Document:

BroadWebAsia, Inc.: Exhibit 10.38 - Prepared by TNT Filings Inc.

  

Exhibit 10.38

December 3, 2007

 

BroadWebAsia, Inc.

9255 Sunset Blvd.

West Hollywood, CA 90069

 

Re:   Consent to Secured Junior Debt

 

Gentlemen:

 

Reference is made to that certain $750,000 Senior Secured Note (the “Senior Note”), dated September 12, 2007, made by Broad WebAsia, Inc. (“BWA”) in favor of Lakewood Group, LLC (“Lakewood”). The Senior Note and the other Transaction Documents (as defined therein) contain certain prohibitions on BWA’s right to incur additional Indebtedness and create Liens on its assets (as such capitalized terms are defined in the Senior Note), including the restrictive covenants contained in Section 4 of the Senior Note.

It is Lakewood’s understanding that BWA desires to raise $600,000 of junior secured debt (the “Junior Debt”) from Europlay Capital Advisors, LLC and has requested that Lakewood consent to the incurrence of the Junior Debt and waive any provisions of the Transaction Documents which may be deemed to prohibit the incurrence of such Junior Debt.  Accordingly, subject to Lakewood and the holder of the Junior Debt entering into an Intercreditor Agreement, dated concurrently with this consent and waiver, and Lakewood’s approval of the documentation evidencing the Junior Debt (the “Junior Debt Documents”), Lakewood hereby consents, effective upon your acceptance below and payment of $14,000 to Lakewood as a consent fee, to the incurrence of the Junior Debt, including the creation of any Liens in connection therewith evidenced by the Junior Debt Documents.  Notwithstanding the consent evidenced hereby, it is understood and agreed that the Junior Debt shall not be deemed to be “Permitted Subordinated Indebtedness” for purposes of the Senior Note, including for purposes of determining the “Maturity Date” as defined in the Senior Note.

The consent set forth herein is based on the information provided to Lakewood by BWA.  BWA acknowledges and agrees that Lakewood shall retain all rights and remedies it may now have with respect to the Senior Debt and BWA’s obligations under the Transaction Documents.  By the consent granted hereunder, Lakewood does not waive BWA’s obligations to comply with any other of the provisions, covenants and terms of the Transaction Documents, nor shall it constitute a waiver of any future compliance or a waiver or release of any other right Lakewood may have at law or in equity.

Further, you have agreed that the definition of “Maturity Date” as set forth in Senior Note is hereby amended to read in its entirety as follows:

“Maturity Date” means the earlier of (i) March 4, 2008 and (ii) the occurrence of any financing (whether debt or equity) or series of such financings with an aggregate gross proceeds, directly or indirectly, to the Company of in excess of $750,000 (not including the Permitted Subordinated Indebtedness and the proceeds derived from the Transaction Documents).

By your execution, you confirm that, except as set forth above, all other terms and conditions of the Senior Note not modified hereby shall remain in full force and effect.

If you are in agreement with the foregoing, please indicate by signing in the space indicated below.

Lakewood Group, LLC

 

By:  Centurion Credit Management LP

 

By: _____________________________

       Name:

       Title:

 

 

Accepted and agreed to this ____

Day of December, 2007, by:

 

BROADWEBASIA, INC.

By:________________________

Its:________________________exhibit1046.htm

    

    MODIFICATION
AGREEMENT

     

    THIS
MODIFICATION AGREEMENT, dated as of November 30, 2007 (this “Agreement”), of that
certain Credit Agreement referenced below is by and among TEMPUR WORLD, LLC, a
Delaware limited liability company (as successor by merger to Tempur World
Holdings, LLC, a Delaware limited liability company, and Tempur-Pedic, Inc., a
Kentucky corporation), and TEMPUR PRODUCTION USA, INC., a Virginia corporation,
as Domestic Borrowers, DAN-FOAM ApS, a private limited liability company
existing under the laws of Denmark, as Foreign Borrower, TEMPUR-PEDIC
INTERNATIONAL INC., a Delaware corporation, and certain of its subsidiaries and
affiliates, as Domestic Guarantors, TEMPUR WORLD HOLDINGS, S.L., a company
organized under the laws of Spain, and TEMPUR DANMARK A/S, a stock company
existing under the laws of Denmark, as Foreign Guarantors, the Lenders party
hereto, the L/C Issuers party hereto, BANK OF AMERICA, N.A., as Administrative
Agent and Domestic Collateral Agent, and NORDEA BANK DANMARK A/S, as Foreign
Collateral Agent. Capitalized terms used but not otherwise defined herein shall
have the meanings provided in the Credit Agreement.

     

    W I T N E
S S E T H

     

    WHEREAS,
a $340 million term loan and revolving credit facility was established in favor
of the Borrowers pursuant to the terms of that certain Credit Agreement, dated
as of October 18, 2005 (as amended, restated, extended, supplemented or
otherwise modified, the “Credit Agreement”),
among the Borrowers named therein, the Guarantors named therein, the Lenders
party thereto, the Administrative Agent, the Domestic Collateral Agent and the
Foreign Collateral Agent;

     

    WHEREAS,
pursuant to Amendment No. 1 to the Credit Agreement, dated as of February 8,
2006, the Lenders agreed to certain modifications to the terms of the Credit
Agreement, including a $60 million increase in the Domestic Revolving
Commitments and a $10 million reduction in the Foreign Revolving Commitments,
resulting in $390 million in revolving credit and term loan commitments under
the Credit Agreement;

     

    WHEREAS,
pursuant to Amendment No. 2 and Consent to the Credit Agreement, dated as of
December 13, 2006, the Lenders agreed to certain modifications to the terms of
the Credit Agreement, including a $70 million increase in the Domestic Revolving
Commitments, resulting in approximately $394 million in domestic and foreign
revolving and term loan commitments under the Credit Agreement, and
incorporation of an accordion option (as Section 2.01(h)) to permit up to $50
million of additional Domestic Revolving Commitments upon satisfaction of
certain conditions;

     

    WHEREAS,
pursuant to the Modification Agreement, dated as of February 22, 2007, certain
Domestic Revolving Lenders provided a $50 million increase in the Domestic
Revolving Commitments pursuant to Section 2.01(h) of the Credit Agreement,
resulting in approximately $441 million in domestic and foreign revolving and
term loan commitments under the Credit Agreement;

     

    WHEREAS,
pursuant to Amendment No. 3 and Consent to the Credit Agreement, dated as of
June 8, 2007, the Lenders agreed to certain modifications to the terms of the
Credit Agreement, including a $122 million increase in the Domestic Revolving
Commitments and a $30 million increase in the Foreign Revolving Commitments,
resulting in approximately $540 million in domestic and foreign revolving
commitments under the Credit Agreement, and refreshment of the accordion option
in Section 2.01(h) to permit up to $100 million of additional Domestic Revolving
Commitments upon satisfaction of certain conditions;

     

    WHEREAS,
pursuant to the Modification Agreement, dated as of August 6, 2007, certain
Revolving Lenders provided a $100 million increase in the Domestic Revolving
Commitments pursuant to Section 2.01(h) of the Credit Agreement, resulting in
approximately $640 million in domestic and foreign revolving commitments under
the Credit Agreement;

     

    WHEREAS,
the Borrowers have requested certain modifications to the terms of the Credit
Agreement, including, among other things, to increase the Aggregate Domestic
Revolving Commitments by $25 million and to permit the Foreign Borrower to
reduce the Aggregate Foreign Revolving Commitments by $25 million on a non-pro
rata basis.

     

    WHEREAS,
the Administrative Agent and the Lenders have agreed to the requested
modifications on the terms and conditions set forth herein;

     

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

     

    1. Increase in Domestic
Revolving Commitments. Each of the Domestic Revolving Lenders party to
this Agreement agrees to provide Domestic Revolving Commitments under the Credit
Agreement as set forth on Schedule 2.01
attached hereto. The Domestic Revolving Commitment Percentages are revised to be
as set forth on Schedule 2.01
attached hereto.

     

    2. Permanent Partial Reduction
of Foreign Revolving Commitments. The Credit Parties and the Lenders
agree that, notwithstanding any provision to the contrary contained in the
Credit Agreement, the Foreign Revolving Commitments are hereby permanently
reduced on a non-pro rata basis as set forth on Schedule 2.01
attached hereto, and the Foreign Revolving Commitments that have been
permanently reduced hereby may not be reinstated without the written consent of
the Required Lenders. The Foreign Revolving Commitment Percentages are revised
to be as set forth on Schedule 2.01
attached hereto.

     

    3. Amendment of Schedule 2.01
to the Credit Agreement. Schedule 2.01 to the Credit Agreement is amended
as set forth on Schedule 2.01
attached hereto.

     

    4. Conditions Precedent.
This Agreement shall be effective immediately upon receipt by the Administrative
Agent of all of the following, each in form and substance satisfactory to the
Administrative Agent and the Lenders:

     

    (a) Executed Agreement.
Counterparts of this Agreement duly executed by the Credit Parties and the
Required Lenders;

     

    (b) Secretary’s
Certificate. A duly executed certificate of a Responsible Officer of each
of the Domestic Borrowers and the Domestic Guarantors, attaching each of the
following documents and certifying that each is true, correct and complete and
in full force and effect as of the date of this Agreement:

     

    (i) Charter Documents.
Copies of its articles or certificate of incorporation or formation or
equivalent, certified to be true, correct and complete as of a recent date by
the appropriate Governmental Authority of the jurisdiction of its organization
or formation, unless a Responsible Officer certifies in the secretary’s
certificate that articles or certificate of incorporation or formation
previously delivered to the Administrative Agent at the closing of Amendment No.
3 has not been amended, supplemented or otherwise modified and remain in full
force and effect as of the date hereof;

     

    (ii) Bylaws. Copies of its
bylaws, operating agreement or partnership agreement, unless a Responsible
Officer certifies in the secretary’s certificate that the bylaws previously
delivered to the Administrative Agent at the closing of Amendment No. 3 have not
been amended, supplemented or otherwise modified and remain in full force and
effect as of the date hereof;

     

    (iii) Resolutions. Copies
of its resolutions approving and adopting this Agreement, the transactions
contemplated herein, and authorizing the execution and delivery
hereof;

     

    (iv) Incumbency.
Incumbency certificates identifying its Responsible Officers who are authorized
to execute this Agreement and related documents and to act on its behalf in
connection with this Agreement and the Credit Documents, unless a Responsible
Officer certifies in the secretary’s certificate that the incumbency
certificates previously delivered to the Administrative Agent at the closing of
Amendment No. 3 have not been amended, supplemented or otherwise modified and
remain in full force and effect as of the date hereof; and

     

    (v) Good Standing
Certificates. A certificate of good standing or the equivalent from its
jurisdiction of organization or formation certified as of a recent date by the
appropriate Governmental Authority.

     

    (c) Legal Opinions.
Opinions of legal counsel to the Domestic Borrowers and the Domestic Guarantors
in form and substance acceptable to the Administrative Agent.

     

    (d) Fees and Expenses.
Payment of all fees and expenses (including fees and expenses of counsel to the
Administrative Agent) in connection with this Agreement.

     

    For
purposes of determining compliance with the conditions specified in this Section 4, each of
the Lenders that has signed this Agreement shall be deemed to have consented to,
approved or accepted or to be satisfied with, each document or other matter
required hereunder to be consented to or approved by or acceptable or
satisfactory to a Lender, unless the Administrative Agent shall have received
notice from such Lender prior to the effectiveness of this Agreement specifying
its objection thereto.

     

    5. Effectiveness of
Agreement. Upon execution and delivery of this Agreement, all references
to the Credit Agreement in each of the Credit Documents shall hereafter mean the
Credit Agreement as modified by this Agreement. Except as specifically modified
or amended hereby or otherwise agreed in writing, the Credit Agreement and the
other Credit Documents (including, in each case, schedules and exhibits thereto)
are hereby ratified and confirmed and shall remain in full force and effect
according to its terms.

     

    6. Representations and
Warranties; Defaults. Each of the Borrowers and the Guarantors affirms
the following:

     

    (a) all
necessary action to authorize the execution, delivery and performance of this
Agreement has been taken;

     

    (b) after
giving effect to this Agreement, the representations and warranties set forth in
the Credit Agreement and the other Credit Documents are true and correct in all
material respects as of the date hereof (except those which expressly relate to
an earlier period);

     

    (c) before
and after giving effect to this Agreement, no Default or Event of Default shall
exist; and

     

    (d) the liens
and security interests created and granted in the Credit Documents remain in
full force and effect, and this Agreement is not intended to adversely affect or
impair such liens and security interests in any manner.

     

    7. Guarantor
Acknowledgments.

     

    (a) Each
Domestic Guarantor hereby (i) acknowledges and consents to all of the terms and
conditions of this Agreement, (ii) reaffirms that, jointly and severally
together with the other Domestic Guarantors, it guarantees the prompt payment
and performance of their obligations as provided in Article IV of the Credit
Agreement and (iii) acknowledges and agrees that the such obligations will
include any Obligations with respect to or resulting from the increase in the
Aggregate Domestic Revolving Committed Amount as provided
hereunder.

     

    (b) Each
Foreign Guarantor hereby (i) acknowledges and consents to all of the terms and
conditions of this Agreement and (ii) reaffirms that, jointly and severally
together with the other Foreign Guarantors, it guarantees the prompt payment and
performance of their obligations as provided in Article IV of the Credit
Agreement.

     

    8. Domestic Revolving Lenders’
Representation and Warranties. Each of the Domestic Revolving Lenders
party to this Agreement represents and warrants that it has full power and
authority, and has taken all action necessary, to execute and deliver this
Agreement and to consummate the transactions contemplated hereby.

     

    9. Full Force and
Effect. Except as modified hereby, all of the terms and provisions of the
Credit Agreement and the other Credit Documents (including schedules and
exhibits thereto) shall remain in full force and effect.

     

    10. Counterparts. This
Agreement may be executed in any number of counterparts, each of which when so
executed and delivered shall be deemed an original, and it shall not be
necessary in making proof of this Agreement to produce or account for more than
one such counterpart. Delivery by any party hereto of an executed counterpart of
this Agreement by facsimile shall be effective as such party’s original executed
counterpart and shall constitute a representation that such party’s original
executed counterpart will be delivered.

     

    11. Fees and Expenses.
Pursuant to Section 11.04(a) of the Credit Agreement, the Domestic Borrowers
shall pay all reasonable costs and expenses of the Administrative Agent in
connection with the preparation, execution and delivery of this Agreement,
including the reasonable fees and expenses of Moore & Van Allen,
PLLC.

     

    12. Governing Law. This
Agreement shall be governed by, and construed in accordance with, the law of the
State of New York.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

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

    
       

       

      
        	
                DOMESTIC
      BORROWERS:

              	TEMPUR
      WORLD, LLC (as successor by merger to Tempur World Holdings, LLC, a
      Delaware limited liability company, and Tempur-Pedic, Inc., a Kentucky
      corporation), a Delaware limited liability company
	 	 	 	 
	
                
                   

                

              	
                By:
    

              	/s/ WILLIAM H.
    POCHE	 
	 	 	Name: William H. Poche	 
	 	 	Title: Treasurer and Assistant
      Secretary	 
	 	 	 	 

      

    

     

    
      	
               

            	TEMPUR
      PRODUCTION USA, INC., a Virgina corporation
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ WILLIAM H.
    POCHE	 
	 	 	Name: William H. Poche	 
	 	 	Title: Treasurer 	 
	 	 	 

    

     

    
      	
              FOREIGN BORROWER:

            	DAN-FOAM
      ApS, a private limited liability company existing under the laws of
      Denmark
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ DALE
      E. WILLIAMS	 
	 	 	Name: Dale E. Williams	 
	 	 	Title: Attorney in Fact	 
	 

    

     

    
      	
              DOMESTIC
      GUARANTORS:

            	TEMPUR-PEDIC
      INTERNATIONAL INC., a Delaware corporation
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ WILLIAM H.
    POCHE	 
	 	 	Name: William H. Poche	 
	 	 	Title: Treasurer and Assistant
      Secretary	 
	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               

            	TEMPUR-PEDIC
      NORTH AMERICA, INC., a Delaware corporation (formerly known as
      Tempur-Pedic Retail, Inc. and as Tempur-Pedic NA, Inc. and successor in
      interest to Tempur-Pedic Medical, Inc. and Tempur-Pedic, Direct Response,
      Inc.)
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ WILLIAM H.
    POCHE	 
	 	 	Name: William H. Poche	 
	 	 	Title: Treasurer and
      Secretary	 
	 

    

     

    
      	
               

            	DAWN
      SLEEP TECHNOLOGIES, INC., a Delaware corporation
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ WILLIAM H.
    POCHE	 
	 	 	Name: William H. Poche	 
	 	 	Title: Treasurer and
      Secretary	 
	 

    

     

    
      	
               

            	TEMPUR-PEDIC
      TECHNOLOGIES, INC., a Delaware corporation
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ WILLIAM H.
    POCHE	 
	 	 	Name: William H. Poche	 
	 	 	Title: Treasurer and
      Secretary	 
	 

    

     

    
      	
              FOREIGN GUARANTORS:

            	TEMPUR
      WORLD HOLDINGS, S.L., a company organized under the laws of
  Spain
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ DALE
      E. WILLIAMS	 
	 	 	Name: Dale E. Williams	 
	 	 	Title: Director	 
	 

    

     

    
      	
               

            	TEMPUR
      DANMARK A/S, a stock company existing under the laws of
  Denmark
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ DALE
      E. WILLIAMS	 
	 	 	Name: Dale E. Williams	 
	 	 	Title: Attorney in Fact	 
	 

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    
      	
              ADMINISTRATIVE
      AGENT:

            	 BANK
      OF AMERICA, N.A., as Administrative Agent and Domestic Collateral
      Agent
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ KRISTINE
    THENNES	 
	 	 	Name: Kristine Thennes	 
	 	 	Title: Vice President	 
	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              LENDERS:

            	 BANK
      OF AMERICA, N.A., as Domestic L/C Issuer and as a Lender
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ THOMAS
      C. KILCREASE, JR.	 
	 	 	Name: Thomas C. Kilcrease,
      Jr.	 
	 	 	Title: SVP	 
	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                 

              	 NORDEA
      BANK DANMARK A/S, as Foreign L/C Issuer, Foreign Swingline Lender, Foreign
      Collateral Agent and a Lender
	 	 	 
	
                
                   

                

              	
                By:
    

              	/s/ HANS
      CHRISTIANSEN	 
	 	 	Name: Hans Christiansen	 
	 	 	Title: Head of
Corporate	 
	 	 	 	 
	 	 	 	 
	 	 By:  	KAJ SKOUBOE 	 
	 	 	Name: Kaj Skouboe	 
	 	 	Title: Region Branch
      Manager 	 
	 

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	FIFTH
      THIRD BANK, as a Lender and Domestic Swingline Lender
	 	 	 
	
                
                   

                

              	
                By:
    

              	/s/ MONICA
      M. MUCCI	 
	 	 	Name: Monica M. Mucci	 
	 	 	Title: Officer	 
	 

         

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
      	
               

            	SUNTRUST
      BANK, as a Lender
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ KAP
      YARBROUGH	 
	 	 	Name: Kap Yarbrough	 
	 	 	Title: Vice President	 
	 

       

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
      	
               

            	JPMORGAN
      CHASE BANK, N.A.,
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ ROBERT
      S. SHEPPARD	 
	 	 	Name: Robert S.
Sheppard	 
	 	 	Title: Vice President	 
	 

       

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

     

    
      	
               

            	WELLS
      FARGO BANK, N.A.,
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ BRYAN
      HULLER	 
	 	 	Name: Bryan Huller	 
	 	 	Title: Vice President	 
	 

       

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
               

            	NATIONAL
      CITY BANK, as a Lender
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ SUSAN
      A. DEAN	 
	 	 	Name: Susan A. Dean	 
	 	 	Title: SVP	 
	 

    

     

     

    
    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      	
               

            	REGIONS
      BANK, as a Lender
	 	 	 
	
              
                 

              

            	
              By:
    

            	/s/ SCOTT
      CORLEY	 
	 	 	Name: Scot Corley	 
	 	 	Title: SVP

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