Document:

EXHIBIT 4.3

 

SECURITY AGREEMENT SUPPLEMENT

 

SUPPLEMENT NO. 1 (this “Supplement”), dated as of January 31, 2013 to the Second Lien Security Agreement dated as of July 9, 2012 by and among THE BON-TON DEPARTMENT STORES, INC., a Delaware corporation (the “Issuer”), and the other Persons listed on the signature pages thereof (collectively, the “Initial Grantors”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee and Collateral Agent (in its capacity as collateral agent, the “Collateral Agent”) for the Secured Parties.

 

A.            Reference is made to the indenture dated as of July 9, 2012 (as amended, amended and restated, extended, renewed, refinanced, supplemented or otherwise modified from time to time, the “Indenture”), by and among the Issuer, each Guarantor (as defined in the Indenture), the Trustee and the Collateral Agent.

 

B.            Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Indenture and the Security Agreement referred to therein.

 

C.            The Grantors have entered into the Security Agreement pursuant to the requirements of the Indenture.  Section 6.14 of the Security Agreement provides that certain Persons may become Grantors under the Security Agreement by execution and delivery of an instrument in the form of this Supplement.  The undersigned Person (the “New Grantor”) is executing this Supplement in accordance with the requirements of the Indenture to become a Grantor under the Security Agreement as required by the Indenture.

 

Accordingly, the Collateral Agent and the New Grantor agree as follows:

 

SECTION 1.  In accordance with Section 6.14 of the Security Agreement, the New Grantor by its signature below becomes a Grantor under the Security Agreement with the same force and effect as if originally named therein as a Grantor and the New Grantor hereby (a) agrees to all the terms and provisions of the Security Agreement applicable to it as a Grantor thereunder and (b) represents and warrants that the representations and warranties made by it as a Grantor thereunder are true and correct on and as of the date hereof.  In furtherance of the foregoing, the New Grantor, as security for the payment and performance in full of the Secured Obligations does hereby create and grant to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, their successors and assigns, a security interest in and lien on all of the New Grantor’s right, title and interest in and to the Collateral (as defined in the Security Agreement) of the New Grantor.  Each reference to a “Grantor” in the Security Agreement shall be deemed to include the New Grantor.  The Security Agreement is hereby incorporated herein by reference.

 

SECTION 2.  The New Grantor represents and warrants to the Collateral Agent and the other Secured Parties that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, 

 

 

enforceable against it in accordance with its terms, except as such enforceability may be limited by Debtor Relief Laws and by general principles of equity.

 

SECTION 3.  This Supplement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Supplement shall become effective when the Collateral Agent shall have received a counterpart of this Supplement that bears the signature of the New Grantor, and the Collateral Agent has executed a counterpart hereof.  Delivery of an executed signature page to this Supplement by facsimile transmission or other electronic communication shall be as effective as delivery of a manually signed counterpart of this Supplement.

 

SECTION 4.  The New Grantor hereby represents and warrants that (a) set forth on Schedule I attached hereto is a true and correct schedule of the Pledged Collateral and (b) set forth under its signature hereto is the true and correct legal name of the New Grantor, its jurisdiction of formation and the location of its chief executive office.

 

SECTION 5.  Except as expressly supplemented hereby, the Security Agreement shall remain in full force and effect.

 

SECTION 6.  THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

SECTION 7.  In case any one or more of the provisions contained in this Supplement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and in the Security Agreement shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction).  The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

SECTION 8.  All communications and notices hereunder shall be in writing and given as provided in Section 6.01 of the Security Agreement.

 

SECTION 9.  The New Grantor agrees to reimburse the Collateral Agent for its fees and reasonable out-of-pocket expenses in connection with this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Collateral Agent.

 

[Remainder of Page Intentionally Blank]

 

2

 

IN WITNESS WHEREOF, the New Grantor and the Collateral Agent have duly executed this Supplement to the  Security Agreement as of the day and year first above written.

 

	
 
    	
THE   BON-TON GIFTCO, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/S/ J. GREGORY YAWMAN
    
	
 
    	
 
    	
Name:
    	
 J.   Gregory Yawman
    
	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Jurisdiction   of Formation: Virginia
    
	
 
    	
Address   Of Chief Executive Office:
    
	
 
    	
2801   East Market Street
    
	
 
    	
York,   PA 17402
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION,
    
	
 
    	
as   Collateral Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/S/ RICHARD PROKOSCH
    
	
 
    	
 
    	
Name:
    	
 Richard Prokosch
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

3

 

SCHEDULE I
 TO EXHIBIT I TO THE SECOND LIEN SECURITY AGREEMENT

 

Pledged Equity

 

	
Grantor
    	
 
    	
Issuer
    	
 
    	
Class of
   Equity
   Interest
    	
 
    	
Par
   Value
    	
 
    	
Certificate
   No(s)
    	
 
    	
Number
   of Shares
    	
 
    	
Percentage
   of
   Outstanding
   Shares of
   the Same
   Class of
   Equity 
   Interest
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Pledged Debt

 

	
Grantor
    	
 
    	
Debt
   Issuer
    	
 
    	
Description of
   Debt
    	
 
    	
Debt 
   Certificate
   No(s)
    	
 
    	
Final 
   Scheduled 
   Maturity
    	
 
    	
Outstanding
   Principal
   Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

4EXHIBIT 4.4

 

OMNIBUS JOINDER AGREEMENT TO LOAN DOCUMENTS

 

This Omnibus Joinder Agreement (this “Joinder”) is made as of January 31, 2013, by and among:

 

THE BON-TON GIFTCO, LLC, a Virginia limited liability company (the “New Guarantor”), with its principal executive offices at 2801 E. Market Street, York, PA 17402;

 

THE BON-TON DEPARTMENT STORES, INC., a Pennsylvania corporation, in its capacity as Borrower Agent (as defined in the Loan Agreement); and

 

BANK OF AMERICA, N.A., a national banking association, having a place of business at 100 Federal Street, Boston, Massachusetts 02110, as administrative agent and as co-collateral agent for its own benefit and the benefit of the other Secured Parties (as defined in the Loan Agreement);

 

in consideration of the mutual covenants herein contained and benefits to be derived herefrom.

 

WITNESSETH:

 

A.            Reference is made to that certain Second Amended and Restated Loan and Security Agreement dated as of March 21, 2011 (as modified by that certain First Amendment to Second Amended and Restated Loan and Security Agreement dated as of October 25, 2012 and as further amended, amended and restated, supplemented or otherwise modified and in effect from time to time, the “Loan Agreement”), by and among The Bon-Ton Department Stores, Inc., a Pennsylvania corporation (“Bon-Ton”), Carson Pirie Scott II, Inc., a Mississippi corporation (“CPS II”), Bon-Ton Distribution, Inc., an Illinois corporation (“Distribution”), McRIL, LLC, a Virginia limited liability company (“McRIL”), The Bon-Ton Stores of Lancaster, Inc., a Pennsylvania corporation (“Lancaster” and, together with Bon-Ton, CPS II, Distribution, McRIL and any other person from time to time a borrower thereunder, collectively, the “Borrowers”), each of the other Obligors party thereto, the financial institutions party thereto from time to time as lenders (collectively, “Lenders”), Bank of America, N.A. (“Bank of America”), a national banking association, as agent for the Lenders (in such capacity, the “Agent”), Bank of America, and General Electric Capital Corporation (“GE Capital”), acting as co-collateral agents (in such capacity, the “Co-Collateral Agents”), and the other agents and arrangers from time to time party thereto. All capitalized terms used herein, and not otherwise defined herein, shall have the meanings assigned to such terms in the Loan Agreement.

 

B.            The New Guarantor is entering into that certain Guaranty dated as of the date hereof, whereby the New Guarantor guarantees to the Agent, for the benefit of the Secured Parties, the full and punctual payment when due, as well as, the performance of all of the Obligations.

 

 

C.            The New Guarantor desires to become a party to, and bound by the terms of, the Loan Agreement and the other Loan Documents in the same capacity and to the same extent as the Guarantors thereunder.

 

D.            Pursuant to the terms of the Loan Agreement, in order for the New Guarantor to become party to the Loan Agreement and the other Loan Documents as provided herein, the New Guarantor and the Borrower Agent are required to execute this Joinder.

 

NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             Joinder and Assumption of Obligations. Effective as of the date of this Joinder, the New Guarantor hereby acknowledges that the New Guarantor has received and reviewed a copy of the Loan Agreement and the other Loan Documents, and hereby:

 

a.             joins in the execution of, and becomes a party to, the Loan Agreement as an “Obligor” and a “Guarantor”, as indicated by its signature below, as if the New Guarantor was an original signatory to the Loan Agreement and was expressly named therein;

 

b.             joins in the execution of, and becomes a party to, the Pledge Agreement as a “Company” and, to the extent applicable, a “Subsidiary”, as indicated by its signature below, as if the New Guarantor was an original signatory to the Pledge Agreement and was expressly named therein;

 

c.             joins in the execution of, and becomes a party to, the Trademark Security Agreement as a “Assignor”, as indicated by its signature below, as if the New Guarantor was an original signatory to the Trademark Security Agreement and was expressly named therein;

 

d.             joins in the execution of, and becomes a party to, the Copyright Security Agreement as a “Grantor”, as indicated by its signature below, as if the New Guarantor was an original signatory to the Copyright Security Agreement and was expressly named therein;

 

e.             covenants and agrees to be bound by all covenants, agreements, liabilities and acknowledgments (other than covenants, agreements, liabilities and acknowledgments which specifically relate solely to an earlier date) of a Guarantor under the Loan Agreement and the other Loan Documents, in each case, with the same force and effect as if such New Guarantor was a signatory to the Loan Agreement and the other Loan Documents and was expressly named as a Guarantor (however referenced) therein and a party thereto (including, without limitation the grant of a security interest to the Agent in the Collateral as provided in Section 7.1 of the Loan Agreement and in any other Loan Document); and

 

f.             assumes and agrees to perform all applicable duties and Obligations of a Guarantor under the Loan Agreement and the other Loan Documents.

 

 

2.             Grant of Security Interest. To secure the prompt payment and performance of all Obligations, the New Guarantor grants to Agent, for the benefit of Secured Parties, a continuing security interest in and Lien upon the personal and fixture property, assets and rights (including, without limitation, the Collateral, and all of the assets, property and rights described in Section 7.1 of the Loan Agreement or in any other Loan Document) of the New Guarantor of every kind and nature, whether now owned or hereafter acquired or arising, and wherever located to the extent provided by and in accordance with Section 7.1 of the Loan Agreement.

 

3.             Representations and Warranties. The New Guarantor hereby makes as of the date hereof all representations, warranties and other statements (other than representations, warranties and statements which specifically relate solely to an earlier date) of a Guarantor under the Loan Agreement and the other Loan Documents, in each case, with the same force and effect as if such New Guarantor was a signatory to the Loan Agreement and the other Loan Documents and was expressly named as a Guarantor therein.

 

4.             Ratification of Loan Documents. All of the terms and conditions of the Loan Agreement and of the other Loan Documents shall remain in full force and effect as in effect prior to the date hereof, without releasing any Obligor thereunder or Collateral therefor.

 

5.             Conditions Precedent to Effectiveness. This Joinder shall not be effective until each of the following conditions precedent have been fulfilled to the satisfaction of the Agent:

 

a.             This Joinder shall have been duly executed and delivered by the respective parties hereto.

 

b.             All action on the part of the New Guarantor and the other Obligors necessary for the valid execution, delivery and performance by the New Guarantor of this Joinder and all other documentation, instruments, and agreements required to be executed in connection herewith shall have been duly and effectively taken and evidence thereof reasonably satisfactory to the Agent shall have been provided to the Agent.

 

c.             The New Guarantor shall each have delivered the following to the Agent, in form and substance reasonably satisfactory to the Agent:

 

i.              Certificate of legal existence and good standing of the New Guarantor issued by the Secretary of the Commonwealth of the Commonwealth of its incorporation or organization.

 

ii.             A certificate of an authorized officer of the New Guarantor in respect of the due adoption and continued effectiveness of each corporate resolution adopted in connection with the assumption by the New Guarantor of obligations under the Loan Agreement and the other Loan Documents, setting forth the text of each such resolution, and attesting to the true signatures of each Person authorized as a signatory of the New Guarantor to any of the Loan

 

 

Documents, together with true and accurate copies of all Charter Documents of the New Guarantor.

 

iii.            Perfection Certificate of the New Guarantor in the form delivered by the Obligors on the Closing Date.

 

iv.            Execution and delivery by the New Guarantor of such other documents, agreements and certificates as the Agent may reasonably require in accordance with the Loan Documents.

 

d.             The Agent shall have received a written legal opinion of the Obligors’ counsel addressed to the Agent and the other Lenders, covering such matters relating to the New Guarantor, the Loan Documents and/or the transactions contemplated thereby as the Agent shall reasonably request, it being understood that such opinion shall be substantively similar to the opinion of Obligors’ counsel delivered on the Closing Date pursuant to Section 6.1(g) of the Loan Agreement.

 

e.             The Agent shall have received all documents and instruments, (including UCC financing statements, agreements providing for Agent’s control over Deposit Accounts and Credit Card Notifications), required by law or reasonably requested by the Agent in accordance with the Loan Documents to create or perfect the first priority Lien (subject only to Permitted Liens having priority by operation of Applicable Law) intended to be created under the Loan Documents and all such documents and instruments shall have been so filed, registered or recorded to the reasonable satisfaction of the Agent.

 

f.             All reasonable and documented out-of-pocket expenses incurred by the Agent in connection with the preparation and negotiation of this Joinder and related documents (including the reasonable and documented fees and out-of-pocket expenses of one legal counsel to the Agent) shall have been paid in full by the Borrowers.

 

g.             The Agent shall have received copies of policies of insurance, be reasonably satisfied with the amount, types and terms and conditions of all insurance maintained by the New Guarantor and have received certificates of insurance with endorsements naming the Agent, for the benefit of the Secured Parties, as loss payee or additional insured, as applicable, with respect to each insurance policy required to be maintained with respect to the Collateral and otherwise in form and substance reasonably satisfactory to the Agent and each of the Lenders.

 

h.             The Obligors shall have executed and delivered to the Agent such additional documents, instruments, and agreements as the Agent may reasonably request.

 

6.             Miscellaneous.

 

a.             This Joinder may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which together shall constitute one instrument. Delivery by

 

 

telecopier or by electronic .pdf copy of an executed counterpart of a signature page to this Joinder shall be effective as delivery of an original executed counterpart of this Joinder.

 

b.             This Joinder expresses the entire understanding of the parties with respect to the transactions contemplated hereby. No prior negotiations or discussions shall limit, modify, or otherwise affect the provisions hereof.

 

c.             Any determination that any provision of this Joinder or any application hereof is invalid, illegal or unenforceable in any respect and in any instance shall not affect the validity, legality, or enforceability of such provision in any other instance, or the validity, legality or enforceability of any other provisions of this Joinder.

 

d.           THIS JOINDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION).

 

[Signatures appear on following pages.]

 

 

IN WITNESS WHEREOF, each of the undersigned has caused this Joinder to be duly executed and delivered by its proper and duly authorized officer as of the date set forth above.

 

 

	
 
    	
NEW   GUARANTOR:
    
	
 
    	
 
    
	
 
    	
THE   BON-TON GIFTCO, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/S/    J. GREGORY YAWMAN
    
	
 
    	
By:   J. Gregory Yawman
    
	
 
    	
Title:   Vice President, General Counsel and Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AGENT:
    
	
 
    	
 
    
	
 
    	
BANK   OF AMERICA, N.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/S/    ANDREW CERUSSI
    
	
 
    	
By:   Andrew Cerussi
    
	
 
    	
Title:   Director
    

 

[Signature Page to Joinder]

 

 

	
Acknowledged and Agreed:
    	
 
    
	
 
    	
 
    
	
THE BON-TON DEPARTMENT STORES, INC.,
    	
 
    
	
as   Borrower Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/S/  KEITH E. PLOWMAN
    	
 
    
	
By:   Keith E. Plowman
    	
 
    
	
Title:Executive   Vice President, Chief Financial
    	
 
    
	
Officer   and Principal Accounting Officer
    	
 
    

 

[Signature Page to Joinder]

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