Document:

Exhibit 10.1 

 

WELLS FARGO CAPITAL FINANCE

One Boston Place

Boston, MA 02108

 

October 29, 2018

 

Trans World Entertainment Corporation, as Lead Borrower

38 Corporate Circle

Albany, New York 12203

 

	 	Re:	Store Closures – Trans World Entertainment Corporation, et al.

 

Ladies and Gentlemen:

 

Reference is made to that
certain Second Amended and Restated Credit Agreement, dated as of January 17, 2017 (as amended, restated, supplemented or otherwise
modified and in effect from time to time, the “Credit Agreement”), by and among Trans World Entertainment Corporation,
Record Town, Inc., Record Town USA, LLC, Trans World New York, LLC, Trans World Florida, LLC, Record Town Utah, LLC, and Etailz
Inc. (each such Person, individually a “Borrower” and collectively the “Borrowers”), the
Guarantors party thereto from time to time (the Borrowers and such Guarantors are hereinafter referred to as the “Loan
Parties”), the Lenders party thereto from time to time, and Wells Fargo Bank, National Association, as Administrative
Agent and Collateral Agent (in such capacities, the “Agent”), L/C Issuer and Swingline Lender. Capitalized terms
used herein but not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement.

 

The
Lead Borrower has advised the Agent that the Loan Parties have closed thirty-three (33) Stores to date in this Fiscal Year (the
“Completed Store Closures”), and have further advised the Agent of Borrowers’ desire and intention to
close up to thirty-five (35) additional Stores (the “Remaining Store Closures”, and, together with the Completed
Store Closures, collectively, the “2018 Fiscal Year Store Closures”) prior to the conclusion of this Fiscal
Year ending February 2, 2019 (the “2018 Fiscal Year”). Because the 2018 Fiscal Year Store Closures will exceed
thirty-five (35) Store closures in the aggregate in the 2018 Fiscal Year, absent the consent of the Agent and the Required Lenders,
the bulk sales or other Dispositions of the Inventory of the Loan Parties in connection with the 2018 Fiscal Year Store Closures
(i) would not constitute a Permitted Disposition pursuant to clause (b) of the definition thereof in the Credit Agreement, (ii)
would violate Section 7.05 of the Credit Agreement, and (iii) would constitute an Event of Default under Section 8.01(b) of the
Credit Agreement. Accordingly, the Lead Borrower has requested that the Agent and the Required Lenders
provide their respective Consent to the Lead Borrower and/or its Subsidiaries’ exceeding the permitted number of Store closures
and related Inventory Dispositions as set forth in Section 7.05 of the Credit Agreement and the definition of Permitted Disposition,
as contemplated by the 2018 Fiscal Year Store Closures.

 

In accordance with Section
10.01 of the Credit Agreement, the Agent and the Required Lenders have agreed to provide such Consent, subject to the terms and
conditions of this letter agreement (this “Letter Agreement”).

    	 

    	

    

Trans World Entertainment Corporation, as Lead Borrower

October 29, 2018

Page 2

 

Accordingly, the parties
hereto hereby agree as follows:

 

		1.	Consent.

 

		a.	The Agent and the Required Lenders hereby Consent to the Lead Borrower
and/or its Subsidiaries’ exceeding the permitted number of Store closures and related Inventory Dispositions as set forth
in Section 7.05 of the Credit Agreement and the definition of Permitted Disposition, as contemplated by the 2018 Fiscal Year Store
Closures; provided, that absent the further consent of the Agent and the Required Lenders (which consent may be granted,
denied, withheld, delayed and/or conditioned in Agent’s and Required Lenders’ discretion), (x) the Remaining Store
Closures shall not exceed thirty-five (35) in the aggregate, and (y) the 2018 Fiscal Year Store
Closures shall not exceed sixty-eight (68) in the aggregate. If, following the execution and delivery of this Letter Agreement,
the Lead Borrower advises the Agent of a further desire and intention to close any additional Stores
prior to the end of the 2018 Fiscal Year (“Additional Store Closures”), such
Additional Store Closures shall be subject to the prior written Consent of the Agent and the Required Lenders, which Consent
may be granted, denied, withheld, delayed and/or conditioned in Agent’s and Required Lenders’ discretion.

 

		b.	In accordance the Credit Agreement, the Remaining Store Closures (and any Additional Store Closures,
if any) shall be made in accordance with liquidation agreements or formal consulting arrangements with professional liquidators
or liquidation consultants, in each case reasonably acceptable to the Agent. The Agent hereby confirms that certain Consulting
Agreement dated October 19, 2018 by and between TIGER CAPITAL GROUP, LLC and RECORD TOWN, INC. is reasonably acceptable to the
Agent.

 

		c.	Anything in the Credit Agreement to the contrary notwithstanding (including solely with respect
to the Remaining Store Closures, the definition of “Borrowing Base” thereunder),
the Lead Borrower shall be permitted to include within the calculation of Eligible Inventory for purposes of calculating the Borrowing
Base all inventory located in each Store at which the Remaining Store Closures (and any Additional Store
Closures) are being conducted (hereinafter, the “Remaining Store Closure Inventory”); provided,
that (x) the Lead Borrower shall report the aggregate amount of such Remaining Store Closure Inventory as a separate line item
in any Borrowing Base Certificate delivered to the Agent, and (y) the Appraisal Percentage applicable to such Remaining Store Closure
Inventory in each such Borrowing Base Certificate shall be subject to adjustment on a weekly basis by the Agent in such amount
as may be agreed by the Lead Borrower, Agent and such independent professional liquidation company engaged by the Lead Borrower
in connection with the Remaining Store Closures, and in any case as Agent shall determine from time
to time in the exercise of it’s reasonable discretion.

    	 

    	

    

Trans World Entertainment Corporation, as Lead Borrower

October 29, 2018

Page 3

 

		d.	The Consent provided herein shall in no way constitute a modification
or waiver of any other obligations of the Loan Parties under the Credit Agreement or any other Loan Documents, each of which remains
in full force and effect. It is hereby agreed to and understood by the parties that the consent provided herein is a one-time Consent
related to the 2018 Fiscal Year Store Closures in the 2018 Fiscal Year only and is not an amendment
to the Credit Agreement with respect to any other restrictions on Permitted Dispositions on any other occasion, nor is it a waiver
of any Default or Event of Default now existing or hereafter arising under the Credit Agreement. 

 

		2.	Miscellaneous. 

 

		a.	The Loan Parties represent and warrant
                                                            that, after giving effect to this Letter Agreement, no Default or
                                                            Event of Default now exists and is continuing.

 

		b.	Except
                                                            as expressly waived or modified herein, all other terms and conditions
                                                            of the Credit Agreement and the other Loan Documents remain in full
                                                            force and effect. This Letter Agreement shall constitute a Loan Document
                                                            for all purposes.

 

		c.	This
                                                            Letter Agreement and the other Loan Documents constitute the entire
                                                            contract among the parties relating to the subject matter hereof and
                                                            supersede any and all contemporaneous or previous agreements and understandings,
                                                            oral or written, relating to the subject matter hereof.

 

		d.	This
                                                            Letter Agreement 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. Delivery of an
                                                            executed counterpart of a signature page of this Letter Agreement
                                                            by telecopy or other electronic transmission shall be effective as
                                                            delivery of a manually executed counterpart of this Letter Agreement.

 

		e.	Any
                                                            provision of this Letter Agreement held to be invalid, illegal or
                                                            unenforceable in any jurisdiction shall, as to such jurisdiction,
                                                            be ineffective to the extent of such invalidity, illegality or unenforceability
                                                            without affecting the validity, legality and enforceability of the
                                                            remaining provisions hereof, and the invalidity of a particular provision
                                                            in a particular jurisdiction shall not invalidate such provision in
                                                            any other jurisdiction.

 

		f.	The
                                                            Loan Parties represent and warrant that they have consulted with independent
                                                            legal counsel of their selection in connection with this Letter Agreement
                                                            and are not relying on any representations or warranties of the Agent
                                                            or the Lenders or their respective counsel in entering into this Letter
                                                            Agreement.

 

[Remainder of Page Intentionally Left Blank]

    	 

    	

    

Trans World Entertainment Corporation, as Lead Borrower

October 29, 2018

Page 4

 

		g.	This Letter Agreement shall be governed by, and construed in accordance with, the laws of the State
of New York, without giving effect to the conflicts of laws principles thereof.

 

[Signature Pages Follow]

    	 

    	

    

Trans World Entertainment Corporation, as Lead Borrower

October 29, 2018

Page 5

 

If the foregoing correctly
sets forth our understanding, please indicate your agreement by signing below.

 

	 	Very truly yours,
	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, Collateral Agent, and Required Lender
	 	 
	 	By:	 /s/ Scott
    Klebenoff  	 
	 	Name: 	Scott Klebanoff
	 	Title: 	Assistant Vice President

    	 

    	

    

Trans World Entertainment Corporation, as Lead Borrower

October 29, 2018

Page 6

 

The foregoing is acknowledged, agreed and accepted:

 

TRANS WORLD ENTERTAINMENT 

CORPORATION, as Lead Borrower and as 

a Borrower

 

	By:	/s/ Edwin Sapienza	 
	Name:	Edwin Sapienza
	Title:	Chief Financial Officer
	 	 
	RECORD TOWN, INC., as a Borrower
     
	 	 
	By:	/s/ Edwin Sapienza	 
	Name:	Edwin Sapienza
	Title:	Chief Financial Officer
	 	 
	RECORD TOWN USA, LLC, as a 
    Borrower
	 	 
	By:	/s/ Edwin Sapienza	 
	Name:	Edwin Sapienza
	Title:	Chief Financial Officer
	 	 
	TRANS WORLD NEW YORK, LLC, as a Borrower
	 	 
	By:	/s/ Edwin Sapienza	 
	Name:	Edwin Sapienza
	Title:	Chief Financial Officer
	 	 
	TRANS WORLD FLORIDA, LLC, as a Borrower
	 	 
	By:	/s/ Edwin Sapienza	 
	Name:	Edwin Sapienza
	Title:	Chief Financial Officer

    	 

    	

    

Trans World Entertainment Corporation, as Lead Borrower

October 29, 2018

Page 7

 

	RECORD TOWN UTAH, LLC, as a Borrower
	 	 
	By:	/s/ Edwin Sapienza	 
	Name:	Edwin Sapienza
	Title:	Chief Financial Officer
	 	 
	ETAILZ INC., as a Borrower
	 	 
	By:	/s/ Edwin Sapienza	 
	Name:	Edwin Sapienza
	Title:	Chief Financial OfficerExhibit

Exhibit 10.1

FIRST AMENDMENT TO BRIDGE LOAN CREDIT AGREEMENT

FIRST AMENDMENT TO BRIDGE LOAN CREDIT AGREEMENT (this “Amendment”) dated as of July 18, 2018 among Westmoreland Coal Company, a Delaware corporation (the “Administrative Borrower”), Prairie Mines & Royalty ULC, an Alberta corporation (the “Canadian Borrower”), Westmoreland San Juan, LLC, a Delaware limited liability company (the “San Juan Borrower”, and together with the Administrative Borrower and the Canadian Borrower, collectively, the “Borrowers” and each a “Borrower”), certain subsidiaries of the Administrative Borrower party hereto (collectively, the “Guarantors” and each, individually, a “Guarantor”), and Wilmington Savings Fund Society, FSB, as Administrative Agent.  Unless otherwise indicated, all capitalized terms used herein and not otherwise defined shall have the respective meanings provided to such terms in the Bridge Loan Credit Agreement referred to below.
WITNESSETH
WHEREAS, each Borrower, the Lenders and Wilmington Savings Fund Society, FSB, as Administrative Agent, are parties to the Terms of Bridge Loans, dated as of May 21, 2018 (as may be amended, modified and/or supplemented to, but not including, the date hereof, the “Bridge Loan Credit Agreement”), as set forth on Exhibit L to the Term Loan Credit Agreement dated as of December 16, 2014; and
WHEREAS, subject to the terms and conditions of this Amendment, the parties hereto wish to amend the Bridge Loan Credit Agreement as herein provided;
NOW, THEREFORE, it is agreed:
Section 1.01    Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Bridge Loan Credit Agreement.
Section 1.02    Amendments to the Bridge Loan Credit Agreement.  The definition of “First Lien Intercreditor Agreement” in Section 1.01 of the Bridge Loan Credit Agreement is hereby amended to replace “the Effective Date” with “June 5, 2018”.
ARTICLE II     
Miscellaneous Provisions.
Section 2.01    Representations and Warranties.    In order to induce the Administrative Agent to enter into this Amendment, each Borrower hereby represents and warrants that:
		
	(a)
	each Credit Party has the power and authority to execute, deliver and perform its obligations under this Amendment and under each of the Credit Documents as amended or supplemented hereby to which it is a party, and, in the case of each Borrower, to make the borrowing contemplated hereunder, and has taken all necessary action to authorize its execution, delivery and performance of this Amendment and each Credit Document as amended or supplemented hereby to which it is a party. Each Credit Party has duly executed and delivered this Amendment, and this Amendment and each Credit 

(Signature Page to First Amendment to Bridge Loan Credit Agreement)

Document, as amended or supplemented hereby, constitutes its legal, valid and binding obligation enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ right and by equitable principles (regardless of whether enforcement is sought by proceeding in equity or at law);
		
	(b)
	no order, consent, approval, license, authorization or validation of, or filing, recording or registration with (except for those that have otherwise been obtained or made), or exemption or other action by, any Governmental Authority is required to be obtained or made by, or on behalf of any Credit Party in connection with the execution, delivery and performance of this Amendment or any Credit Document, as amended or supplemented hereby, or the legality, validity, binding effect or enforceability of this Amendment or any such Documents as amended or supplemented hereby; and

		
	(c)
	the execution, delivery and performance of this Agreement and of the other Credit Documents, as amended or supplemented hereby, the borrowings hereunder and the use of the proceeds thereof will not (i) contravene any provision of any law, statute, rule or regulation or any order, writ, injunction or decree of any court or Governmental Authority, (ii) require any consent under, or violate or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, any Lien (other than Permitted Liens) upon any of the property or assets of any Credit Party or any of its Subsidiaries pursuant to the terms of the Bridge Loan Credit Agreement or any indenture, mortgage, deed of trust, other credit agreement or loan agreement, or any other material agreement, contract or instrument, in each case to which any Credit Party or any of its Subsidiaries is a party or by which it or any its property or assets is bound, (iii) result in the creation or imposition of (or the obligation to create or impose) any Lien pursuant to the terms of the documents described in clause (ii) immediately above or (iv) violate any provision of the certificate or articles of incorporation, certificate of formation, limited liability company agreement or by-laws (or equivalent organizational documents), as applicable, of any Credit Party or any of its Subsidiaries, except in each case referred to in clauses (i), (ii) and (iii) to the extent that any such violation or breach would not reasonably be expected to have a Material Adverse Effect.

Section 2.02    No Waiver.    This Amendment is limited precisely as written and shall not be deemed to (i) be a waiver of or a consent to the modification of or deviation from any other term or condition of the Bridge Loan Credit Agreement, any other Credit Documents or any of the other instruments or agreements referred to therein or (ii) prejudice any right or rights which any of the Lenders or the Administrative Agent now have or may have in the future under or in connection with the Bridge Loan Credit Agreement, any other Credit Documents or any of the other instruments or agreements referred to therein.
Section 2.03    Binding Effect.  By executing and delivering a counterpart hereof, each Borrower and each Guarantor hereby agrees that all Loans shall be guaranteed and secured pursuant 

     

to and in accordance with the terms and provisions of each of the Guaranty and Collateral Agreement and the other Security Documents in accordance with the terms and provisions thereof.
Section 2.04    Counterparts.  This Amendment may be executed in any number of counterparts (including by way of facsimile or other electronic transmission) and by the different parties hereto on separate counterparts, each of which counterparts when executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.
Section 2.05    GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.
Section 2.06    Conditions to Effectiveness.  The amendments set forth in this Amendment shall become effective on the date (the “First Amendment Effective Date”) when each of the following conditions shall have been satisfied or waived by the applicable party:
(a)    the Administrative Agent shall have received from each Borrower, each other Credit Party and the Administrative Agent an executed counterpart hereof or other written confirmation (in form satisfactory to the Administrative Agent) that such party has signed a counterpart hereof; and
(b)    this Amendment shall have been delivered to the Lenders, and this Amendment shall not have been objected to in writing by the Required Lenders within five (5) Business Days following receipt of notice hereof.
Section 2.07    References.   From and after the First Amendment Effective Date, all references in the Bridge Loan Credit Agreement and each of the other Credit Documents to the Bridge Loan Credit Agreement shall be deemed to be references to the Bridge Loan Credit Agreement as modified by each of the amendments effected on such date, as the context may require. This Amendment shall constitute a “Credit Document” for purposes of the Bridge Loan Credit Agreement and the other Credit Documents.

Signature pages follow.

     

IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written.

BORROWERS:

	
			
	 
	WESTMORELAND COAL COMPANY

By:___/s/ Jennifer S. Grafton_______________ 
   Name: Jennifer S. Grafton 
   Title: Chief Administrative Officer, Chief  Legal Officer and Secretary

	 
	PRARIE MINES & ROYALTY, ULC

By:___/s/ Jennifer S. Grafton_______________ 
   Name: Jennifer S. Grafton 
   Title: Assistant Secretary

WESTMORELAND SAN JUAN, LLC

By:___/s/ Samuel N. Hagreen_______________ 
   Name: Samuel N. Hagreen 
   Title: Secretary

	 
	 

(Signature Page to First Amendment to Bridge Loan Credit Agreement)

	
	
	WILMINGTON SAVINGS FUND SOCIETY, FSB, as Administrative Agent

By:  ____/s/ Geoffrey J. Lewis_______________ 
   Name: Geoffrey J. Lewis 
   Title: Vice President

(Signature Page to First Amendment to Bridge Loan Credit Agreement)

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