Subsidiary (including Healthy Directions and Healthy Directions Subsidiaries) shall have any material Indebtedness, other than Indebtedness permitted by Section 7.03 of the Credit Agreement;

 

(e)                                  the Healthy Directions Purchase Agreement executed by the Buyer shall not have been amended in any manner that is materially adverse to the interests of the Fourth Amendment Parties or the Lenders without the prior written consent of the Fourth Amendment Parties;

 

(f)                                   the Healthy Directions Acquisition shall have occurred substantially concurrently with the advance of the Fourth Amendment Borrowing in accordance with the terms of the Healthy Directions Purchase Agreement, and no provision thereof shall have been amended or waived, and no consent shall have been given thereunder, to the extent the same would be materially adverse to the interests of the Fourth Amendment Parties or the Lenders without the prior written consent of the Fourth Amendment Parties;

 

(g)                                  since December 31, 2013, there shall not have occurred a “Material Adverse Effect”.  “Material Adverse Effect” as used in this clause (g) has the meaning ascribed thereto in the Healthy Directions Purchase Agreement unless the Required Lenders have consented in writing to any changes in such definition;

 

(h)                                 the Fourth Amendment Effective Date and the consummation of the Healthy Directions Acquisition shall have occurred on or before the Healthy Directions Expiration Date;

 

(i)                                     the Administrative Agent and the Lenders shall have received, at least five days prior to the consummation of the Healthy Directions Acquisition, all documentation and other information required by Governmental Authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the Act, including information described in Section 10.16 of the Credit Agreement;

 

(j)                                    the Administrative Agent shall have received a Revolving Loan Notice in accordance with Section 2.02 of the Credit Agreement;

 

(k)                                 the Administrative Agent shall have received a duly executed Replacement Note for each Lender;

 

8

 

(l)                                     all fees and expenses (i) to be paid in accordance with the terms of that certain Fee Letter, dated as of June 9, 2014, among the Borrower and the Fourth Amendment Parties, (ii) otherwise owed to the Fourth Amendment Parties and the Lenders and (iii) in reimbursement for invoiced legal fees and expenses incurred by the Fourth Amendment Parties through the date of the Fourth Amendment Borrowing shall have been paid, or the Borrower shall have been authorized by the Administrative Agent to deduct such fees and expenses from the proceeds of the Fourth Amendment Borrowing;

 

(m)                             the conditions set forth in Section 7.2(a) of the Healthy Directions Purchase Agreement have been fulfilled in accordance with the terms of Section 7.2(a) of the Healthy Directions Purchase Agreement at or prior to the consummation of the Healthy Directions Acquisition;

 

(n)                                 the proceeds of the Fourth Amendment Borrowing will be used only to (i) pay all of the cash consideration payable by Buyer to PH Holdco, LLC in accordance with the terms of the Healthy Directions Purchase Agreement, (ii) to refinance certain existing indebtedness of Healthy Directions or its Subsidiaries and (iii) pay costs and expenses incurred by the Borrower and the Buyer in connection with the consummation of the transactions which are the subject of the Healthy Directions Purchase Agreement;

 

(o)                                 the following representations and warranties shall be true and correct on the date of the consummation of the Healthy Directions Acquisition and the borrowing of the Fourth Amendment Borrowing, both before and after giving effect to the consummation of the Healthy Directions Acquisition, the Fourth Amendment Borrowing and the use of the proceeds of the Fourth Amendment Borrowing (and deemed made by each Loan Party on such date):

 

(i)                                     the use of the proceeds of the Fourth Amendment Borrowing will not (A) violate the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto, or is in violation of any federal statute or Presidential Executive Order, including without limitation Executive Order 13224 66 Fed. Reg. 49079 (September 25, 2001) (Blocking Property and Prohibiting Transactions with Persons who Commit, Threaten to Commit or Support Terrorism), (B) the Act or (C) be used for any purpose which would breach the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, or other similar legislation in other jurisdictions;

 

(ii)                                  the performance by each Loan Party of the Fourth Amendment and each other Fourth Amendment Document to which such Person is party, has been duly authorized by all necessary corporate or other organizational action, and does not and will not (A) contravene the terms of any of such Person’s Organization Documents; (B) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (1) any Contractual Obligation to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (2) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; or (C) violate any Law.  Each Loan Party and each of its Subsidiaries is in compliance with

 

9

 

all Contractual Obligations referred to in clause (B)(1) above except to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Effect;

 

(iii)                               the execution, delivery and performance by each Loan Party of the Healthy Directions Purchase Agreement and all other documents and instruments executed in connection with the Healthy Directions Acquisition to which such Person is party, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (A) contravene the terms of any of such Person’s Organization Documents; (B) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (1) any Contractual Obligation to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (2) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; or (C) violate any Law.  Each Loan Party and each of its Subsidiaries is in compliance with all Contractual Obligations referred to in clause (B)(1) above except to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Effect;

 

(iv)                              the Credit Agreement, as amended by the Fourth Amendment, the Guaranty and the other Loan Documents, constitute, a legal, valid and binding obligation of the Loan Parties party thereto, enforceable against each Loan Party that is party thereto in accordance with its terms, subject as to enforcement to any Debtor Relief Laws and general equitable principles;

 

(v)                                 this Fourth Amendment has been, and each other Fourth Amendment Document, when delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto.  This Fourth Amendment constitutes, and each other Fourth Amendment Document when so delivered will constitute, a legal, valid and binding obligation of such Loan Party enforceable against each Loan Party that is party thereto in accordance with its terms, subject as to enforcement to any Debtor Relief Laws and general equitable principles; and

 

(vi)                              the Obligations (after giving effect to the consummation of the Healthy Directions Acquisition and the borrowing of the Fourth Amendment Borrowing) are senior Indebtedness of the Borrower and Guarantors (including Healthy Directions and Healthy Directions Subsidiaries);

 

(p)                                 the following representations and warranties in the Credit Agreement shall be true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty shall be true and correct in all respects) on the date of the consummation of the Healthy Directions Acquisition and the date of the borrowing of the Fourth Amendment Borrowing, in each case both before and after giving effect to the consummation of the Healthy Directions Acquisition, the borrowing of the Fourth Amendment Borrowing and the use of the proceeds of the Fourth Amendment Borrowing (and each such representation and warranty after giving effect to the consummation of the Healthy Directions Acquisition, the borrowing of the Fourth Amendment Borrowing and the use of the proceeds of the Fourth Amendment will include Healthy Directions and its Subsidiaries where it uses the terms “Loan

 

10

 

Party”, “Subsidiary” and “Subsidiaries”): Section 5.01, Section 5.03, Section 5.14 and Section 5.20;

 

(q)                                 the Arrangers shall have received one or more customary confidential information memoranda and other marketing material customarily used for the syndication of the Fourth Amendment and a period of 15 consecutive Business Days, excluding certain market holiday related “blackout” periods as reasonably determined by the Arrangers, shall have occurred from the date of execution of the Healthy Directions Purchase Agreement; and

 

(r)                                    the Administrative Agent shall have received an opinion of U.S. counsel of the Borrower in form reasonably acceptable to the Administrative Agent, regarding the Replacement Notes.

 

6.                                      ALLOCATION AMONG LENDERS.  Upon the effectiveness of this Fourth Amendment, the Administrative Agent shall make such transfer of funds among the Lenders as are necessary in order that the outstanding balance of the Loans on the Fourth Amendment Effective Date, together with any Loans funded on the Fourth Amendment Effective Date, reflect the respective Commitments of the Lenders hereunder after giving effect to this Fourth Amendment.  If as a result of such transfers provided for in this Section 6, any loss, cost or expense is incurred by a Lender pursuant to Section 3.05 of the Credit Agreement, the Borrower shall pay to such Lender such amounts required to be paid pursuant to such Section 3.05.

 

7.                                      COVENANTS.  Prior to the date of the Fourth Amendment Borrowing, the Borrower shall deliver a pro forma consolidated balance sheet and related pro forma consolidated statement of income of Limited and its Subsidiaries (including Healthy Directions and Healthy Directions Subsidiaries) as of and for the twelve-month period ending on the last day of the most recently completed four-fiscal quarter period ended at least 45 days prior to the date of the Fourth Amendment Borrowing, prepared after giving effect to the consummation of the Healthy Directions Acquisition, the borrowing of the Fourth Amendment Borrowing and the use of the proceeds of the Fourth Amendment Borrowing as if the Healthy Directions Acquisition and the Fourth Amendment Borrowing and the use of the proceeds of the Fourth Amendment Borrowing had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such statement of income).

 

8.                                      REFERENCE TO THE CREDIT AGREEMENT.

 

(a)                                 Upon the effectiveness of this Fourth Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, or words of like import shall mean and be a reference to the Credit Agreement, as affected and amended hereby.

 

(b)                                 The Credit Agreement, as amended by the amendments referred to above, shall remain in full force and effect and is hereby ratified and confirmed.

 

9.                                      COSTS, EXPENSES AND TAXES.  The Borrower agrees to pay on demand all reasonable costs and expenses of the Administrative Agent in connection with the preparation, reproduction, execution and delivery of this Fourth Amendment and the other instruments and documents to be delivered hereunder (including the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect thereto).

 

11

 

10.                               GUARANTOR’S ACKNOWLEDGMENT.  By signing below, (a) each Guarantor (i) acknowledges, consents and agrees to the execution, delivery and performance by the Borrower and Limited of this Fourth Amendment, (ii) acknowledges and agrees that its obligations in respect of its Guaranty (A) are not released, diminished, waived, modified, impaired or affected in any manner by this Fourth Amendment or any of the provisions contemplated herein and (B) cover the Aggregate Commitments, as increased by this Fourth Amendment, (iii) ratifies and confirms its obligations under its Guaranty, and (iv) acknowledges and agrees that it has no claims or offsets against, or defenses or counterclaims to, its Guaranty, and (b) each Guarantor, the Borrower, the Lenders and the Administrative Agent hereby agree that upon effectiveness of this Fourth Amendment, each reference in the Guaranty to “this Guaranty”, “hereunder”, or words of like import shall mean and be a reference to the Guaranty, as amended hereby.

 

11.                               EXECUTION IN COUNTERPARTS.  This Fourth Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument.  For purposes of this Fourth Amendment, a counterpart hereof (or signature page thereto) signed and transmitted by any Person party hereto to the Administrative Agent (or its counsel) by facsimile machine, telecopier or electronic mail is to be treated as an original.  The signature of such Person thereon, for purposes hereof, is to be considered as an original signature, and the counterpart (or signature page thereto) so transmitted is to be considered to have the same binding effect as an original signature on an original document.

 

12.                               GOVERNING LAW; BINDING EFFECT.  This Fourth Amendment shall be governed by and construed in accordance with the laws of the State of Texas applicable to agreements made and to be performed entirely within such state, provided that each party shall retain all rights arising under federal law, and shall be binding upon the parties hereto and their respective successors and assigns.

 

13.                               HEADINGS.  Section headings in this Fourth Amendment are included herein for convenience of reference only and shall not constitute a part of this Fourth Amendment for any other purpose.

 

14.                               ENTIRE AGREEMENT.  THE CREDIT AGREEMENT, AS AMENDED BY THIS FOURTH AMENDMENT, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL  AGREEMENTS BETWEEN THE PARTIES.  THERE ARE NO UNWRITTEN ORAL  AGREEMENTS BETWEEN THE PARTIES.

 

REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

 

12

 

IN WITNESS WHEREOF, this Fourth Amendment is executed as of the date first set forth above.

 

	
 
    	
HELEN   OF TROY L.P., a Texas limited partnership
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
HELEN   OF TROY NEVADA CORPORATION, a Nevada corporation, General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian Grass
    
	
 
    	
 
    	
Brian   Grass 
    
	
 
    	
 
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HELEN   OF TROY LIMITED, a Bermuda corporation
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian Grass
    	
 
    
	
 
    	
 
    	
Brian   Grass
    	
 
    
	
 
    	
 
    	
Chief   Financial Officer
    	
 
    

 

Signature Page to Fourth Amendment

 

 

	
 
    	
BANK   OF AMERICA, N.A., as Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Julie Castano
    
	
 
    	
 
    	
Name:
    	
Julie   Castano
    
	
 
    	
 
    	
Title:
    	
SVP
    

 

Signature Page to Fourth Amendment

 

 

	
 
    	
BANK   OF AMERICA, N.A., as a Lender, L/C Issuer and  Swing Line Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Julie Castano
    
	
 
    	
 
    	
Name:
    	
Julie   Castano
    
	
 
    	
 
    	
Title:
    	
SVP
    

 

Signature Page to Fourth Amendment

 

 

	
 
    	
JPMORGAN   CHASE BANK, N.A., as a Lender and as Syndication Agent
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lianee Fernandez
    
	
 
    	
 
    	
Name:
    	
Lianee   Fernandez
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

Signature Page to Fourth Amendment

 

 

	
 
    	
COMERICA   BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

Signature Page to Fourth Amendment

 

 

	
 
    	
HSBC   BANK USA, N.A., as a Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

Signature Page to Fourth Amendment

 

 

	
 
    	
BRANCH   BANKING AND TRUST COMPANY, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

Signature Page to Fourth Amendment

 

 

	
ACKNOWLEDGED AND AGREED PURSUANT TO   SECTION 10 ABOVE:
    
	
 
    	
 
    	
 
    
	
HELEN OF TROY L.P.,
    	
 
    
	
a Texas limited partnership
    	
 
    
	
By: 
    	
HELEN   OF TROY NEVADA CORPORATION,
    	
 
    
	
 
    	
a   Nevada corporation, General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
HELEN OF TROY LIMITED,
    	
 
    
	
a Barbados corporation
    	
 
    
	
 
    	
 
    	
 
    
	
HOT NEVADA, INC.,
    	
 
    
	
a Nevada corporation
    	
 
    
	
 
    	
 
    	
 
    
	
HELEN OF TROY NEVADA CORPORATION,
    	
 
    
	
a Nevada corporation
    	
 
    
	
 
    	
 
    	
 
    
	
HELEN OF TROY TEXAS CORPORATION,
    	
 
    
	
a Texas corporation
    	
 
    
	
 
    	
 
    	
 
    
	
IDELLE LABS LTD.,
    	
 
    
	
a Texas limited partnership
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
HELEN   OF TROY NEVADA CORPORATION,
    	
 
    
	
 
    	
a   Nevada corporation, General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
OXO INTERNATIONAL LTD.,
    	
 
    
	
a Texas limited partnership
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
HELEN   OF TROY NEVADA CORPORATION,
    	
 
    
	
 
    	
a   Nevada corporation, General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
PUR WATER PURIFICATION PRODUCTS, INC.,
    	
 
    
	
a Nevada corporation
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Brian Grass
    	
 
    
	
 
    	
Brian   Grass
    	
 
    
	
 
    	
Title   for all:     Chief Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
HELEN OF TROY MACAO COMMERCIAL OFFSHORE LIMITED,
    	
 
    
	
a Macau corporation
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Vincent D. Carson
    	
 
    
	
 
    	
Vincent   D. Carson
    	
 
    
	
 
    	
Director
    	
 
    

 

Signature Page to Fourth Amendment

 

 

KAZ, INC., 
 a New York corporation

 

KAZ CANADA, INC., 
 a Massachusetts corporation

 

KAZ USA, INC., 
 a Massachusetts corporation

 

 

	
By:
    	
/s/   Brian Grass
    	
 
    
	
 
    	
Brian   Grass
    	
 
    
	
 
    	
Title   for all: Chief Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
HELEN OF TROY LIMITED, 
    	
 
    
	
a Bermuda company
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Brian Grass
    	
 
    
	
 
    	
Brian   Grass
    	
 
    
	
 
    	
Chief   Financial Officer
    	
 
    

 

Signature Page to Fourth Amendment

 

 

EXHIBIT E

 

FORM OF COMPLIANCE CERTIFICATE

 

Financial Statement Date:                  ,       

 

To:                             Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Credit Agreement, dated as of December 30, 2010 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Helen of Troy L.P., a Texas limited partnership (the “Borrower”), Helen of Troy Limited, a Bermuda company (“Limited”), the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender.

 

The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the                                                        of Limited, and that, as such, he/she is authorized to execute and deliver this Certificate to the Administrative Agent on the behalf of Limited, and that:

 

[Use following paragraph 1 for fiscal year-end financial statements]

 

1.                                      Attached hereto as Schedule 1 are the year-end audited financial statements required by Section 6.01(a) of the Agreement for the fiscal year of Limited ended as of the above date, together with the report and opinion of an independent certified public accountant required by such section.  Such statements are fairly stated in all material respects when considered in relation to the consolidated financial statements of Limited and its Subsidiaries.

 

[Use following paragraph 1 for fiscal quarter-end financial statements]

 

1.                                      Attached hereto as Schedule 1 are the unaudited financial statements required by Section 6.01(b) of the Agreement for the fiscal quarter of the Borrower ended as of the above date.  Such financial statements fairly present the financial condition, results of operations, shareholders’ equity, and cash flows of Limited and its Subsidiaries in accordance with GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes.  Such statements are fairly stated in all material respects when considered in relation to the consolidated financial statements of Limited and its Subsidiaries.

 

2.                                      The undersigned has reviewed and is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of Limited and its Subsidiaries during the accounting period covered by the attached financial statements.

 

3.                                      A review of the activities of Limited and its Subsidiaries during such fiscal period has been made under the supervision of the undersigned with a view to determining whether during such fiscal period Limited and its Subsidiaries performed and observed all its Obligations under the Loan Documents, and

 

Exhibit E - 22

 

[select one:]

 

[to the best knowledge of the undersigned during such fiscal period, Limited and its Subsidiaries performed and observed each covenant and condition of the Loan Documents applicable to it.]

 

--or--

 

[the following covenants or conditions have not been performed or observed and the following is a list of each such Default and its nature and status:]

 

4.                                      The representations and warranties of Limited and the Borrowers contained in Article V of the Agreement, or which are contained in any document furnished at any time under or in connection with the Loan Documents, are true and correct on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Compliance Certificate, the representations and warranties contained in subsection (a) of Section 5.05 of the Agreement shall be deemed to refer to the most recent statements furnished pursuant to clause (a) of Section 6.01 of the Agreement, including the statements in connection with which this Compliance Certificate is delivered.

 

5.                                      The financial covenant analyses and information set forth on Schedule 2 attached hereto are true and accurate on and as of the date of this Certificate.

 

IN WITNESS WHEREOF, the undersigned has executed this Certificate as of                             ,                 .

 

	
 
    	
HELEN   OF TROY LIMITED, a Bermuda company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

Exhibit E - 23

 

For the Quarter/Year ended                                       (“Statement Date”)

 

SCHEDULE 2
 to the Compliance Certificate
 ($ in 000’s)

 

	
I. 
    	
Section 7.02(i) —   Acquisitions.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
(To   be completed only if Senior Leverage Ratio for fiscal quarter preceding   Acquisition is greater than 2.00 to 1.00)
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
A.                                    100% of   Consolidated EBITDA for fiscal year preceding Acquisition:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
B.                                    Aggregate   Acquisition Consideration for Acquisitions during current fiscal year:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
II.
    	
Section 7.02(m) —   Investments.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
A.                                    Aggregate amount of   investments not otherwise permitted to be made pursuant to clauses   (a) through (l) of Section 7.02:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
B.                                    Maximum (15% of line   IV.A):
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
III.
    	
Section 7.05(f) —   Dispositions.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
A.                                    Aggregate amount of EBITDA   generated by Dispositions during period of 12 consecutive months ending on   Statement Date:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
B.                                    Maximum: 15% of   Consolidated EBITDA for prior fiscal year:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
IV.
    	
Section 7.11(a) —   Intentionally Omitted.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
V. 
    	
Section 7.11 (b) —   Interest Coverage Ratio.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
A.                                    Consolidated EBIT for four   consecutive fiscal quarters ending on above date (“Subject Period”):
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
1.                                      Consolidated Net Earnings   for Subject Period:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
2.                                      To the extent deducted in   determining Consolidated Net Earnings, interest expense for Subject Period:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.                                      To the extent deducted in   determining Consolidated Net Earnings, federal and state income and franchise   tax expenses for Limited and its Subsidiaries for Subject Period:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
4.                                      To the extent deducted in   determining Consolidated Net Earnings, non-cash asset impairment charges   incurred for Subject Period:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
5.                                      To the extent deducted in   determining Consolidated Net Earnings, non-cash write-downs of goodwill or   other intangibles for Subject Period:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
6.                                      Consolidated   EBIT (Lines V.A.1 + 2 + 3 + 4 + 5): 
    	
 
    	
$
    	
 
    	
 
    

 

Exhibit E - 24

 

	
 
    	
B.                                    Interest   expense of Limited and its Subsidiaries for Subject Period:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
C.                                    Interest Coverage Ratio   (Line V.A.6)  ̧ Line V.B.):
    	
 
    	
            to   1.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Minimum required:
    	
 
    	
3.00   to 1.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
VI.
    	
Section 7.11 (c) —   Leverage Ratio.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
A.                                    Consolidated   Funded Indebtedness at Statement Date:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
B.                                    Consolidated   EBITDA for Subject Period:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
1.                                      Consolidated EBIT for   Subject Period (Line V.A.6 above):
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
2.                                      To the extent deducted in   determining Consolidated Net Earnings, depreciation and amortization expense   for Subject Period:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.                                      To the extent deducted in   determining Consolidated Net Earnings, non-cash charges for Subject Period:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
4.                                      To the extent added in   determining Consolidated Net Earnings, non-cash credits for Subject Period:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
5.                                      Consolidated EBITDA (Line   VI.B.1 + VI.B.2 + VI.B.3 — VI.B.4):
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
C.                                    Adjustment   for Acquisitions during Subject Period:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
D.                                    Adjustment for   Dispositions during Subject Period:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
E.                                     Adjusted   Consolidated EBITDA (Lines VI.B.5 + VI.C. — VI.D.):
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
F.                                      Leverage   Ratio (Line VI.A.  ̧ Line VI.E.):
    	
 
    	
            to   1.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Maximum permitted:
    	
 
    	
3.25   to 1.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
VII.
    	
Senior Leverage Ratio:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
A.                                     Consolidated   Funded Indebtedness at Statement Date:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
B.                                    Subordinated   Indebtedness at Statement Date:
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
C.                                    Senior Debt   at Statement Date (Lines VII.A — VII.B):
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
D.                                    Adjusted   Consolidated EBITDA for Subject Period (Line VI.E above):
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
E.                                     Senior   Leverage Ratio (Line VII.C  ̧ Line VII.D):
    	
 
    	
          to   1.00
    	
 
    

 

Exhibit E - 25

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00232-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00232-of-00352.parquet"}]]