Document:

Exhibit
10.29

MD BEAUTY, INC.

FIRST AMENDMENT TO TERM LOAN
AGREEMENT

This FIRST AMENDMENT TO TERM
LOAN AGREEMENT (this “Amendment”) is
dated as of July 21, 2005 and entered into by and among STB BEAUTY,
INC., a Delaware corporation (“Holdings”), MD BEAUTY, INC., a Delaware corporation (the “Company”), THE FINANCIAL INSTITUTIONS
LISTED ON THE SIGNATURE PAGES HEREOF (each individually referred to
herein as a “Lender” and collectively as “Lenders”), and BNP PARIBAS (“BNP Paribas”), as administrative agent for Lenders (in such
capacity, “Administrative Agent”), and solely
for purposes of Section 3 hereof, the Credit Support Parties (as defined in
Section 3 hereof). Reference is made to that certain Term Loan Agreement dated
as of February 18, 2005, by and among Holdings, Company, the Lenders referenced
therein and BNP Paribas, as Administrative Agent (the “Credit
Agreement”). Capitalized terms used herein without definition shall
have the same meanings as set forth in the Credit Agreement.

 

RECITALS

WHEREAS, Company
desires to amend the Credit Agreement on, and subject to, the terms, conditions and agreements set
forth herein, to (i) permit the Company to make voluntary prepayments of the
Holdings Notes, (ii) provide the Company a credit in respect of prepayments of
the Holdings Notes against the prepayments and/or reductions required under
subsection 2.4B(iii)(e) of the Credit Agreement, (iii) postpone the date on
which Company has to comply with hedging requirements under subsection 6.10 of
the Credit Agreement, and (iv) make certain other amendments as set forth
below;

NOW, THEREFORE, in consideration of the
premises and the agreements, provisions and covenants herein contained, the
parties hereto agree as follows:

 

Section 1.     AMENDMENTS TO THE CREDIT AGREEMENT

 

1.1      Amendment to Subsection 2.4: Repayments and Prepayments;
General Provisions Regarding Payments;
Application of Proceeds of Collateral and Payments Under Guaranties.

Subsection 2.4B(iii)(e) of the Credit Agreement is hereby
amended by deleting such subsection in its entirety and substituting the
following therefor:

“(e)     Prepayments from
Consolidated Excess Cash Flow. In the event that there shall be
Consolidated Excess Cash Flow for any Fiscal Year (commencing with the Fiscal
Year ending on January 1, 2006), Company shall, no later than 120 days after
the end of such Fiscal Year, prepay the Loans in an aggregate amount equal to 50% (the “Consolidated Excess Cash Flow Percentage”) of such Consolidated
Excess Cash Flow, provided, that (A)
Company shall receive a credit against any prepayments required under this
subsection (e) for any voluntary prepayment or redemption of the Holdings Notes
made in accordance with this Agreement and (B) if the calculation of such
Consolidated Excess Cash 

 

 

 

Flow
includes a deduction for voluntary prepayment of the First Lien Term Loans or Term Loans (the “Prepaid
Amount”), then (i) Consolidated Excess Cash Flow shall be deemed
increased by the Prepaid Amount for the purposes of determining prepayments
required under this subsection (e), and (ii) Company shall receive a credit
equal to the amount of the Prepaid Amount against any prepayments required
under this subsection (e) with respect to the Fiscal Year in which such
voluntary prepayment was made (such credit may not be carried forward to
subsequent years).”.

 

1.2      Amendment to Subsection
6.10: Interest Rate Protection.

Subsection 6.10 of the Credit Agreement is hereby amended
by deleting such subsection in its entirety and substituting the following
therefor:

 

“6.10     Interest Rate Protection.

At all
times after December 31, 2005, Company shall maintain in effect for three years
after the Closing Date one or more Interest Rate Agreements in an aggregate
notional principal amount of not less than 40% of the aggregate principal
amount of the Term Loans and the First Lien Term Loans outstanding, each such Interest
Rate Agreement to be in form and substance satisfactory to Administrative Agent; provided that Company shall not be obligated to
maintain in effect any such Interest Rate Agreements at any time that the
Applicable Consolidated Leverage Ratio is less than or equal to 2.00:1:00. For
purposes of clarification, while the above described Interest Rate Agreements
are required to be maintained during the above described periods, each
individual Interest Rate Agreement is not required to be of such duration.”.

 

1.3      Amendment to Subsection 7.5: Restricted Junior Payments.

Subsection 7.5 of the Credit Agreement is hereby amended by inserting
the following at the end thereof

“, and
(v) so long as no Event of Default or Potential Event of Default shall have
occurred and be continuing or shall be caused thereby, at any time on or before
July 31, 2005, Holdings may prepay or redeem the Holdings Notes and Company may
make Restricted Junior Payments to Holdings for purposes of making such
prepayment or redemption not to exceed $16,250,000.”.

 

Section 2.     LIMITED WAIVER

A.        Waiver of Restriction in
Holdings Subordination Agreement. Requisite Lenders hereby waive compliance with Section 3(a) of the Holdings
Subordination Agreement to the extent required to permit Holdings to prepay or
redeem the Holdings Notes.

B.        Limitation of Waiver. The waiver set forth herein shall be
limited precisely as written and relate solely to the prepayment of the
Holdings Notes in the manner and to the extent described above, and nothing in
this Amendment shall be deemed to (i) constitute a waiver of 

 

 

2

compliance
by Company or Holdings with respect to any other term, provision or condition
of the Credit Agreement or any other instrument or agreement referred to
therein or (ii) prejudice any right or remedy that Administrative Agent or any
Lender may now have or may have in the future under or in connection with the
Credit Agreement or any other instrument or agreement referred to therein.

 

Section 3.     ACKNOWLEDGEMENT AND CONSENT

Each of Company, Holdings and each Subsidiary Guarantor
(each individually a “Credit Support Party”
and collectively, the “Credit Support Parties”)
has read this Amendment and consents to the terms hereof and further hereby
confirms and agrees that, notwithstanding the effectiveness of this Amendment,
the obligations of such Credit Support Party under, and the Liens granted by
such Credit Support Party as collateral security for the indebtedness,
obligations and liabilities evidenced by the Credit Agreement and the other
Loan Documents pursuant to, each of the Loan Documents to which such Credit
Support Party is a party shall not be impaired and each of the Loan Documents
to which such Credit Support Party is a party is, and shall continue to be, in
full force and effect and are hereby confirmed and ratified in all respects.

Each Subsidiary Guarantor acknowledges and agrees that (i)
notwithstanding the conditions to effectiveness set forth in this Amendment,
such Credit Support Party is not required by the terms of the Credit Agreement
or any other Loan Document to consent to the amendments to the Credit Agreement
effected pursuant to this Amendment and (ii) nothing in the Credit Agreement,
this Amendment or any other Loan Document shall be deemed to require the
consent of such Credit Support Party to any future amendments to the Credit
Agreement.

 

Section 4.     CONDITIONS TO EFFECTIVENESS

Section 1 of this Amendment shall become effective only
upon the satisfaction of all of the conditions precedent (the date of
satisfaction of all such conditions precedent being referred to herein as the “First Amendment Effective Date”) set forth in this Section
4.

A.        Corporate Documents. On or before
the First Amendment Effective Date, Company shall and shall cause each other
Credit Support Party to deliver to Lenders (or to Administrative Agent for
Lenders with sufficient originally executed copies, where appropriate, for each
Lender and its counsel), with respect to Company or such other Credit Party, as
the case may be, a Secretary’s Certificate, in form and substance reasonably
satisfactory to Administrative Agent and dated the First Amendment Effective
Date, certifying that (1) the Organizational Documents of Company, (2) the
resolutions of the Board of Directors of Company and each other Credit Support
Party and (3) the signature and incumbency certificate of Company and each
other Credit Support Party, in each case, as delivered to Administrative Agent
on the Closing Date, are in full force and effect and have not been amended or modified
in any respect since the Closing Date.

B.        Fees. Administrative Agent shall
have received all of Administrative Agent’s reasonable costs and expenses as
described in subsection 10.2 of the Credit Agreement incurred 

 

3

by
Administrative Agent (including, without limitation, the reasonable fees and
disbursements of O’Melveny & Myers LLP) in connection with this Amendment
and the documents and transactions related hereto, and any fees separately
agreed upon between Company and Administrative Agent.

C.        Amendment of First Lien Credit Agreement.
Administrative Agent shall have received a First Amendment to Credit Agreement
executed by Holdings, Company, Requisite Lenders under the First Lien Credit
Agreement and BNP Paribas, as administrative agent, in form and substance
satisfactory to Administrative Agent, which amendment shall be in form
substantially similar to this Amendment.

 

Section 5.     REPRESENTATIONS AND WARRANTIES

In order to induce Lenders and Administrative Agent to
enter into this Amendment and to amend the Credit Agreement in the manner
provided herein, Company represents and warrants to Administrative Agent and
each Lender that the following statements are true, correct and complete:

A.        Authorization; Binding
Obligations. Company has all requisite
corporate power and authority to enter into this Amendment. The execution,
delivery and performance of this Amendment have been duly authorized by all
necessary corporate action by Company. This Amendment has been duly executed
and delivered by Company and is the legally valid and binding obligation of
Company, enforceable against Company in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or limiting creditors’ rights generally
and by equitable principles relating to enforceability.

B.        No Conflict. The execution and
delivery by Company of this Amendment do not and will not (i) violate any
provision of any law or any governmental rule or regulation applicable to
Company, the Organizational Documents of Company or any order, judgment or
decree of any court or other Government Authority binding on Company, (ii)
conflict with, result in a breach of or constitute (with due notice or lapse of
time or both) a default under any Contractual Obligation of Company, (iii)
result in or require the creation or imposition of any Lien upon any of the
properties or assets of Company (other than any Liens created under any of the
Loan Documents in favor of Administrative Agent on behalf of Lenders), and (iv)
require any approval of any holder of equity or any approval or consent of any
Person under any Contractual Obligation of Company, except for such approvals
or consents which will be obtained on or before the First Amendment Effective
Date and disclosed in writing to Lenders and except to the extent such
violation, conflict, Lien or failure to obtain such approval or consent could
not reasonably be expected to result in a Material Adverse Effect.

C.        Governmental Consents. The execution
and delivery by Company of this Amendment do not and will not require any
Governmental Authorization except as have been obtained.

D.        Incorporation
of Representations. Each
representation and warranty of Company contained in each of the Loan Documents
is true and correct in all material respects on 

 

4

 

and as
of the First Amendment Effective Date to the same extent as though made on and
as of the First Amendment Effective Date except to the extent such
representations and warranties relate to an earlier date, in which case they
were true and correct in all material respects as of such earlier date.

 

E.        Absence of Default.
No event has occurred and is continuing or would result from the execution,
delivery or performance of this Amendment that constitutes or would constitute
an Event of Default or a Potential Event of Default after giving effect to this
Amendment.

 

Section 6.     MISCELLANEOUS

 

A.        Reference to and Effect on the Credit
Agreement and the Other Loan Documents.

(i)         On and after the First Amendment
Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”,
“hereof”, “herein” or words of like import referring to the Credit Agreement,
and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”,
“thereof’ or words of like import referring to the Credit Agreement shall mean
and be a reference to the Credit Agreement, as amended by this Amendment.

(ii)        Except as
specifically amended by this Amendment, the Credit Agreement and the other Loan
Documents shall remain in full force and effect and are hereby ratified and
confirmed.

(iii)       The
execution, delivery and performance of this Amendment shall not, except as
expressly provided herein, constitute a waiver of any provision of, or operate
as a waiver of any right, power or remedy of Administrative Agent, or any
Lender under, the Credit Agreement or any of the other Loan Documents.

(iv)      Headings. Section and subsection headings in this Amendment are included herein
for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose or be given any substantive effect.

(v)       Applicable Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT LIMITATION
SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE
OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

(vi)      Counterparts. This 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 an original, but all such counterparts together shall constitute but one
and the same instrument; signature pages may be detached from 

 

5

 

multiple
separate counterparts and attached to a single counterpart so that all
signature pages are physically attached to the same document.

 

[Remainder of page intentionally left
blank)

 

6

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to
be duly executed and delivered by their respective officers thereunto duly
authorized as of the date first written above.

 

	
  COMPANY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MD BEAUTY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leslie A Blodgett

  
	
   

  	
  Name:

  	
  Leslie A Blodgett

  
	
   

  	
  Title:

  	
  President, Chief Executive
  Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  HOLDINGS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STB BEAUTY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leslie A Blodgett

  
	
   

  	
  Name:

  	
  Leslie A Blodgett

  
	
   

  	
  Title:

  	
  President and Chief
  Executive Officer

  

 

 

 

S-1

 

	
  CREDIT SUPPORT PARTIES:

  (for purposes of Section 3)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STB BEAUTY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leslie A Blodgett

  
	
   

  	
  Name:

  	
  Leslie A Blodgett

  
	
   

  	
  Title:

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BARE ESCENTUALS, INC.

  BIOCEUTIX INC.

  ID DIRECT, INC.

  MD BEAUTY SALES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leslie A Blodgett

  
	
   

  	
  Name:

  	
  Leslie A Blodgett

  
	
   

  	
  Title:

  	
  President, Chief Executive
  Officer and Secretary

  

 

 

 

 

S-2

 

	
  LENDERS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BNP PARIBAS,

  individually and as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Amy Kirschner

  
	
   

  	
  Name:

  	
  Amy Kirschner

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Cecile Scherer

  
	
   

  	
  Name:

  	
  Cecile Scherer

  
	
   

  	
  Title:

  	
  Director

  Merchant Banking Group

  

 

 

 

S-3

 

 

 

	
   

  	
  FOXE BASIN CLO 2003, LTD.

  By Royal Bank of Canada as Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Melissa Marano

  
	
   

  	
  Name:

  	
  Melissa Marano

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

 

S-4

 

	
   

  	
  CIBC Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Gerald Girardi

  
	
   

  	
  Name:

  	
  Gerald Girardi

  
	
   

  	
  Title:

  	
  Executive Director

  CIBC World Markets Corp., As Agent

  

 

 

S-5

 

 

 

	
   

  	
  NAVIGATOR CDO 2003, LTD

  By: Antares Asset Management Inc., as

  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steven J. Robinson

  
	
   

  	
  Name:

  	
  Steven J. Robinson

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NAVIGATOR CDO 2004, LTD

  By: Antares Asset Management Inc., as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steven J. Robinson

  
	
   

  	
  Name:

  	
  Steven J. Robinson

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIGROUP FINANCIAL PRODUCTS,
  INC.

  By: Antares Asset Management Inc., as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steven J. Robinson

  
	
   

  	
  Name:

  	
  Steven J. Robinson

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

 

 

S-6

 

	
   

  	
  FriedbergMilstein Private
  Capital Fund I

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Eric A. Green

  
	
   

  	
  Name:

  	
  Eric A. Green

  
	
   

  	
  Title:

  	
  Senior Partner

  

 

 

S-7

 

	
   

  	
  First Trust/Highland Capital
  Floating Rate Income Fund

  By: Highland Capital
  Management, L.P., As Sub-Advisor

  By: Strand Advisors, Inc., Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joe Dougherty

  
	
   

  	
  Name:

  	
  Joe Dougherty

  
	
   

  	
  Title:

  	
  Senior Portfolio Manager

  Strand Advisors, Inc., General Partner of Highland Capital Management, L.P.

  

 

 

 

S-8

 

 

	
   

  	
  Highland Floating Rate
  Advantage Fund

  By: Highland Capital Management, L.P., As Collateral Manager

  By: Strand Advisors, Inc., Its Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joe Dougherty

  
	
   

  	
  Name:

  	
  Joe Dougherty

  
	
   

  	
  Title:

  	
  Senior Vice President

  Strand Advisors, Inc., General Partner of Highland Capital Management, L.P.

  

 

 

S-9

 

	
   

  	
  Highland Floating Rate Limited
  Liability Company

  By: Highland Capital Management, L.P., As Collateral Manager

  By: Strand Advisors, Inc., Its Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joe Dougherty

  
	
   

  	
  Name:

  	
  Joe Dougherty

  
	
   

  	
  Title:

  	
  Senior Vice President

  Strand Advisors, Inc., General Partner of Highland Capital Management, L.P.

  

 

 

S-10

 

	
   

  	
  Pioneer Floating Rate Trust

  By: Highland Capital Management, L.P., Its Sub-Advisor

  By: Strand Advisors, Inc., Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joe Dougherty

  
	
   

  	
  Name:

  	
  Joe Dougherty

  
	
   

  	
  Title:

  	
  Senior Portfolio Manager

  Strand Advisors, Inc., General Partner of Highland Capital Management, L.P.

  

 

 

S-11

 

	
   

  	
  Loan Funding IV LLC

  By: Highland Capital Management, L.P., As Collateral Manager

  By: Strand Advisors, Inc., Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David W. Lancelot

  
	
   

  	
  Name:

  	
  David W. Lancelot

  
	
   

  	
  Title:

  	
  Treasurer

  Strand Advisors, Inc., General Partner of Highland Capital Management, L.P.

  

 

 

S-12

 

	
   

  	
  Loan Funding VII LLC

  By: Highland Capital Management, L.P., As Collateral Manager

  By: Strand Advisors, Inc., Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David W. Lancelot

  
	
   

  	
  Name:

  	
  David W. Lancelot

  
	
   

  	
  Title:

  	
  Treasurer

  Strand Advisors, Inc., General Partner of Highland Capital Management, L.P.

  

 

 

S-13

 

	
   

  	
  Southfork CLO, Ltd.

  By: Highland Capital Management, L.P., As Collateral Manager

  By: Strand Advisors, Inc., Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David W. Lancelot

  
	
   

  	
  Name:

  	
  David W. Lancelot

  
	
   

  	
  Title:

  	
  Treasurer

  Strand Advisors, Inc., General Partner of Highland Capital Management, L.P.

  

 

 

S-14

 

 

	
   

  	
  APOLLO DISTRESSED INVESTMENT
  OFFSHORE FUND, LTD.

  By Apollo DIF Management, L.P., its General Partner

  By Apollo DIF Management GP, LLC, its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Abraham Katz

  
	
   

  	
  Name:

  	
  Abraham Katz

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

S-15

 

 

 

	
   

  	
  APOLLO DISTRESSED INVESTMENT
  FUND (QP), L.P.

  By Apollo DIF Management, L.P., its General Partner

  By Apollo DIF Management GP, LLC, its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Abraham Katz

  
	
   

  	
  Name:

  	
  Abraham Katz

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

S-16

 

	
   

  	
  LightPoint CLO 2004-1, Ltd

  
	
   

  	
   

  
	
   

  	
  LightPoint CLO III, Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Timothy S. Van Kirk

  
	
   

  	
  Name:

  	
  Timothy S. Van Kirk

  
	
   

  	
  Title:

  	
  Managing Director

  

 

 

S-17

 

	
   

  	
  Halcyon Structured
  Opportunities Fund, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steven Mandis

  
	
   

  	
  Name:

  	
  Steven Mandis

  
	
   

  	
  Title:

  	
  Chief Investment Officer

  

 

 

S-18Exhibit
10.30

 

MD BEAUTY, INC.

 

SECOND AMENDMENT TO TERM LOAN
AGREEMENT

This SECOND AMENDMENT TO TERM
LOAN AGREEMENT  (this “Amendment”) is
dated as of October 7, 2005 and entered into by and among STB BEAUTY,
INC., a Delaware corporation (“Holdings”), MD BEAUTY, INC., a Delaware corporation (the “Company”), THE FINANCIAL INSTITUTIONS
LISTED ON THE SIGNATURE PAGES HEREOF (each individually referred to
herein as a “Lender” and collectively as “Lenders”), and BNP PARIBAS (“BNP Paribas”), as administrative agent for Lenders (in such
capacity, “Administrative Agent”), and solely
for purposes of Section 3 hereof, the Credit Support Parties (as defined
in Section 3 hereof). Reference is made to that certain Term Loan
Agreement dated as of February 18, 2005, as amended by the First Amendment to
Term Loan Agreement dated as of July 21, 2005, by and among Holdings, Company,
the Lenders referenced therein and BNP Paribas, as Administrative Agent (the “Credit Agreement”). Capitalized terms used herein without definition
shall have the same meanings as set forth in the Credit Agreement, as amended
hereby.

 

RECITALS

WHEREAS, Company and Lenders desire to
amend the Credit Agreement to (i) permit Company to incur additional First Lien
Term Loans in an aggregate principal amount of up to $96,000,000, the proceeds
of which will be used to make a dividend to the shareholders of Holdings, (ii)
enable Company to incur additional Term Loans in the aggregate principal amount
of up to $91,500,000, the proceeds of which will be used to make a dividend to
the shareholders of Holdings, (iii) postpone the date on which Company has to
comply with hedging requirements under subsection 6.10 of the Credit Agreement,
and (iv) make certain other amendments as set forth below.

NOW, THEREFORE, in consideration of the
premises and the agreements, provisions and covenants herein contained, the
parties hereto agree as follows:

 

SECTION 1.         AMENDMENTS TO CREDIT AGREEMENT

 

1.1          Amendments to Section 1.1: Certain Defined
Terms.

 

A.            Subsection 1.1 of the Credit
Agreement is hereby amended by adding thereto the

following definitions, which
shall be inserted in proper alphabetical order:

“Additional Term Loan
Commitment” means the commitment of a Lender to make or maintain
Additional Term Loans pursuant to the third sentence of subsection 2.1A and “Additional Term Loan Commitments” means such commitments of
all Lenders in the aggregate.

“Additional Term Loans” means the Term Loans made by certain
Lenders to Company on or about the Second Amendment Effective Date pursuant to
the third sentence of subsection 2.1A.

 

 

 

 

“Original Term Loan Commitment” means a Term Loan Commitment
existing on the Closing Date.

“Second Amendment” means that certain Second Amendment to
this Agreement, dated as of October 7, 2005.

“Second Amendment Effective Date” means the date the
conditions to funding the Additional Term Loans are satisfied in accordance
with the Second Amendment to this Agreement.

“First Lien Second
Amendment” means the Second Amendment to Credit Agreement dated as
of October 7, 2005 by and among Holdings, Company, the financial institutions
party thereto, and BNP Paribas, as administrative agent for Lenders.

“Special Dividend Payment”
means the application by the Company of the proceeds of the Additional Term
Loans and the additional First Lien Term Loans contemplated by the First Lien
Second Amendment on or about the Second Amendment Effective Date towards a
dividend by the Company to Holdings in an aggregate amount not to exceed
$187,500,000, which Holdings in turn shall dividend to its shareholders.

 

B.            Subsection 1.1
of the Credit Agreement is hereby further amended by deleting the definition of
the term set forth in quotation marks below and substituting therefor the
following definition:

“Consolidated Cash Interest Expense” means, for any period,
Consolidated Interest Expense for such period excluding, however,
any interest expense not payable in Cash.

“Consolidated EBITDA” means, for any period, the sum, without
duplication, of the amounts for such period of (i) Consolidated Net Income,
(ii) Consolidated Interest Expense, (iii) taxes paid or provisions for taxes
based on income, (iv) total depreciation expense, (v) total amortization
expense, (vi) other non-cash items (including, without limitation, non-cash effect
of any purchase accounting, write-down of intangibles and marking hedges to
market), (vii) non-cash employee compensation expenses, (viii) the CEO Payment
Amount, (ix) Management Fees during such period, (x) any charges associated
with the one-time write offs related to the Emeryville Lease and the Corporate
Office Lease, provided that the aggregate amount of such charges included in
this clause (x) shall not exceed $2,000,000, (xi) Transaction Costs and any
other non-recurring or extraordinary Cash costs incurred in such period,
provided that the aggregate amount of such other non-recurring or extraordinary
Cash costs included in this clause (xi) shall not exceed $3,000,000 in any one
Fiscal Year or $6,000,000 in the aggregate from and after the Closing Date, but
only, in the case of clauses (ii)-(xi), to the extent deducted in the
calculation of Consolidated Net Income, less other non-cash items added in the
calculation of Consolidated Net Income (other than any such non-cash item to
the extent it will result in the receipt of cash payments in any future
period), all of the foregoing as determined on a consolidated basis for Company
and its Subsidiaries in conformity with GAAP. Notwithstanding anything
contained herein to the contrary, the creation and

 

 

 

2

 

 

reversal
of reserves in the ordinary course of business shall not constitute non-cash
items for purposes of calculating Consolidated EBITDA.

“First Lien Credit Agreement” means the Credit Agreement dated
as of February 18, 2005, by and among Holdings, Company, the financial
institutions party thereto and BNP Paribas, as administrative agent, as amended
by the First Amendment to Credit Agreement dated as of July 21, 2005, the First
Lien Second Amendment, and any replacement agreement or facility existing at
any time to refund, refinance, replace or renew (including subsequent or
successive refinancings, replacements and renewals), in whole or in part,
amounts outstanding thereunder plus any additional amounts to the extent
permitted under this Agreement.

 

1.2          Amendment to Subsection 2.1 A:
Commitments.

Subsection 2.1A of the Credit Agreement is hereby amended
by deleting such subsection in its entirety and substituting the following
therefor:

 

“A.          Commitments. Subject to the
terms and conditions of this Agreement and in reliance upon the representations
and warranties of Company herein set forth, each Lender hereby severally agrees
to make the Loans as described in this subsection 2.1A. Each Lender that has an
Original Term Loan Commitment severally agrees to lend to Company on the
Closing Date an amount not exceeding its Original Term Loan Commitment to be
used for the purposes identified in subsection 2.5A. Each Lender that has an
Additional Term Loan Commitment severally agrees to lend to Company on or about
the Second Amendment Effective Date an amount not exceeding its Additional Term
Loan Commitment to be used for the purposes identified in subsection 2.5A. The
amount of each Lender’s Term Loan Commitment shall be set forth in the Register
and the aggregate amount of Term Loan Commitments is $146,000,000 (consisting
of Original Term Loan Commitments in the aggregate amount of $54,500,000, plus
Additional Term Loan Commitments in the aggregate amount of $91,500,000; provided
that the Term Loan Commitments of each Lender shall be adjusted to give effect
to any assignments of such Term Loan Commitments pursuant to subsection 10.1B.
Company may make only one borrowing under the Original Term Loan Commitments on
the Closing Date, and only one borrowing under the Additional Term Loan
Commitments on or about the Second Amendment Effective Date. Amounts borrowed
under this subsection 2.1A and subsequently repaid or prepaid may not be
reborrowed.”.

 

1.3          Amendment to Subsection
2.2A: Rate of Interest.

Subsection
2.2A(i) of the Credit Agreement is hereby amended by deleting clauses (a)

and (b) in their entirety
and substituting the following clauses (a) and (b) therefor:

 

“(a)         if a Base Rate Loan, then at the sum of
the Base Rate plus 6.00% per annum; or

 

(b)           if a LIBOR
Loan, then at the sum of Adjusted LIBOR, plus 7.00% per annum.”

 

 

 

3

 

1.4          Amendment to Subsection 2.4A: Scheduled Payments of Term
Loans.

Subsection 2.4A of the Credit Agreement is hereby amended by deleting
the table contained therein in its entirety and substituting the following
therefor:

 

	
  Date

  	
   

  	
  Scheduled
  Repayment

  
	
  June 30, 2012

  	
   

  	
  $36,500,000

  
	
  September 30, 2012

  	
   

  	
  $36,500,000

  
	
  December 31, 2012

  	
   

  	
  $36,500,000

  
	
  Stated Maturity Date

  	
   

  	
  $36,500,000

  
	
  TOTAL:

  	
   

  	
  $146,000,000

  

 

1.5          Amendment to Subsection 2.5: Use of Proceeds.

Subsection
2.5A of the Credit Agreement is hereby amended by inserting the following at
the end thereof:

“The
proceeds of the Additional Term Loans, together with $96,000,000 in proceeds of
the additional First Lien Term Loans
funded pursuant to the First Lien Second Amendment, shall be applied by Company
(i) to make the Special Dividend Payment and (ii) to pay for fees and expenses
incurred in connection with the Second Amendment and the First Lien Second
Amendment.”.

 

1.6          Amendment to Subsection 6.10:
Interest Rate Protection.

Subsection 6.10 of the Credit Agreement is hereby amended
by deleting such subsection in its entirety and substituting the following
therefor:

 

“6.10      Interest Rate
Protection.

 

At all
times after March 31, 2006, Company shall maintain in effect for three years after
the Closing Date one or more Interest Rate Agreements in an aggregate notional
principal amount of not less than 40% of the aggregate principal amount of the
Term Loans and the First Lien Term Loans outstanding, each such Interest Rate
Agreement to be in form and substance satisfactory to Administrative Agent; provided that Company
shall not be obligated to maintain in effect any such Interest Rate Agreements
at any time that the Applicable Consolidated Leverage Ratio is less than or
equal to 2.00:1:00. For purposes of clarification, while the above described
Interest Rate Agreements are required to be maintained during the above
described periods, each individual Interest Rate Agreement is not required to
be of such duration.”.

 

1.7          Amendment to Subsection 7.1: Indebtedness.

 

A.            Subsection 7.1(vi) of the Credit
Agreement is hereby amended by deleting such subsection in its entirety and
substituting the following therefor:

 

 

 

4

 

 

“(vi)
Company and its Subsidiaries may become liable with respect to the First Lien
Claims, provided, however, that the sum of the principal amount
of loans and unfunded loan commitments under the First Lien Credit Agreement
shall not exceed $262,000,000, provided further, however,
that such limit may be exceeded by an additional $15,000,000 if the Company
delivers an Officer's Certificate to the Administrative Agent certifying that
no Event of Default exists and that the Company will be in compliance with its
covenants under subsection 6.6 after giving effect to the proposed increase;”.

 

B.            Subsection 7.1 (viii) of the Credit Agreement is hereby
amended by deleting such subsection in its entirety and substituting the
following therefor:

 

“(viii)
Foreign Subsidiaries of Company may become and remain liable with respect to
additional Indebtedness to finance working capital and otherwise in an aggregate
principal amount not to exceed $15,000,000 at any time outstanding;”

 

1.8          Amendment to Subsection 7.3: Investments; Acquisitions.

 

Subsection
7.3(xii) of the Credit Agreement is hereby amended by deleting such subsection in
its entirety and substituting the following therefor:

“(xii)
Company and the Subsidiary Guarantors may make and own Investments in Foreign
Subsidiaries, provided that the amount of all such Investments made from and
after the Closing Date minus the amount of all cash dividends, distributions
and other payments received by Company or any of the Subsidiary Guarantors in
respect of such Investments after the Closing Date shall not at any time exceed
$15,000,000;”

 

1.9          Amendment to Subsection 7.5: Restricted Junior Payments.

 

A.            Subsection 7.5 of the Credit
Agreement is hereby amended by deleting clause (iii) in its entirety and
substituting the following therefor:

“(iii)
so long as no Event of Default or Potential Event of Default shall have
occurred and be continuing or shall be caused thereby, Company may make
Restricted Junior Payments to Holdings to the extent necessary to permit
Holdings to repurchase Holdings Capital Stock (or any options rights to acquire
such Capital Stock) from any former or current employee of Holdings or its
Subsidiaries so long as the aggregate amount of all such repurchases shall not
exceed $15,000,000 in the aggregate, and Holdings may repurchase such Capital
Stock using the proceeds of such Restricted Junior Payments by Company or, if
such Restricted Payments are not made by Company in sufficient amounts to
effect such repurchase, Holdings may issue promissory notes in exchange for
such Capital Stock and may subsequently redeem such promissory notes,”.

 

B.            Subsection 7.5 of the Credit
Agreement is hereby further amended by adding the following at the end thereof:

“, and (vi) Company may, on the Second Amendment
Effective Date or within three (3) Business Days thereafter, make a dividend to
Holdings in the amount of the Special Dividend Payment, and Holdings may make a
dividend in the amount of the Special

 

 

 

5

 

 

 

Dividend Payment to its shareholders (it being understood that
Restricted Junior Payments permitted under this subsection 7.5 are not in any
way restricted by the provisions of subsection 7.7 or subsection 7.9).”.

 

1.10        Amendments to Subsection 7.6: Maximum Leverage Ratio.

Subsection 7.6 of the Credit Agreement is hereby
amended by deleting the table contained therein in its entirety and
substituting the following therefor:

 

	
  Period

  	
   

  	
  Maximum Leverage Ratio

  	
   

  
	
  2nd Fiscal Quarter 2005
  through 3rd Fiscal
  Quarter 2005

  	
   

  	
  5.50:1.00

  	
   

  
	
  4th Fiscal Quarter 2005

  	
   

  	
  6.10:1.00

  	
   

  
	
  1st Fiscal Quarter 2006
  through 3rd Fiscal
  Quarter 2006

  	
   

  	
  6.00:1.00

  	
   

  
	
  4th Fiscal
  Quarter 2006 through 3rd Fiscal Quarter 2007

  	
   

  	
  5.75:1.00

  	
   

  
	
  4th Fiscal Quarter 2007
  through 3rd Fiscal
  Quarter 2008

  	
   

  	
  5.25:1.00

  	
   

  
	
  4th Fiscal Quarter 2008 and thereafter

  	
   

  	
  4.75:1.00

  	
   

  

 

1.11         Amendments to Subsection 7.8: Consolidated Capital
Expenditures.

 

A.            Subsection 7.8 of the Credit
Agreement is hereby amended by deleting such subsection in its entirety and
substituting the following therefor:

 

“7.8        Consolidated Capital Expenditures.

Company
shall not, and shall not permit its Subsidiaries to, make or incur Consolidated
Capital Expenditures (other than a Permitted Equity Contribution Capex) in any
Fiscal Year indicated below, in an aggregate amount in excess of the
corresponding amount (the “Maximum Consolidated Capital Expenditures Amount”)
set forth below opposite such Fiscal Year; provided that the Maximum
Consolidated Capital Expenditures Amount for any Fiscal Year shall be increased
by an amount equal to the excess, if any, (but in no event more than $9,000,000) of the Maximum Consolidated Capital
Expenditures Amount for the previous Fiscal Year (as adjusted in accordance
with this proviso) over the actual amount of Consolidated Capital Expenditures
for such previous Fiscal Year; provided, further that in no event shall the
amount of such increase exceed 50% of the Maximum Consolidated Capital
Expenditures Amount for such previous Fiscal Year:

 

 

	
  Fiscal Year

  	
   

  	
  Maximum Consolidated

  Capital Expenditures

  	
   

  
	
  2005

  	
   

  	
  $12,000,000 

  	
   

  
	
  2006 and each Fiscal Year
  thereafter

  	
   

  	
  $18,000,000"

  	
   

  

 

 

 

 

6

 

 

 

 

 

SECTION 2.         REPRESENTATIONS AND WARRANTIES

In order to induce Lenders and Administrative Agent to
enter into this Amendment, Company and Holdings each represents and warrants to
each Lender and Administrative Agent that the following statements are true,
correct and complete:

(i)            each of Company and
Holdings has all requisite corporate power and authority to enter into
this Amendment and to carry out the transactions contemplated by, and perform
its obligations under, the Credit Agreement as amended by this Amendment (the “Amended
Agreement”);

(ii)           the
execution and delivery of this Amendment and the performance of the Amended
Agreement have been duly authorized by all necessary corporate action on the
part of Company and Holdings;

(iii)          the
execution and delivery by Company and Holdings of this Amendment and the
performance by Company and Holdings of the Amended Agreement do not and will
not (i) violate any provision of any law or any governmental rule or regulation
applicable to Holdings, Company or any of its Subsidiaries, the Certificate or
Articles of Incorporation or Bylaws of Holdings, Company or any of its
Subsidiaries or any order, judgment or decree of any court or other agency of
government binding on Holdings, Company or any of its Subsidiaries, (ii)
conflict with, result in a breach of or constitute (with due notice or lapse of
time or both) a default under any Contractual Obligation of Holdings, Company
or any of its Subsidiaries, (iii) result in or require the creation or imposition
of any Lien upon any of the properties or assets of Holdings, Company or any of
its Subsidiaries (other than Liens created under any of the Loan Documents in
favor of Administrative Agent on behalf of Lenders and other Liens permitted
under the Amended Agreement), or (iv) require any approval of stockholders or
any approval or consent of any Person under any Contractual Obligation of
Holdings, Company or any of its Subsidiaries, except for with respect to the
foregoing clauses (i), (ii) and (iv) above, such violations, conflicts,
breaches, defaults or failures to obtain approvals or consents which could not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect;

(iv)          the
execution and delivery by Company of this Amendment and the performance by
Holdings and Company of the Amended Agreement do not and will not require any
registration with, consent or approval of, or notice to, or other action to,
with or by, any federal, state or other governmental authority or regulatory
body, except for registrations, consents, approvals, notices and other actions
the failure to obtain or take have not and could not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect;

(v)           this
Amendment and the Amended Agreement have been duly executed and delivered by
Company and Holdings and are the legally valid and binding obligations of
Company and Holdings, enforceable against Company and Holdings in accordance
with their respective terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or limiting
creditors’ rights generally or by equitable principles relating to
enforceability;

 

 

 

 

7

 

 

(vi)          the representations and warranties
contained in Section 5 of the Credit Agreement
are and will be true, correct and complete in all material respects on and as
of the date hereof and the Second
Amendment Effective Date to the same extent as though made on and as of such
dates, except to the extent such representations and warranties specifically
relate to an earlier date, in which case they were true, correct and complete
in all material respects on and as of such earlier date; and

(vii)         no
event has occurred and is continuing or will result from the consummation of
the transactions contemplated by this Amendment that would constitute an Event
of Default or a Potential Event of Default.

 

SECTION 3.         ACKNOWLEDGEMENT AND CONSENT

Each of Company, Holdings and each Subsidiary Guarantor
(each individually a “Credit Support Party”
and collectively, the “Credit Support Parties”)
has read this Amendment and consents to the terms hereof and further hereby
confirms and agrees that, notwithstanding the effectiveness of this Amendment,
the obligations of such Credit Support Party under, and the Liens granted by
such Credit Support Party as collateral security for the indebtedness,
obligations and liabilities evidenced by the Credit Agreement and the other
Loan Documents pursuant to, each of the Loan Documents to which such Credit
Support Party is a party shall not be impaired and each of the Loan Documents
to which such Credit Support Party is a party is, and shall continue to be, in
full force and effect and is hereby confirmed and ratified in all respects.

Each Subsidiary Guarantor acknowledges and agrees
that (i) notwithstanding the conditions to effectiveness set forth in this
Amendment, such Credit Support Party is not required by the terms of the Credit
Agreement or any other Loan Document to consent to the amendments to the Credit
Agreement effected pursuant to this Amendment and (ii) nothing in the Credit
Agreement, this Amendment or any other Loan Document shall be deemed to require
the consent of such Credit Support Party to any future amendments to the Credit
Agreement.

 

SECTION 4.         CONDITIONS TO EFFECTIVENESS

Except as set forth below, this Amendment shall become
effective only upon the satisfaction of the following conditions precedent (the
“Closing Conditions”):

A.            Corporate Documents. On or before
the Second Amendment Effective Date, Company shall and shall cause each other
Credit Support Party to deliver to Lenders (or to Administrative Agent for
Lenders with sufficient executed copies, where appropriate, for each Lender and
its counsel), with respect to Company or such other Credit Party, as the case
may be, a Secretary’s Certificate, in form and substance reasonably
satisfactory to Administrative Agent and dated the Second Amendment Effective
Date, certifying that (1) the Organizational Documents of Company, (2) the
resolutions of the Board of Directors of Company and each other Credit Support
Party and (3) the signature and incumbency certificate of Company and each
other Credit Support Party, in each case, as delivered to Administrative Agent
on the Closing Date, are in full force and effect and have not been amended or
modified in any respect since the Closing Date.

 

 

8

 

 

B.            Opinion of Counsel.
Lenders and their respective counsel (or Administrative Agent on behalf of Lenders and their respective counsel) shall have
received executed copies of one or more favorable written opinions of Latham
& Watkins LLP, counsel for Loan Parties in form and substance reasonably satisfactory
to Administrative Agent and its counsel and dated as of the Second Amendment
Effective Date.

C.            Amendment of First Lien
Credit Agreement. Administrative Agent shall have received a written amendment of the First Lien
Credit Agreement executed by Holdings, Company, Lenders under the First Lien
Credit Agreement and BNP Paribas, as administrative agent, in form and
substance satisfactory to Administrative Agent, which amendment shall be in
form substantially similar to this Amendment.

D.            Litigation.
No action, suit, investigation, litigation or proceeding by any entity (private or
governmental) before any court, arbitration or governmental authority shall be pending or, to the knowledge of Holdings, Company or their respective
Subsidiaries, threatened with respect to this Amendment, any other Loan
Document, any other Related Agreement or any other documentation executed in
connection herewith or with respect to the transactions contemplated hereby, or
which could reasonably be expected to have a Material Adverse Effect.

E.             Certificate Regarding Financial Conditions.
On the Second Amendment Effective Date, Company shall have delivered to
Administrative Agent an Officer’s Certificate executed by the chief financial officer
of Company certifying that (i) for the twelve-month period ending August 31,
2005, the ratio of (A) Consolidated Total Debt (minus all Cash and Cash
Equivalents held by any Loan Party on the last day of such period subject to a
Second Priority Lien) as at such date to (B) Consolidated EBITDA for such
period, calculated on a pro forma basis to give effect to this Amendment, the
Additional Term Loans, the First Lien Second Amendment and the additional First
Lien Term Loans contemplated by the First Lien Second Amendment does not exceed
5.25:1.00, together with calculations demonstrating the foregoing in form and
substance reasonably satisfactory to Administrative Agent, and (ii) no
Potential Event of Default or Event of Default has occurred and is continuing.

F.             Completion of Proceedings.
All corporate and other proceedings taken or to be taken in connection with the
transactions contemplated hereby and all documents incidental thereto not
previously found acceptable by Administrative Agent, acting on behalf of
Lenders, and its counsel shall be satisfactory in form and substance to
Administrative Agent and such counsel, and Administrative Agent and such
counsel shall have received all such counterpart originals or certified copies
of such documents as Administrative Agent may reasonably request.

 

G.            Fees and Expenses.
Administrative Agent shall have received all of Administrative Agent’s reasonable costs and expenses as described in
subsection 10.2 of the Credit Agreement incurred by Administrative Agent (including,
without limitation, the reasonable fees and disbursements of O’Melveny &
Myers LLP) in connection with this Amendment and the documents and transactions
related hereto, and any fees separately agreed upon between Company and
Administrative Agent.

H.            No Material Adverse Effect. Since
December 31, 2004, there shall not have occurred (i) a material adverse effect
upon the business, operations, properties, assets, liabilities,

 

 

 

9

 

 

condition (financial or otherwise) or prospects of Holdings,
Company and its subsidiaries, taken as a whole or (ii) a material adverse
effect on the ability of Holdings, Company or any of its subsidiaries executing
a Loan Document to perform, or of Administrative Agent or any Lender to
enforce, the obligations under the Loan Documents.

I.              Notification of Execution. Receipt
by Administrative Agent and Company of written or telephonic notice that
Company, Holdings, the Requisite Lenders and each of the Credit Support Parties
has executed this Amendment and authorized its delivery.

Notwithstanding anything herein to the contrary, the
amendments to the Credit Agreement set forth in subsections 1.3, 1.4, 1.7, 1.8,
1.9, 1.10 and 1.11 of this Amendment shall become effective only upon the
satisfaction of all the Closing Conditions and the Funding Condition (as defined
below) and the funding of the Additional Term Loans.

 

SECTION 5.         CONDITION TO FUNDING

The obligation of any Lender to make Additional Term Loans
shall be conditioned on the satisfaction of all funding conditions set forth in
Section 4.2 of the Credit Agreement with respect to the Additional Term Loans
and the receipt by Administrative Agent and Company of written or telephonic
notice that Company, Holdings, the Requisite Lenders, Lenders providing Additional
Term Loan Commitments aggregating $91,500,000, and each of the Credit Support
Parties has executed this Amendment and authorized its delivery (the “Funding Condition”).

 

SECTION 6.         MISCELLANEOUS

 

A.            Reference to and Effect on the
Credit Agreement and the Other Loan Documents.

(i)            On
and after the effective date of this Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof’, “herein” or words of like
import referring to the Credit Agreement and each reference in the other Loan
Documents to the “Credit Agreement”, “thereunder”, “thereof’ or words of like
import referring to the Credit Agreement shall mean and be a reference to the
Credit Agreement as amended hereby.

 

(ii)           Except as specifically amended by this
Amendment, the Credit Agreement and the
other Loan Documents shall remain in full force and effect and are hereby ratified
and confirmed.

(iii)          The execution, delivery and performance of this Amendment shall not,
except as expressly provided herein, constitute a waiver of any provision of, or operate as a waiver of any right, power or
remedy of Administrative Agent or any Lender under the Credit Agreement or any of the other Loan Documents.

 

B.            Headings.
Section and subsection headings in this Amendment are included herein for convenience of reference only and shall not constitute a part
of this Amendment for any other purpose or be given any substantive effect.

 

 

 

10

 

 

 

 

 

C.            Applicable Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT LIMITATION SECTION
5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

D.            Counterparts. This 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 an original, but all such counterparts
together shall constitute but one and the same instrument; signature pages may
be detached from multiple separate counterparts and attached to a single
counterpart so that all signature pages are physically attached to the same
document.

 

 

[Remainder of this page
intentionally left blank]

 

 

 

 

11

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to
be duly executed and delivered by their respective officers thereunto duly
authorized as of the date first written above.

 

 

	
  COMPANY:

  	
   

  	
   

  
	
   

  	
  MD BEAUTY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leslie A Blodgett

  
	
   

  	
  Name:

  	
  Leslie A Blodgett

  
	
   

  	
  Title:

  	
  President, Chief Executive
  Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  HOLDINGS:

  	
   

  	
   

  
	
   

  	
  STB BEAUTY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leslie A Blodgett

  
	
   

  	
  Name:

  	
  Leslie A Blodgett

  
	
   

  	
  Title:

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
				

 

 

 

 

S-1

 

 

	
  CREDIT SUPPORT PARTIES:

  (for purposes of Section 3)

  	
   

  	
   

  
	
   

  	
  STB BEAUTY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leslie A Blodgett

  
	
   

  	
  Name:

  	
  Leslie A Blodgett

  
	
   

  	
  Title:

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BARE ESCENTUALS, INC.

  BIOCEUTIX INC.

  ID DIRECT, INC.

  MD BEAUTY SALES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leslie A Blodgett

  
	
   

  	
  Name:

  	
  Leslie A Blodgett

  
	
   

  	
  Title:

  	
  President, Chief Executive
  Officer and Secretary

  
	
   

  	
   

  	
   

  
				

 

 

 

 

S-2

 

 

 

 

	
  LENDERS:

  	
   

  	
   

  
	
   

  	
  BNP PARIBAS,

  individually and as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Cecile Scherer

  
	
   

  	
  Name:

  	
  Cecile Scherer

  
	
   

  	
  Title:

  	
  Director

  Merchant Banking Group

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Amy Kirschner

  
	
   

  	
  Name:

  	
  Amy Kirschner

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  

 

 

S-3

 

 

 

	
   

  	
   

  	
   

  
	
   

  	
  APOLLO DISTRESSED INVESTMENT

  Fund (QP), L.P.

  By: Apollo DIF Management, L.P., its Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patricia M. Navis

  
	
   

  	
  Name:

  	
  Patricia M. Navis

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

S-4

 

 

 

	
   

  	
   

  	
   

  
	
   

  	
  APOLLO DISTRESSED OFFSHORE
  INVESTMENT FUND, LTD.

  By: Apollo DIF Management, L.P., its Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patricia M. Navis

  
	
   

  	
  Name:

  	
  Patricia M. Navis

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

 

S-5

 

 

	
   

  	
   

  	
   

  
	
   

  	
  VAN KAMPEN

  SENIOR INCOME TRUST

  By: Van Kampen Asset Management

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christina Jamieson

  
	
   

  	
  Name:

  	
  Christina Jamieson

  
	
   

  	
  Title:

  	
  Executive Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

 

 

 

 

 

S-6

 

 

 

	
   

  	
   

  	
   

  
	
   

  	
  VAN KAMPEN

  SENIOR LOAN FUND

  By: Van Kampen Asset Management

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christina Jamieson

  
	
   

  	
  Name:

  	
  Christina Jamieson

  
	
   

  	
  Title:

  	
  Executive Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

 

S-7

 

 

 

	
   

  	
   

  	
   

  
	
   

  	
  OWS CLO I Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dean Stephan

  
	
   

  	
  Name:

  	
  Dean Stephan

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

S-8

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Loan Funding IV LLC

  By: Highland Capital Management, L.P., As Collateral Manager

  By: Strand Advisors, Inc., Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chad Schramek

  
	
   

  	
  Name:

  	
  Chad Schramek

  
	
   

  	
  Title:

  	
  Assistant Treasurer Strand
  Advisors, Inc., General Partner of Highland Capital Management, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

S-9

 

	
   

  	
   

  	
   

  
	
   

  	
  Loan Funding VII LLC

  By: Highland Capital Management, L.P., As Collateral Manager

  By: Strand Advisors, Inc., Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chad Schramek

  
	
   

  	
  Name:

  	
  Chad Schramek

  
	
   

  	
  Title:

  	
  Assistant Treasurer Strand
  Advisors, Inc., General Partner of Highland Capital Management, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

S-10

 

	
   

  	
   

  	
   

  
	
   

  	
  Southfork CLO, Ltd.

  By: Highland Capital Management, L.P., As Collateral Manager

  By: Strand Advisors, Inc., Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chad Schramek

  
	
   

  	
  Name:

  	
  Chad Schramek

  
	
   

  	
  Title:

  	
  Assistant Treasurer Strand
  Advisors, Inc., General Partner of Highland Capital Management, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

 

S-11

 

 

	
   

  	
   

  	
   

  
	
   

  	
  First Trust/Highland Capital Floating
  Rate Income Fund

  By: Highland Capital Management, L.P., Its Sub-Advisor

  By: Strand Advisors, Inc., Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joe Dougherty

  
	
   

  	
  Name:

  	
  Joe Dougherty

  
	
   

  	
  Title:

  	
  Senior Vice President
  Strand Advisors, Inc., General Partner of Highland Capital Management, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

S-12

 

	
   

  	
   

  	
   

  
	
   

  	
  Highland Floating Rate
  Advantage Fund

  By: Highland Capital Management, L.P., As Collateral Manager

  By: Strand Advisors, Inc., Its Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joe Dougherty

  
	
   

  	
  Name:

  	
  Joe Dougherty

  
	
   

  	
  Title:

  	
  Senior Vice President
  Strand Advisors, Inc., General Partner of Highland Capital Management, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

 

S-13

 

	
   

  	
   

  	
   

  
	
   

  	
  Highland Floating Rate Limited
  Liability Company

  By: Highland Capital Management, L.P., As Collateral Manager

  By: Strand Advisors, Inc., Its Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joe Dougherty

  
	
   

  	
  Name:

  	
  Joe Dougherty

  
	
   

  	
  Title:

  	
  Senior Vice President
  Strand Advisors, Inc., General Partner of Highland Capital Management, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

S-14

 

	
   

  	
   

  	
   

  
	
   

  	
  Pioneer Floating Rate Trust

  By: Highland Capital Management, L.P., Its Sub-Advisor

  By: Strand Advisors, Inc., Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joe Dougherty

  
	
   

  	
  Name:

  	
  Joe Dougherty

  
	
   

  	
  Title:

  	
  Senior Vice President
  Strand Advisors, Inc., General Partner of Highland Capital Management, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

S-15

 

 

	
   

  	
  CANADIAN IMPERIAL BANK OF
  COMMERCE

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John O'Donald

  
	
   

  	
  Name:

  	
  John O'Donald

  
	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Amy Kirschner

  
	
   

  	
  Name:

  	
  Milena Grgic

  
	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

S-16

 

 

	
   

  	
  NAVIGATOR CDO 2003, LTD.

  By Antares Asset Management Inc. as Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John G. Martin

  
	
   

  	
  Name:

  	
  John G. Martin

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NAVIGATOR CDO 2004, LTD.

  By Antares Asset Management Inc. as Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John G. Martin

  
	
   

  	
  Name:

  	
  John G. Martin

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NAVIGATOR CDO 2005, LTD.

  By Antares Asset Management Inc. as Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John G. Martin

  
	
   

  	
  Name:

  	
  John G. Martin

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

S-17

 

 

 

	
   

  	
  FOXE BASIN CLO 2003, LTD.

  By: GSO Capital Partners LP as Collateral Managers

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Melissa Marano

  
	
   

  	
  Name:

  	
  Melissa Marano

  
	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

S-18

 

	
   

  	
  LightPoint CLO 2004-1, Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy S. Van Kirk

  
	
   

  	
  Name:

  	
  Timothy S. Van Kirk

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LightPoint CLO III, Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy S. Van Kirk

  
	
   

  	
  Name:

  	
  Timothy S. Van Kirk

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

S-19

 

	
   

  	
  Oppenheimer Senior Floating
  Rate Fund

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susanna Evans

  
	
   

  	
  Name:

  	
  Susanna Evans

  
	
   

  	
  Title:

  	
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Lender’s execution of
  this Amendment signifies only the Lender’s consent to this Amendment, and
  does not constitute a commitment to provide any portion of the Additional
  Term Loans. Any such commitment would be expressed in a separate commitment
  letter or other written agreement.

  

 

 

 

S-20

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