Document:

exv10w3

 

EXHIBIT 10.3

[Execution Copy]

September 19, 2005

Pier 1 Funding, L.L.C.

301 Commerce Street

Fort Worth, Texas 76102

Pier 1 Imports (U.S.), Inc.

301 Commerce Street

Fort Worth, Texas 76102

Re: Pier 1 Imports Credit Card Master Trust, Series 2001-1

Ladies and Gentlemen:

          Reference is made to the Certificate Purchase Agreement dated as of September 4, 2001 (as
amended, supplemented or otherwise modified from time to time the “Purchase Agreement”) among Pier
1 Funding, L.L.C., as the transferor (the “Transferor”), Pier 1 Imports (U.S.), Inc., as the
servicer (in such capacity, the “Servicer”), the Class A Purchasers named therein, and JPMorgan
Chase Bank, N.A. (as successor to Morgan Guaranty Trust Company of New York) (“JPMorgan Chase”), as
agent (in such capacity, the “Administrative Agent”). The sole Class A Purchasers as of the date
hereof are Delaware Funding Corporation, as the Structured Investor, and JPMorgan Chase, as the
sole Committed Investor. The Purchase Agreement has been executed and delivered by the parties
thereto in connection with the execution and delivery of the Series 2001-1 Supplement dated as of
September 4, 2001 (as amended, supplemented, or otherwise modified from time to time, the
“Supplement”), among the Transferor, the Servicer and Wells Fargo Bank, National Association
(successor by merger to Wells Fargo Bank Minnesota, National Association), as Trustee. Unless
otherwise defined herein, terms defined in the Purchase Agreement or the Supplement shall have the
meanings ascribed to them therein when used herein.

          Effective as of the date hereof, this letter amends and restates in its entirety the letter
agreement regarding fees dated September 7, 2005, relating to the Purchase Agreement and
constitutes the Supplemental Fee Letter referred to in the Purchase Agreement.

          The Transferor, the Servicer and the Administrative Agent, hereby agree as follows:

   1. As used in the Purchase Agreement, “Class A Facility Fee Rate” shall mean a
per annum rate determined by reference to the senior unsecured debt rating of Pier 1
Imports, in accordance with the pricing grid set out in paragraph 3 below.

 

 

     2. As used in the Purchase Agreement, “Class A Utilization Fee Rate” shall
mean (a) prior to the occurrence of an Accounting Based Consolidation Event (as
defined below), a per annum rate determined by reference to the senior unsecured
debt rating of Pier 1 Imports, in accordance with the pricing grid set out in
paragraph 3 below, and (b) on and after the occurrence of an Accounting Based
Consolidation Event, a per annum rate equal to the sum of the Reserve Increment (as
defined below) as computed from time to time and a per annum rate determined by
reference to the senior unsecured debt rating of Pier 1 Imports, in accordance with
the pricing grid set out in paragraph 3 below. As used herein, (i) “Accounting
Based Consolidation Event” means the occurrence of any change in accounting
standards or the issuance of any pronouncement or release by any accounting body or
any other body charged with the promulgation or administration of accounting
standards (including, without limitation, the Financial Accounting Standards Board,
the American Institute of Certified Public Accountants, the International Accounting
Standards Board or the Securities and Exchange Commission) or the occurrence of any
change in the interpretation or application of any accounting standard, the effect
of which (in any such event) is, in the sole judgment of JPMorgan Chase & Co., to
cause or require the consolidation of all or any portion of the assets and
liabilities of the Structured Investor with the assets and liabilities of JPMorgan
Chase & Co. or any of its Affiliates or the effect of which is to deem all or any
portion of the assets and liabilities of the Structured Investor to be consolidated
with the assets and liabilities of JPMorgan Chase & Co. or any of its Affiliates;
and (ii) “Reserve Increment” means at any time, a percentage equal to the product of
(A) 0.40% and (B) a fraction having (1) as its numerator, the lesser of 8.00% and
the percentage of reserves that JPMorgan Chase & Co. or any of its Affiliates
determines in its sole judgment is required to be maintained against the assets and
liabilities of the Structured Investor from time to time following the occurrence of
an Accounting Based Consolidation Event and (2) as its denominator, 8.00%.

     3. The following pricing grid shall be used to determine the Class A Facility
Fee Rate and the Class A Utilization Fee Rate:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Long-Term Issuer	 	Rating of Pier 1	 	 	 	 	 	 	 	 	 	 
	Credit Rating	 	Imports’ Corporate	 	 	 	 	 	 	 	 	 	 
	(Local Currency)	 	Family	 	 	 	 	 	Pricing	 	 	 	 
	 	 	 	 	 	 	 	 	Class A	 	 	 
	 	 	 	 	Class A Facility	 	 	Utilization Fee	 	 	 	 
	S&P	 	Moody’s	 	Fee Rate	 	 	Rate	 	 	Total	 
	BBB+
	 	Baa1	 	 	0.15	%	 	 	0.10	%	 	 	0.25	%
	BBB
	 	Baa2	 	 	0.20	%	 	 	0.10	%	 	 	0.30	%
	BBB-
	 	Baa3	 	 	0.25	%	 	 	0.15	%	 	 	0.40	%
	BB+, BB or BB-
	 	Ba1, Ba2 or Ba3	 	 	0.30	%	 	 	0.20	%	 	 	0.50	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	B+ or B
	 	B1 or B2	 	 	0.40	%	 	 	0.20	%	 	 	0.60	%
	B-
	 	B3	 	 	0.50	%	 	 	0.25	%	 	 	0.75	%

2

 

In the event of split ratings, the Class A Facility Fee Rate and the Class A
Utilization Fee Rate shall be determined by reference to the higher of the two
ratings; provided,  however, that if there is a difference of more
than one notch between the two ratings, the Class A Facility Fee Rate and the Class
A Utilization Fee Rate shall be determined by reference to the rating that is one
notch higher than the lower of the two ratings.

          This letter shall continue in full force and effect until the termination of the Purchase
Agreement in accordance with its terms and shall be binding upon, and shall inure to the benefit
of, the parties hereto and their respective successors and assigns; provided that neither
the Transferor nor the Servicer may assign any of its obligations hereunder without the prior
written consent of the Administrative Agent.

3

 

          THIS LETTER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK, WITHOUT GIVING EFFECT TO ITS CONFLICT OF LAWS PROVISIONS.

	 	 	 	 	 
	 	Very truly yours,

JPMORGAN CHASE BANK, N.A. (as successor to 

JPMorgan Chase Bank), as the Administrative 

Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Acknowledged and agreed as of this

19th day of September, 2005:

	 	 	 	 	 
	PIER 1 FUNDING, L.L.C.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	PIER 1 IMPORTS (U.S.), INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

4exv10w4

 

EXHIBIT 10.4

[Execution Copy]

SIXTH AMENDMENT AGREEMENT

          This Sixth Amendment Agreement (“Amendment”) is executed as of the 19th day of September,
2005, by and among Pier 1 Funding, L.L.C., a Delaware limited liability company, as transferor (the
“Transferor”), Pier 1 Imports (U.S.), Inc., a Delaware corporation, as servicer (the “Servicer”),
and Wells Fargo Bank, National Association (successor by merger to Wells Fargo Bank Minnesota,
National Association), a national banking association, as trustee (the “Trustee”).

W I T N E S S E T H:

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

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

          NOW, THEREFORE, the parties hereto agree as follows:

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

     (a) The definition of “Class B Minimum Required Amount” set forth in
Section 1.2 of the Supplement is amended and restated in its entirety to read as
follows:

       “Class B Minimum Required Amount” shall mean, at any time
of determination, (a) if Pier 1 Imports’ Long-Term Issuer Credit Rating
(Local Currency) is at least BB by Standard & Poor’s and Pier 1 Imports’
corporate family rating is at least Ba2 by Moody’s, the greater of (i) the
quotient obtained by dividing (A) 8.5% of the Class A Invested Amount at
such time by (B) 0.915, and (ii) the sum of (A) 3.0% of the Class A Purchase
Limit at such time and (B) 3.0% of the quotient obtained by dividing (1)
8.5% of the Class A Purchase Limit at such time by (2) 0.915; (b) if Pier 1
Imports’ Long-Term Issuer Credit Rating (Local Currency) is below BB by
Standard & Poor’s or Pier 1 Imports’ corporate family rating is below Ba2 by
Moody’s, the greater of (i) the quotient obtained by dividing (A) 12.0% of
the Class A Invested Amount at such time by (B) 0.88, and (ii) the sum of
(A) 3.0% of the Class A Purchase Limit at such

 

 

  time and (B) 3.0% of the quotient obtained by dividing (1) 12.0% of the
Class A Purchase Limit at such time by (2) 0.88.

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

       (i) a downgrade of Pier 1 Imports’ Long-Term Issuer Credit Rating
(Local Currency) to below B+ by Standard & Poor’s or a downgrade of Pier 1
Imports’ corporate family rating to below B1 by Moody’s or a withdrawal by
Standard & Poor’s of its rating of Pier 1 Imports’ Long-Term Issuer Credit
Rating (Local Currency) or a withdrawal by Moody’s of its rating of Pier 1
Imports’ corporate family;

     (c) The Transferor hereby confirms that it is the sole Holder of the Class B
Certificates and covenants that it will not sell, assign or otherwise transfer any
Class B Certificate or an interest therein without the prior written consent of the
Administrative Agent.

     (d) If the Class B Minimum Required Amount is increased as a consequence of
Pier 1 Imports’ Long-Term Issuer Credit Rating (Local Currency) falling below BB by
Standard & Poor’s or Pier 1 Imports’ corporate family rating is below Ba2 by
Moody’s, then notwithstanding anything to the contrary in the Agreement or the
Supplement, the Transferor shall immediately take action to cause the Class B
Invested Amount to at least equal such increased Class B Minimum Required Amount, as
follows:

       (i) the maximum face amount of the outstanding Class B Certificates
shall be deemed automatically to have been increased ratably such that after
giving effect to such increase, the aggregate maximum face amount of the
outstanding Class B Certificates equals $13,636,364, it being understood
that the Transferor may surrender the Class B Certificates for replacement
Class B Certificates reflecting the correct maximum face amounts;

       (ii) if the Transferor Amount exceeds the Minimum Transferor Amount,
the Class B Invested Amount shall automatically be increased by an amount
equal to the lesser of (A) the excess of the increased Class B Minimum
Required Amount over the Class B Invested Amount and (B) the largest amount
that will not result in the Transferor Amount being less than the Minimum
Transferor Amount, and the Trustee, in accordance with written instructions
from the Servicer, a copy of which shall be delivered to the Administrative
Agent, shall reflect such increase in its books and records; and

       (iii) if after giving effect to the foregoing increase in the Class B
Invested Amount, if any, the increased Class B Minimum Required Amount still
exceeds the Class B Invested Amount, then the Trustee, in

2

 

accordance with written instructions from the Servicer, shall retain
all Collections in respect of Principal Receivables received on each day in
the Principal Account until such time as the amount on deposit therein at
least equals an amount (the “Special Reduction Amount”) that, when applied
to reduce the Class A Invested Amount, will cause the Class B Invested
Amount to at least equal the increased Class B Minimum Required Amount,
whereupon, on the next succeeding Distribution Date, the Trustee, pursuant
to written instructions from the Servicer, shall withdraw the Special
Reduction Amount from the Principal Account and deposit it into the
Distribution Account, and the Paying Agent, on such Distribution Date, shall
pay the Special Reduction Amount ratably to the Class A Certificateholders
to reduce the Class A Invested Amount;

provided, however, that the Transferor may take such other steps to
cause the Class B Invested Amount to at least equal the increased Class B Minimum
Required Amount as may be approved in writing by the Administrative Agent.
Notwithstanding anything to the contrary in the Supplement, if within five Business
Days following the date of any reduction of Pier 1 Imports’ Long-Term Issuer Credit
Rating (Local Currency) below BB by Standard & Poor’s or Pier 1 Imports’ corporate
family rating is below Ba2 by Moody’s, and the resulting increase in the Class B
Minimum Required Amount, the Class B Invested Amount does not at least equal such
increased Class B Minimum Required Amount, then Series 2001-1 Certificateholders
evidencing Undivided Interests aggregating more than 50% of the Invested Amount of
any class of this Series 2001-1, by notice then given in writing to the Transferor,
the Servicer and the Trustee, may declare that a Series 2001-1 Pay Out Event has
occurred as of the date of such notice, it being understood that the Trustee shall
in no event be required to perform any obligation set forth herein, in the Agreement
or in the Supplement resulting from the occurrence of such Pay Out Event, unless the
Trustee has received such written notice. In addition, notwithstanding anything to
the contrary in the Supplement, if at any time the Class B Invested Amount is less
than the Class B Minimum Required Amount, no Principal Collections shall be paid to
the Holder of the Exchangeable Transferor Certificate as contemplated in Section
4.18(c) of the Supplement, but rather shall be retained in the Collection Account or
the Principal Account for distribution as described in clause (d)(iii) above or
otherwise in accordance with the other terms of the Supplement on the next
succeeding Distribution Date.

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

       Notwithstanding anything to the contrary in the Agreement or this
Series Supplement, if at any time (i) the rating of Pier 1’s Long-Term
Issuer Credit Rating (Local Currency) shall be reduced below BB by Standard
& Poor’s or Pier 1 Imports’ corporate family rating shall be reduced below
Ba2 by Moody’s or withdrawn by Moody’s or Standard & Poor’s or (ii) any
Insolvency Event shall have occurred, the Transferor and

3

 

the Servicer shall, within two (2) Business Days following the
occurrence of such event, instruct each retail outlet to which payments by
Obligors in respect of Receivables may be made to segregate such payments
from other funds held by such retail outlet and to remit such payments,
within two (2) days following receipt thereof, directly to the Collection
Account; provided, however, that the Transferor and the
Servicer shall not be obligated to so instruct such retail outlets if prior
to the date such instructions are required to be given, a letter of credit
or cash collateral account meeting the applicable requirements specified in
the definition of Store Payment Enhancement shall have been issued or
established, as applicable, for the benefit of the Trustee on behalf of the
Class A Certificateholders; provided, further, that if any
institution that has issued such a letter of credit or with which such a
cash collateral account is maintained shall cease to be an Eligible Store
Payment Enhancement Institution, then within thirty (30) days after becoming
aware of such fact the Transferor and the Servicer shall either (i) replace
such letter of credit or cash collateral account with a new letter of credit
or cash collateral account meeting the applicable requirements specified in
the definition of Store Payment Enhancement or (ii) instruct each retail
outlet to which payments by Obligors in respect of Receivables are made to
segregate such payments from other funds held by such retail outlet and to
remit such payments, within two (2) days following receipt thereof, directly
to the Collection Account.

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

                    SECTION 3. Miscellaneous.

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

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

                    3.3 Governing Law; Parties; Severability. This Amendment shall
be governed by and
construed in accordance with the laws and decisions (as opposed to the conflicts of law provisions)
of the State of New York. Whenever in this Amendment there is a reference made to any of the
parties hereto, such reference shall also be a reference to the successors and assigns of such
party, including, without limitation, any debtor-in-possession or trustee. The provisions of

4

 

this Amendment shall be binding upon and shall inure to the benefit of the successors and
assigns of the parties hereto. Whenever possible, each provision of this Amendment shall be
interpreted in such a manner as to be effective and valid under applicable law, but if any
provision of this Amendment shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity without invalidating the
remainder of such provision or the remaining provisions of this Amendment.

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

5

 

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

	 	 	 	 	 
	 	 	PIER 1 FUNDING, L.L.C.,
	 	 	   Transferor
	 

	 	By	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 
	 	 	PIER 1 IMPORTS (U.S.), INC.,
	 	 	   Servicer
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 	 	(successor by merger to Wells Fargo Bank
	 	 	Minnesota, National Association),
	 	 	   Trustee
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

[Consent to Amendment to Supplement Attached]

6

 

CONSENT TO AMENDMENT TO SUPPLEMENT

          The undersigned, constituting the Majority Investors under and as defined in the Certificate
Purchase Agreement dated as of September 4, 2001 (as heretofore amended, the “Purchase Agreement”),
among Pier 1 Funding, L.L.C., as the transferor, Pier 1 Imports (U.S.), Inc., as the servicer, the
Class A Purchasers named therein and JPMorgan Chase Bank, N.A. (as successor to Morgan Guaranty
Trust Company of New York), as the administrative agent, hereby consent to the terms and conditions
of the Sixth Amendment Agreement dated as of September 19, 2005, among Pier 1 Funding, L.L.C., as
transferor, Pier 1 Imports (U.S.), Inc., as servicer, and Wells Fargo Bank, National Association
(successor by merger to Wells Fargo Bank Minnesota, National Association), as trustee, relating to
the Series 2001-1 Supplement dated as of September 4, 2001, as heretofore amended, among the same
parties.

	 	 	 	 	 
	 	 	PARK AVENUE RECEIVABLES COMPANY, LLC (as
	 	 	successor to Delaware Funding Company, LLC), as
	 	 	the sole Structured Investor
	 
	 	 	 	 
	 	 	By JPMorgan Chase Bank, N.A., as attorney-in-fact
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as the sole
	 	 	Committed Investor
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]