Document:

mm11-2114_8ke101.htm

Exhibit 10.1

 

EXECUTION COPY

SUPPORT AGREEMENT

 

This Support Agreement, dated November 20, 2014 (this “Agreement”), is by and among (i) Third Point LLC, Third Point Partners Qualified L.P., Third Point Partners L.P., Third Point Offshore Master Fund L.P., Third Point Ultra Master Fund L.P. and Third Point Reinsurance Co. Ltd. (collectively, “Third Point”, and each individually, a “member” of Third Point) and (ii) The Dow Chemical Company (the “Company”).

 

WHEREAS, Third Point and its Affiliates beneficially own 27,500,000 shares of common stock of the Company, par value $2.50 (the “Common Stock”) of the Common Stock issued and outstanding on the date hereof; and

 

WHEREAS, the Company has determined that it is in the best interests of the Company and its stockholders and Third Point has determined that it is in its best interests to come to an agreement with respect to the election of members of the Company’s Board of Directors (the “Board”) at the Company’s 2015 Annual Meeting of Stockholders (the “2015 Annual Meeting”) and certain other matters, as provided in this Agreement.

 

NOW, THEREFORE, in consideration of and reliance upon the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1. Board Representation and Board Matters.

 

(a) The Company and Third Point agree as follows:

 

(i) the Board shall take all action necessary (A) to increase the size of the Board by three directors to 13 directors, effective as of January 1, 2015, and (B) to appoint each of Robert Steven Miller and Raymond J. Milchovich (collectively, the “Designees”) and Mark Loughridge to serve as directors of the Company, effective as of January 1, 2015, until the later of (1) the 2015 Annual Meeting and (2) the date that their successors are duly elected and qualified, subject to the terms of this Agreement;

 

(ii) the Company’s slate of nominees for election as directors of the Company at the Company’s 2015 Annual Meeting shall include (A) the Designees, (B) Mark Loughridge, (C) Richard Davis, who will replace a then-current director, other than the Designees and Mark Loughridge, and (D) no more than nine other nominees identified and approved by the Governance Committee and the Board;

 

(iii) the Company will use its reasonable best efforts to cause the election of each of the Designees to the Company’s Board at the 2015 Annual Meeting (including recommending that the Company’s stockholders vote in favor of the election of the Designees (along with all other Company nominees) and otherwise supporting each of them for election in a manner no less rigorous and favorable than the manner in which the Company supports its other nominees in the aggregate);

 

 

 

 

 

 

 

 

 

(iv) the Company shall take all action necessary to decrease the size of the Board to 12 directors by the completion of the Company’s 2016 Annual Meeting of Shareholders (the “2016 Annual Meeting”);

 

(v) that no later than the date of this Agreement, Third Point will provide to the Company an executed letter in the form attached hereto as Exhibit A, which includes a consent from each Designee to be named as a nominee in the Company’s proxy statement for the 2015 Annual Meeting and to serve as a director if so elected (the “Nominee Letter”);

 

(vi) that for so long as the following Designees serve on the Board, such Designee shall be offered the opportunity to become a member of the committees of the Board as follows:

 

(1) Robert Steven Miller, Governance Committee; and

 

	
(2)  

	
Raymond J. Milchovich, Compensation and Leadership Development Committee; and

 

(vii) at all times prior to completion of the 2016 Annual Meeting and provided that at least one Designee remains a member of the Board, at least one Designee shall be offered the opportunity to be a member of each committee of the Board which may be created by the Board following execution hereof, and upon election to become such a member the Board shall effect such change in committee composition immediately (and no less than two business days following such election), assuming the absence of conflicts of interest involving such Designee relevant to such committee’s activities.

 

2. Certain Other Matters.

 

(a) Each Designee shall be entitled to resign from the Board at any time in his discretion.  For purposes of this Agreement, the “Standstill Period” shall mean the period from the date of this Agreement until 12:01 a.m. on the forty-fifth (45th) day prior to the advance notice deadline for making director nominations at the Company’s 2016 Annual Meeting.  If any Designee agrees to be included as a director nominee for election at any Stockholders Meeting other than as a director nominated by the Board for election at such Stockholders Meeting, the irrevocable resignation provision set forth in the Nominee Letter previously provided by such Designee shall become effective.

 

(b) The Company agrees that for so long as any of the Designees are on the Board, Third Point may request notice from the Company as to whether the Board intends to nominate each Designee for election at the 2016 Annual Meeting and the Company shall notify Third Point in writing of its then-current intentions with respect to the nomination of such Designee for election at the 2016 Annual Meeting (which written notice from the Company shall be delivered to Third Point by the later of forty-five (45) days prior to the advance notice deadline for making director nominations at the Company’s 2016 Annual Meeting or ten business days following the Company’s receipt of such request from Third Point).  In the event that the Company’s notifies Third Point pursuant to the immediately preceding sentence of its intent to nominate a Designee for election at the 2016 Annual Meeting, the Company shall so nominate such Designee (including recommending that the Company’s stockholders vote in favor of the election of the 

 

 

 

2

 

 

 

Designees (along with all other Company nominees) and otherwise supporting each of them for election in a manner no less rigorous and favorable than the manner in which the Company supports its other nominees in the aggregate), unless (i) the Board determines, based on the advice of outside counsel, that it is required as a result of its fiduciary duties not to make such nomination, (ii) such Designee resigns from his position as a director of the Company or (iii) Third Point or any Third Point Affiliate takes any of the actions referenced in Section 2(c)(i), (iv) and, solely as it relates to the action referenced in clause (i) or (iv), clause (iii).

 

(c) During the Standstill Period, no member of Third Point shall, directly or indirectly  (it being understood that any actions taken by Daniel S. Loeb shall be deemed to be actions taken by Third Point), and each member of Third Point shall cause each Third Point Affiliate (as defined below) it controls and Daniel S. Loeb not to, directly or indirectly:

 

(i) solicit proxies or written consents of stockholders or conduct any other type of referendum (binding or non-binding) with respect to, or from the holders of, the Voting Securities (as defined below), or become a “participant” (as such term is defined in Instruction 3 to Item 4 of Schedule 14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) in or assist any person or entity not a party to this agreement (a “Third Party”) in any “solicitation” of any proxy, consent or other authority (as such terms are defined under the Exchange Act) to vote any shares of the Voting Securities (other than such encouragement, advice or influence that is consistent with Company management’s recommendation in connection with such matter);

 

(ii) encourage, advise or influence any other person or assist any Third Party in so encouraging, assisting or influencing any person with respect to the giving or withholding of any proxy, consent or other authority to vote or in conducting any type of referendum (other than such encouragement, advice or influence that is consistent with Company management’s recommendation in connection with such matter);

 

(iii) form or join in a partnership, limited partnership, syndicate or other group, including a “group” as defined under Section 13(d) of the Exchange Act, with respect to the Voting Securities (for the avoidance of doubt, excluding any group composed solely of Third Point and their Affiliates) or otherwise support or participate in any effort by a Third Party with respect to the matters set forth in clauses (i), (vii) or (ix) herein;

 

(iv) present at any annual meeting or any special meeting of the Company’s stockholders any proposal for consideration for action by stockholders or seek the removal of any member of the Board or propose any nominee for election to the Board or seek representation on the Board;

 

(v) other than in market transactions where the identity of the purchaser is not known and in underwritten widely dispersed public offerings, sell, offer or agree to sell directly or indirectly, through swap or hedging transactions or otherwise, the securities of the Company or any rights decoupled from the underlying securities held by Third Point to any Third Party unless (A) such Third Party is a passive investor that has not filed a Schedule 13D and would not as a result of the purchase of the securities of the Company be required to file a Schedule 13D and (B) such sale, offer, or agreement to sell would not knowingly result in such Third Party, 

 

 

 

3

 

 

 

together with its Affiliates, owning, controlling or otherwise having any beneficial or other ownership interest in the aggregate of 9.9% or more of the shares of Common Stock outstanding at such time or would increase the beneficial or other ownership interest of any Third Party who, together with its Affiliates, has a beneficial or other ownership interest in the aggregate of 9.9% or more of the shares of Common Stock outstanding at such time, except in each case in a transaction approved by the Board;

 

(vi) grant any proxy, consent or other authority to vote with respect to any matters (other than to the named proxies included in the Company’s proxy card for any annual meeting or special meeting of stockholders) or deposit any Voting Securities of the Company in a voting trust or subject them to a voting agreement or other arrangement of similar effect with respect to any annual meeting except as provided in Section 2(d) below, special meeting of stockholders or action by written consent (excluding customary brokerage accounts, margin accounts, prime brokerage accounts and the like);

 

(vii) make any request for stocklist materials or other books and records of the Company under Section 220 of the Delaware General Corporation Law or otherwise;

 

(viii) make, or cause to be made, any statement or announcement that relates to and constitutes an ad hominem attack on, or relates to and otherwise disparages, the Company or its business, operations or financial performance, its officers or its directors or any person who has served as an officer or director of the Company in the past, or who serves on or following the date of this Agreement as an officer, director or agent of the Company:  (A) in any document or report filed with or furnished to the SEC or any other governmental agency, (B) in any press release or other publicly available format, or (C) to any analyst, journalist or member of the media (including without limitation, in a television, radio, internet, newspaper or magazine interview) (and the Company agrees that this Section 2(c)(viii) shall apply mutatis mutandis to the Company and its directors and officers with respect to Third Point);

 

(ix) institute, solicit or join, as a party, any litigation, arbitration or other proceeding against the Company or any of its current or former directors or officers (including derivative actions), other than (A) litigation by Third Point to enforce the provisions of this Agreement, (B) counterclaims with respect to any proceeding initiated by, or on behalf of, the Company or its Affiliates against Third Point or a Designee and (C) the exercise of statutory appraisal rights; provided that the foregoing shall not prevent any member of Third Point from responding to or complying with a validly issued legal process (and the Company agrees that this Section 2(c)(ix) shall apply mutatis mutandis to the Company and its directors and officers with respect to Third Point);

 

(x) without the prior written approval of the Board, separately or in conjunction with any other person or entity in which it is or proposes to be either a principal, partner or financing source or is acting or proposes to act as broker or agent for compensation, propose (publicly, privately or to the Company) or effect any tender offer or exchange offer, merger, acquisition, reorganization, restructuring, recapitalization or other business combination involving the Company or a material amount of the assets or businesses of the Company or actively encourage, initiate or support any other Third Party in any such activity;

 

 

 

 

4

 

 

 

 

(xi) purchase or cause to be purchased or otherwise acquire or agree to acquire Beneficial Ownership of any Voting Securities, if in any such case, immediately after the taking of such action, Third Point would, in the aggregate, collectively beneficially own, or have an economic interest in, an amount that would exceed 4.99% of the then outstanding shares of Common Stock;

 

(xii) enter into any negotiations, agreements, arrangements or understandings with any Third Party with respect to the matters set forth in this Section 2; or

 

(xiii) request, directly or indirectly, any amendment or waiver of the foregoing in a manner that would be reasonably likely to require public disclosure by Third Point or the Company.

 

As used in this Agreement, the term “Voting Securities” shall mean the Common Stock, and any other securities of the Company entitled to vote in the election of directors, or securities convertible into, or exercisable or exchangeable for Common Stock or other securities, whether or not subject to the passage of time or other contingencies.

 

As used in this Agreement, the term “Beneficial Ownership” of “Voting Securities” means ownership of:  (i) Voting Securities and (ii) rights or options to own or acquire any Voting Securities (whether such right or option is exercisable immediately or only after the passage of time or upon the satisfaction of one or more conditions (whether or not within the control of such person), compliance with regulatory requirements or otherwise).  For purposes of this Section 2, no Person shall be, or be deemed to be, the “Beneficial Owner” of, or to “beneficially own,” any securities beneficially owned by any director of the Company to the extent such securities were acquired directly from the Company by such director as or pursuant to director compensation for serving as a director of the Company.

 

(d) Until the end of the Standstill Period, Third Point together with all controlled Affiliates of the members of Third Point (such controlled Affiliates, collectively and individually, the “Third Point Affiliates”) shall cause all Voting Securities owned by them directly or indirectly, whether owned of record or Beneficially Owned, as of the record date for any annual or special meeting of stockholders or in connection with any solicitation of stockholder action by written consent (each a “Stockholders Meeting”) within the Standstill Period, in each case that are entitled to vote at any such Stockholders Meeting, to be present for quorum purposes and to be voted, at all such Stockholders Meetings or at any adjournments or postponements thereof, (i) for all directors nominated by the Board for election at such Stockholders Meeting and (ii) in accordance with the recommendation of the Board on any precatory or non-binding proposals and any non-transaction-related proposals that come before any Stockholder Meeting.

 

3. Public Announcements.  Promptly following the execution of this Agreement, (a) the Company and Third Point shall announce this Agreement by means of a jointly issued press release in the form attached hereto as Exhibit B (the “Joint Press Release”) and (b) the Company shall announce the agreement to appoint four new directors to the Board by means of a press release in the form attached hereto as Exhibit C (the “Dow Release”).  Neither the Company (and the Company shall cause each of its Affiliates, directors and officers not to) nor Third Point (it 

 

 

 

5

 

 

 

being understood that any actions taken by Daniel S. Loeb shall be deemed to be actions taken by Third Point) or any Third Point Affiliate shall make or cause to be made any public announcement or statement with respect to the subject of this Agreement that is contrary to the statements made in the Press Release and the Dow Release, except as required by law or the rules of any stock exchange or with the prior written consent of the other party.

 

4. Representations and Warranties of All Parties.  Each of the parties represents and warrants to the other party that:  (a) such party has all requisite power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (b) this Agreement has been duly and validly authorized, executed and delivered by it and is a valid and binding obligation of such party, enforceable against such party in accordance with its terms; and (c) this Agreement will not result in a violation of any terms or conditions of any agreements to which such person is a party or by which such party may otherwise be bound or of any law, rule, license, regulation, judgment, order or decree governing or affecting such party.

 

5. Representations and Warranties of Third Point.  Each member of Third Point jointly represents and warrants that, as of the date of this Agreement, (a) Third Point, together with all of the Third Point Affiliates, collectively Beneficially Own, an aggregate of 27,500,000 shares of Common Stock, (b) except for such ownership, no member of Third Point, individually or in the aggregate with all other members of Third Point and the Third Point Affiliates, has any other Beneficial Ownership of any Voting Securities and (c) Third Point, collectively with the Third Point Affiliates, have a Net Long Position of 18,250,000 shares of Common Stock.  The term “Net Long Position” shall mean:  such shares of Common Stock Beneficially Owned, directly or indirectly, that constitute such person’s net long position as defined in Rule 14e-4 under the Exchange Act mutatis mutandis, provided that “Net Long Position” shall not include any shares as to which such person does not have the right to vote or direct the vote; and the terms “person” or “persons” shall mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability or unlimited liability company, joint venture, estate, trust, association, organization or other entity of any kind or nature.

 

6. Miscellaneous.  The parties hereto recognize and agree that if for any reason any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached, immediate and irreparable harm or injury would be caused for which money damages would not be an adequate remedy.  Accordingly, each party agrees that in addition to other remedies the other party shall be entitled to at law or equity, the other party shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement exclusively in the Court of Chancery or other federal or state courts of the State of Delaware.  Furthermore, each of the parties hereto (a) consents to submit itself to the personal jurisdiction of the Court of Chancery or other federal or state courts of the State of Delaware in the event any dispute arises out of this Agreement or the transactions contemplated by this Agreement, (b) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, (c) agrees that it shall not bring any action relating to this Agreement or the transactions contemplated by this Agreement in any court other than the Court of Chancery or other federal or state courts of the State of Delaware, and each of the parties irrevocably waives the right to trial by jury and (d) irrevocably consents to service of process by a reputable overnight mail delivery service, signature requested, to the address of such party’s principal 

 

 

 

6

 

 

 

place of business or as otherwise provided by applicable law.  THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS, INCLUDING VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES OF SUCH STATE.

 

7. No Waiver.  Any waiver by any party of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement.  The failure of a party to insist upon strict adherence to any term of this Agreement on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

 

8. Entire Agreement.  This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and may be amended only by an agreement in writing executed by the parties hereto.

 

9. Notices.  All notices, consents, requests, instructions, approvals and other communications provided for herein and all legal process in regard hereto shall be in writing and shall be deemed validly given, made or served, if (a) given by email, when such email is sent to the email address set forth below during normal business hours and the appropriate confirmation is received or (b) if given by any other means, when actually received during normal business hours at the address specified in this subsection:

 

	  	
if to the Company:

	
The Dow Chemical Company

	  	  	
2030 Dow Center

	  	  	
Midland, Michigan  48674

	  	  	
Attention:

	
Charles J. Kalil, General Counsel,

	  	  	  	
Corporate Secretary, Executive Vice President

	  	  	
Email:

	
CJKalil@dow.com

	  	  	  	  
	  	  	  	
and

	  	  	  	  
	  	  	
Attention:

	
Howard I. Ungerleider, Chief Financial Officer, Executive Vice President

	  	  	
Email:

	
HIUngerleider@dow.com 

	  	  	  
	  	
With a copy to (which shall not constitute notice):

	  	  	  
	  	  	
Weil, Gotshal & Manges LLP

	  	  	
767 Fifth Avenue

	  	  	
New York, New York  10153

	  	  	
Attention:

	
Michael J. Aiello

	  	  	
Email:

	
michael.aiello@weil.com

	  	  	  	  

 

 

 

 

7

 

 

 

 

	  	
if to Third Point:

	
c/o Third Point LLC

	  	  	
390 Park Avenue, 18th Floor

	  	  	
New York, New York 10022

	  	  	
Attention:

	
Josh Targoff,

	  	  	  	
Chief Operating Officer and

	  	  	  	
General Counsel

	  	  	
Email:

	
jtargoff@thirdpoint.com

	  	  	  	  
	  	  	  
	  	
With a copy to (which shall not constitute notice):

	  
	  	  	  	  
	  	  	
Willkie Farr & Gallagher LLP

	  	  	
787 Seventh Avenue, 34th Floor

	  	  	
New York, New York  10019

	  	  	
Attention:

	
Steven J. Gartner

	  	  	  	
Morgan D. Elwyn

	  	  	
Email:

	
sgartner@willkie.com

	  	  	  	
melwyn@willkie.com

 

10. Severability.  If at any time subsequent to the date hereof, any provision of this Agreement shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect, but the illegality or unenforceability of such provision shall have no effect upon the legality or enforceability of any other provision of this Agreement.

 

11. Counterparts.  This Agreement may be executed in two or more counterparts which together shall constitute a single agreement.

 

12. Successors and Assigns.  This Agreement shall not be assignable by any of the parties to this Agreement.  This Agreement, however, shall be binding on successors of the parties hereto.

 

13. No Third Party Beneficiaries.  This Agreement is solely for the benefit of the parties hereto and is not enforceable by any other persons.

 

14. Fees and Expenses.  Each party to this Agreement shall bear and pay all fees, costs and expenses that have been incurred or that are incurred in the future by such party in connection with, relating to or resulting from such party’s efforts and actions, and any preparations therefor, prior to the execution and delivery of this Agreement, including, without limitation, communications between Third Point, on the one hand, and the Board and the Company’s management, on the other hand, Third Point’s Schedule 14A and Hart-Scott-Rodino filings, and such party’s preparation of soliciting materials and this Agreement.

 

15. Interpretation and Construction.  Each of the parties hereto acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement, and that it has executed the same with the advice of said independent counsel.  Each party and its counsel cooperated and participated in the drafting and 

 

 

 

8

 

 

 

preparation of this Agreement and the documents referred to herein, and any and all drafts relating thereto exchanged among the parties shall be deemed the work product of all of the parties and may not be construed against any party by reason of its drafting or preparation.  Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any party that drafted or prepared it is of no application and is hereby expressly waived by each of the parties hereto, and any controversy over interpretations of this Agreement shall be decided without regards to events of drafting or preparation.  The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  The term “including” shall be deemed to mean “including without limitation” in all instances.

 

16. Liability Several and Not Joint.  Notwithstanding anything contained herein to the contrary, the obligations of the members of Third Point hereunder are several and not joint or collective.

 

[Signature Pages Follow]

 

 

 

 

 

 

 

 

  

9

  

IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement, or caused the same to be executed by its duly authorized representative as of the date first above written.

 

	  	
THE DOW CHEMICAL COMPANY

	  	  	  
	  	  	  
	  	
By:

	
/s/ Charles J. Kalil

	  	  	
Name:

	
Charles J. Kalil

	  	  	
Title:

	
General Counsel, Corporate Secretary and Executive Vice President

	  	  
	  	  
	  	
THIRD POINT LLC

	  	  	  
	  	  	  
	  	
By:

	
/s/ Josh Targoff

	  	  	
Name:

	
Josh Targoff

	  	  	
Title:

	
Chief Operating Officer and General Counsel

	  	  	  
	  	  
	  	
THIRD POINT PARTNERS L.P.

	  	  	  
	  	  	  
	  	
By:

	
Third Point LLC, its investment manager

	  	  	  
	  	
By:

	
/s/ Josh Targoff

	  	  	
Name:

	
Josh Targoff

	  	  	
Title:

	
Chief Operating Officer and General Counsel

	  	  
	  	  
	  	
THIRD POINT PARTNERS QUALIFIED L.P.

	  	  	  
	  	  	  
	  	
By:

	
Third Point LLC, its investment manager

	  	  	  
	  	
By:

	
/s/ Josh Targoff

	  	  	
Name:

	
Josh Targoff

	  	  	
Title:

	
Chief Operating Officer and General Counsel

	  	  
	  	  
	  	
THIRD POINT OFFSHORE MASTER FUND L.P.

	  	  	  
	  	  	  
	  	
By:

	
Third Point LLC, its investment manager

	  	  	  
	  	
By:

	
/s/ Josh Targoff

	  	  	
Name:

	
Josh Targoff

	  	  	
Title:

	
Chief Operating Officer and General Counsel

	  	  
	  	  

 

 

 

 

 

 

 

 

 

	  	
THIRD POINT ULTRA MASTER FUND L.P.

	  	  	  
	  	  	  
	  	
By:

	
Third Point LLC, its investment manager

	  	  	  
	  	
By:

	
/s/ Josh Targoff

	  	  	
Name:

	
Josh Targoff

	  	  	
Title:

	
Chief Operating Officer and General Counsel

	  	  
	  	  
	  	
THIRD POINT REINSURANCE CO. LTD.

	  	  	  
	  	  	  
	  	
By:

	
Third Point LLC, its investment manager

	  	  	  
	  	
By:

	
/s/ Josh Targoff

	  	  	
Name:

	
Josh Targoff

	  	  	
Title:

	
Chief Operating Officer and General Counsel

 

SIGNATURE PAGE TO SUPPORT AGREEMENT

  

  

  

EXHIBIT A

 

FORM OF NOMINEE LETTER

 

November 20, 2014

 

Attention:  Board of Directors

 

The Dow Chemical Company

 

2030 Dow Center

 

Midland, MI 48674

 

Re:           Consent and Resignation

 

Ladies and Gentlemen:

 

This letter is delivered pursuant to Sections 1(a)(v) and 2(a) of the Support Agreement, dated as of November 20, 2014 (the “Agreement”), by and among The Dow Chemical Company and Third Point (as defined therein).  Capitalized terms used herein but not defined shall have the meaning set forth in the Agreement.

 

In connection with the Agreement, I hereby consent to (i) serve as a director of the Company effective January 1, 2015, (ii) be named as a nominee for the position of director of the Company in the Company’s proxy statement for the 2015 Annual Meeting and (iii) serve as a director if I am so elected at the 2015 Annual Meeting.   I also agree that, after the date hereof, I will provide to the Company, as requested by the Company from time to time, such information as the Company is entitled to reasonably receive from other members of the Board and as is required to be disclosed in proxy statements under applicable law.

 

Consistent with existing Company policies and the treatment of all other directors of the Company and assuming the absence of conflicts of interest involving me relevant to such committee’s activities, at all times that I am a director of the Company, regardless of whether a member of such committee, I shall be entitled to attend any meeting of any committee of the Board and participate as a non-voting member (if not a committee member), including the right to receive any materials distributed to any committee members.

 

At all times while serving as a member of the Board, I agree to comply with all policies, procedures, processes, codes, rules, standards and guidelines applicable to Board members, including the Company’s code of business conduct and ethics, securities trading policies, anti-hedging policies, Regulation FD-related policies, director confidentiality policies, related party transaction policy and Corporate Governance Guidelines, in each case that have been identified to me, and preserve the confidentiality of Company business and information, including discussions or matters considered in meetings of the Board or Board committees.

 

Following January 1, 2015, effective only upon, and subject to, such time as I agree to be included as a director nominee for election at any Stockholders Meeting, other than as a director nominated by the Board for election at such Stockholders Meeting, I hereby resign from my position as a director of the Company and from any and all committees of the Board on which I serve.

 

 

 

 

 

A-1

 

 

 

This resignation may not be withdrawn by me at any time during which it is effective.

 

Sincerely,

 

 

 

 

                  

Name:

 

  

A-2

  

EXHIBIT B

 

JOINT PRESS RELEASE

 

The Dow Chemical Company and Third Point Reach Agreement

 

MIDLAND, Michigan and NEW YORK, NY - November 21, 2014

 

(BUSINESS WIRE) – The Dow Chemical Company (NYSE: DOW) and Third Point LLC (NYSE: TPRE) today announced a comprehensive agreement to add four new, independent directors to Dow’s Board.  [link to Board announcement]  Mark Loughridge, Ray Milchovich and R. “Steve” Miller will join the Board on January 1, 2015. Richard Davis will join in May 2015 following the 2015 Annual Meeting of Shareholders.

 

The agreement also provides that:

	
●  

	
The four independent directors will be included in Dow’s nominees for election at the 2015 Annual Meeting.

	
●  

	
Third Point will vote in favor of the company’s nominees at the 2015 Annual Meeting.

	
●  

	
Thirteen directors will stand for election at the 2015 Annual Meeting.  However, Dow has agreed to reduce the size of its Board to twelve members before its Annual Meeting in 2016.

	
●  

	
Third Point has agreed to a one year customary standstill and voting agreement.

 

Dow and Third Point will be making no further public comment on the matter and both are pleased to have resolved the matter amicably and to have arrived at an agreeable path forward.

 

The complete agreement between Dow and Third Point will be included as an exhibit to a Current Report on Form 8-K, which will be filed with the Securities and Exchange Commission.

 

###

 

Dow Contact:

Rebecca Bentley

+1 989 638 8568

rmbentley@dow.com

 

 

About Dow

Dow (NYSE: DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company is driving innovations that extract value from the intersection of chemical, physical and biological sciences to help address many of the world's most challenging problems such as the need for clean water, clean energy generation and conservation, and increasing agricultural productivity. Dow's integrated, market-driven, industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 180 countries and in high growth sectors such as packaging, electronics, water, coatings and agriculture. In 2013, Dow had annual sales of more than $57 billion and employed approximately 53,000 people worldwide. The Company's more than 6,000 products are manufactured at 201 sites in 36 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.

 

 

 

 

 

B-1

 

About Third Point LLC:  Third Point LLC is an SEC-registered investment adviser headquartered in New York, managing over $17 billion in assets.  Founded in 1995, Third Point follows an event-driven approach to investing globally.

 

Contact:

Elissa Doyle

Managing Director of Communications

edoyle@thirdpoint.com

(212) 715 – 4907

 

 

  

B-2

  

EXHIBIT C

 

COMPANY RELEASE

 

Dow to Add New Independent Directors to Its Board

 

MIDLAND, Michigan - November 21, 2014

 

(BUSINESS WIRE) – The Dow Chemical Company (NYSE: DOW) today announced it will add four new independent directors to its Board:

 

	
●  

	
Mr. Richard Davis, Chairman, President and CEO of U.S. Bancorp

	
●  

	
Mr. Mark Loughridge, former Chief Financial Officer of IBM

	
●  

	
Mr. Raymond J. Milchovich, Lead Director of Nucor and former Chairman and CEO of Foster Wheeler AG

	
●  

	
Mr. Robert S. (Steve) Miller, non-executive Chairman of the Board of American International Group  (AIG); Former Chief Executive Officer, Hawker Beechcraft, Inc.; Former Executive Chairman, Delphi

 

All four individuals will be included in Dow’s nominations for election at the 2015 Annual Meeting of Shareholders.

 

Loughridge, Milchovich and Miller will join the Board effective January 1, 2015, and Davis will join the Board  in May 2015, following Dow’s 2015 Annual Meeting.

 

As a result of today’s announcement, Dow’s Board will increase from 10 to 13 members, as of January 1, 2015.

 

***

 

Mr. Mark Loughridge

Former SVP and CFO, IBM

 

Mr. Mark Loughridge was named IBM's Senior Vice President and Chief Financial Officer in May 2004. He was given the additional responsibility for Enterprise Transformation in July 2010 to lead IBM’s ongoing integration and transformation as well as continue in his role as CFO. Loughridge retired from this position in December 2013 after 36 years with IBM. He joined the company in 1977, where he started as a development engineer in the Office Products Division in Lexington, KY.

 

He holds a Master of Business Administration degree from the University of Chicago Booth School of Business, a bachelor's degree in mechanical engineering from Stanford University and completed studies at Ecole Nationale Superieure de Mecaniquein Nantes, France.

 

In 2010, Loughridge was rated by the buy-side analysts as the top rated CFO in the IT Hardware Sector by Institutional Investor. In 2012, he was ranked the #1 CFO in America by the Wall Street Journal, and named the "Executive Dream Team" CFO by Fortune Magazine, and the "Best CFO" in the IT hardware category by Institutional Investor.

 

 

 

C-1

 

 

 

Loughridge serves on the Board of Directors of The Vanguard Group. He is also a member of the Council on Chicago Booth.

 

Raymond J. Milchovich

Lead Director, Nucor Corp; Former Chief Executive Officer, Chairman and President, Foster Wheeler AG

 

Mr. Milchovich has served as the Lead Director of Nucor since September 2013. Mr. Milchovich served as non-executive Chairman of the board of directors of, and a consultant to, Foster Wheeler AG, a Switzerland-based global engineering and construction company serving primarily the energy infrastructure markets, from 2010 until his retirement in 2011. Previously, Mr. Milchovich served as the Chairman and Chief Executive Officer of Foster Wheeler from 2001 to 2010 and as President from 2001 to 2007. Prior to that, Mr. Milchovich served as Chairman, President and Chief Executive Officer of Kaiser Aluminum & Chemical Corporation, a producer and marketer of alumina, aluminum and aluminum fabricated products, from 1999 to 2001, and as President and Chief Operating Officer from 1997 to 1999.

 

Mr. Milchovich began his career in the steel industry, holding a variety of operating management positions for Wisconsin Steel Corporation and Wheeling-Pittsburgh Steel Corporation. From 2002 to 2007, Mr. Milchovich served as a director of Nucor and voluntarily resigned from such position to devote more time to his position as Chief Executive Officer of Foster Wheeler. Mr. Milchovich was also a director of Delphi Corporation from 2005 through 2009. In serving as Chief Executive Officer of two different companies for more than ten years, Mr. Milchovich developed strong leadership and strategic management skills. Mr. Milchovich has more than 30 years of experience in the metals industry.

 

At Nucor, Mr. Milchovich is the Chairman of the Governance & Nominating Committee and a member of the Audit Committee and the Compensation & Executive Development Committee.

 

Mr. Milchovich holds a Bachelor of Science from the California University of Pennsylvania and Advanced Management Program from Harvard University.

 

Robert S. Miller

Non-Executive Chairman of the Board, AIG, Inc.; Former Chief Executive Officer, Hawker Beechcraft, Inc. Former Executive Chairman, Delphi

 

Mr. Miller is Chairman of the Board of American International Group (AIG), and Chairman of MidOcean Partners, a private equity firm specializing in leveraged buyouts, recapitalizations and growth capital investments in middle-market companies.

 

Mr. Miller served as Chief Executive Officer of Hawker Beechcraft, an aircraft manufacturing company, from February 2012 to February 2013. He served as Executive Chairman of Delphi Corporation from January 2007 until November 2009 and as Chairman and Chief Executive Officer from July 2005 until January 2007. From January 2004 to June 2005, Mr. Miller was non-executive Chairman of Federal Mogul Corporation. From September 2001 until December 2003, Mr. Miller was Chairman and Chief Executive Officer of Bethlehem Steel Corporation. Prior to joining Bethlehem Steel, Mr. Miller served as Chairman and Chief Executive Officer on an interim basis upon the departure of Federal Mogul’s top executive in September 2000.

 

 

 

 

C-2

 

 

 

Mr. Miller began his career in 1968 at Ford Motor Company and after more than a decade there joined Chrysler Corporation where he worked for 13 years, eventually serving as Vice Chairman. While at Chrysler, corporate staffs, financial services, international automotive operations, and non-automotive operations all reported to him. Mr. Miller led the financial negotiations with 400 bank lenders and the Federal government, which resulted in the Loan Guarantee Act bailout package in 1980 that saved Chrysler.

 

Mr. Miller currently serves as a Director of Symantec (NASDAQ: SYMC) and WL Ross Holding Corp. (NASDAQ: WLRH).  Mr. Miller has previously served as a director of a variety of companies, including United Airlines Corporation, Reynolds American, Inc., U.S. Bancorp, and Waste Management, Inc.

 

Mr. Miller earned a degree in economics from Stanford University, a law degree from Harvard Law School and a master’s of business administration, majoring in finance from Stanford Business School.

 

 

Mr. Richard Davis

Chairman, President and CEO, U.S Bancorp

 

Mr. Richard Davis is Chairman, President and Chief Executive Officer of Minneapolis-based U.S. Bancorp, the fifth largest bank in the United States. Mr. Davis has served as Chairman of U.S. Bancorp since December 2007, Chief Executive Officer since December 2006, and President since October 2004. He also served as Chief Operating Officer from October 2004 until December 2006.

 

Mr. Davis was also an Executive Vice President at Bank of America and Security Pacific Bank prior to joining Star Banc Corporation, which was one of U S Bancorp's legacy companies.

 

Mr. Davis brings extensive leadership skills and financial services industry experience and knowledge to the Board. During his career, he has served as Chairman of the Financial Services Roundtable, Chairman of the Consumer Bankers Association, Chairman of The Clearing House, and representative for the Ninth District of the Federal Reserve, where he was President of its Financial Advisory Committee. Additionally, his service as lead director of the Xcel Energy board of directors broadens his experience of overseeing management in an industry subject to extensive regulation.

 

Mr. Davis also currently serves on the board of directors of the National American Red Cross, The Itasca Project, the Minnesota Business Partnership, The Minnesota Institute of Arts, the Twin Cities YMCA, and the University of San Diego. He was also one of three executive co-Chairs that made the presentation to the NFL to secure the Super Bowl coming to Minneapolis in 2018. He continues to serve on the 2018 Super Bowl Host Committee.

 

***

 

Dow Contact:

Rebecca Bentley

+1 989 638 8568

rmbentley@dow.com

 

 

C-3

 

 

About Dow

Dow (NYSE: DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company is driving innovations that extract value from the intersection of chemical, physical and biological sciences to help address many of the world's most challenging problems such as the need for clean water, clean energy generation and conservation, and increasing agricultural productivity. Dow's integrated, market-driven, industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 180 countries and in high growth sectors such as packaging, electronics, water, coatings and agriculture. In 2013, Dow had annual sales of more than $57 billion and employed approximately 53,000 people worldwide. The Company's more than 6,000 products are manufactured at 201 sites in 36 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.

 

 

 

 

 

 

 

 

C-4Exhibit10.1

 

Confidential Treatment Requested as to certain information contained in this Exhibit and filed separately with the Securities and Exchange Commission. 

SECOND AMENDMENT TO SIXTH AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 

SECOND AMENDMENT TO SIXTH AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Second Amendment”) dated as of October 29, 2014 by and among DESTINATION XL GROUP, INC. (f/k/a Casual Male Retail Group, Inc.), a Delaware corporation, as a Borrower and as Borrowers’ Representative for the other Borrowers now or hereafter party to the Loan Agreement, CMRG APPAREL, LLC, a Delaware limited liability company, as a Borrower, the Guarantors party hereto, the Revolving Credit Lenders party hereto, and BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) and as Collateral Agent (in such capacity, the “Collateral Agent”).

W I T N E S S E T H:

WHEREAS, the Borrowers’ Representative, the Borrowers, certain of the Revolving Credit Lenders, the Administrative Agent and the Collateral Agent, among others, have entered into a certain Sixth Amended and Restated Loan and Security Agreement, dated as of November 10, 2010, as amended by a First Amendment To Sixth Amended And Restated Loan and Security Agreement, First Amendment To Amended And Restated Guaranty, First Amendment To Amended and Restated Security Agreement, and Termination Agreement dated as of June 26, 2013 (as further amended, restated, supplemented or otherwise modified from time to time, in accordance with the terms thereof and the Intercreditor Agreement, the “Loan Agreement”); and

WHEREAS, the parties to the Loan Agreement desire to modify certain provisions of the Loan Agreement as provided herein;

NOW THEREFORE, in consideration of the mutual promises and agreements herein contained, the parties hereto hereby agree as follows:

	
1.
	
Incorporation of Terms and Conditions of Loan Agreement.   Except as amended hereby, all of the terms and conditions of the Loan Agreement (including, without limitation, all definitions set forth therein) are specifically incorporated herein by reference.  Except as amended hereby, all capitalized terms used (including in the preamble hereto) but not otherwise defined herein shall have the same meaning as in the Loan Agreement, as applicable.

	
2.
	
Representations and Warranties.  Each Loan Party hereby represents and warrants that, as of the Second Amendment Effective Date, (i) no Default or Event of Default exists under the Loan Agreement or under any other Loan Document and (ii) all representations and warranties contained in the Loan Agreement and in the other Loan Documents, each as amended hereby, are true and correct in all material respects; provided that, to the extent that such representations and warranties specifically refer to an earlier date, they are true and correct in all material respects as of such earlier date; provided, further that, any representation and warranty that is qualified as to “materiality,” “material adverse effect” or similar language is true and correct (after giving effect to any qualification therein) in all respects.

	
3.
	
Ratification of Loan Documents, Guaranties and Security Interests; Termination of Inventory Purchase Agreement.  The Loan Agreement, as hereby amended, and all other Loan Documents, are hereby ratified, confirmed and re-affirmed in all respects and shall continue in full force and effect.  Each Guarantor hereby acknowledges, confirms and agrees that its Liabilities as a Guarantor under, and as defined in, the applicable Guarantor Agreements to which it is a party include, without limitation, all Liabilities of the Loan Parties at any time and from time to time outstanding under the Loan Agreement 

 

 

		
and the other Loan Documents, each as amended hereby.  The Loan Parties hereby acknowledge, confirm and agree that the Loan Documents and any and all Collateral pledged to the Collateral Agent, for the benefit of the Secured Parties, pursuant to the Loan Documents as amended hereby shall continue to secure all applicable Liabilities of the Loan Parties at any time and from time to time outstanding under the Loan Agreement (as amended hereby) and the other Loan Documents.  Notwithstanding anything herein to the contrary, the parties hereto hereby agree that from and after the Second Amendment Effective Date, the Inventory Purchase Agreement shall be terminated and be of no further force or effect.

	
4.
	
Amendments to Loan Agreement.  Subject to the satisfaction or waiver of the conditions precedent set forth in Section 5 hereof:

	
a.
	
Article 1 of the Loan Agreement is hereby amended as follows:

	
i.
	
by amending the definition of “Accelerated Borrowing Base Delivery Event” by deleting each reference to “fifteen percent (15%) of the Loan Cap” in such definition and substituting the phrase “twenty percent (20%) of the Loan Cap (calculated without giving effect to the Term Loan Reserve)” in its stead.

	
ii.
	
by amending the definition of “Availability Reserves” by adding the following new clause (vi):

(vi)the Term Loan Reserve.

	
iii.
	
by amending the definition of “Cash Dominion Event” by deleting each reference to “twelve and one-half percent (12.5%) of the Loan Cap” in such definition and substituting the phrase “twelve and one-half percent (12.5%) of the Loan Cap (calculated without giving effect to the Term Loan Reserve)” in its stead.

	
iv.
	
by amending the definition of “Covenant Compliance Event” by deleting each reference to “ten percent (10%) of the Loan Cap” in such definition and substituting the phrase “ten percent (10%) of the Loan Cap (calculated without giving effect to the Term Loan Reserve)” in its stead.

	
v.
	
by amending the definition of “Credit Card Receivable” by deleting the words “Each Account” at the beginning of such definition and substituting the words “Each “payment intangible” (as defined in the UCC)” in their stead.

	
vi.
	
By amending the definition of “Eligible Credit Card Receivables” as follows:

	
a)
	
by deleting the following language:

Without limiting the foregoing, to qualify as an Eligible Credit Card Receivable, an Account shall indicate no Person other than a Loan Party as payee or remittance party.  In determining the amount to be so included, the face amount of an Account shall be reduced by, without duplication, to the extent not reflected in such face amount, (i) the amount of all accrued and actual discounts, claims, credits or credits pending, promotional program allowances, price adjustments, finance charges or other allowances (including any amount that a Loan Party may be obligated to rebate to a customer, a credit card payment processor, or credit card issuer pursuant to the terms of any agreement or understanding (written or oral)) and (ii) the aggregate amount of all cash received in respect of such Account but not yet applied by the Loan Parties to reduce the amount of such Credit Card Receivable.

-2-

 

and substituting the following in its stead:

Without limiting the foregoing, to qualify as an Eligible Credit Card Receivable, a Credit Card Receivable shall indicate no Person other than a Loan Party as payee or remittance party.  In determining the amount to be so included, the face amount of a Credit Card Receivable shall be reduced by, without duplication, to the extent not reflected in such face amount, (i) the amount of all accrued and actual discounts, claims, credits or credits pending, promotional program allowances, price adjustments, finance charges or other allowances (including any amount that a Loan Party may be obligated to rebate to a customer, a credit card payment processor, or credit card issuer pursuant to the terms of any agreement or understanding (written or oral)) and (ii) the aggregate amount of all cash received in respect of such Credit Card Receivable but not yet applied by the Loan Parties to reduce the amount of such Credit Card Receivable.

	
b)
	
by deleting clause (a) of such definition in its entirety and substituting the following in its stead:

(a)Credit Card Receivables which do not constitute a “payment intangible” (as defined in the UCC);

	
c)
	
by adding the following language in the parenthetical at the end of clause (c) of such definition:

and Encumbrances granted to the Term Agent to secure obligations under the Term Loan Agreement.

	
d)
	
by deleting clause (e) of such definition in its entirety and substituting the following in its stead:

(e)Credit Card Receivables as to which the processor has the right under certain circumstances to require a Loan Party to repurchase the Credit Card Receivables from such credit card processor;

	
vii.
	
by deleting the definition of “Executive Order” in its entirety.

	
viii.
	
by deleting the definition of “Fee Letter” in its entirety and substituting the following in its stead:

“Fee Letter” means, initially, the letter dated as of September 28, 2010 between Borrowers’ Representative and the Administrative Agent, as such letter may from time to time be amended, restated, supplemented or otherwise modified and, from and after the Second Amendment Effective Date, the letter dated October 29, 2014 among the Borrowers’ Representative, Bank of America, N.A., and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as such letter may from time to time be amended, restated, supplemented or otherwise modified.

	
ix.
	
by deleting the definition of “Foreign Assets Control Regulations” in its entirety.

	
x.
	
by deleting the definition of “Inventory Purchase Agreement” in its entirety.

-3-

 

	
xi.
	
by deleting the definitions of “Libor Offer Rate” in its entirety and substituting the following in its stead:

“Libor Offer Rate” means (a) for any Interest Period with respect to a Libor Loan, the rate per annum equal to the London interbank offered rate administered by ICE Benchmark Administration Limited (“ICE LIBOR”), as published by Reuters (or other commercially available source providing quotations of ICE LIBOR as designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period; provided that if such ICE LIBOR shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.  If such rate is not available at such time for any reason, then the “Libor Offer Rate” for such Interest Period shall be the rate per annum determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Libor Loan being made, continued or converted by Bank of America and with a term equivalent to such Interest Period would be offered by Bank of America’s London Branch to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period; and

(b)for any interest calculation with respect to a Base Margin Loan on any date, the rate per annum equal to (i) ICE LIBOR, at approximately 11:00 a.m., London time determined two London Banking Days prior to such date for Dollar deposits being delivered in the London interbank market for a term of one month commencing that day or (ii) if such published rate is not available at such time for any reason, the rate per annum determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the date of determination in same day funds in the approximate amount of the Base Margin Loan being made or maintained and with a term equal to one month would be offered by Bank of America’s London Branch to major banks in the London interbank Eurodollar market at their request at the date and time of determination.

	
xii.
	
by amending the definition of “Loan Documents” by adding the phrase “the Intercreditor Agreement,” in the first line thereof immediately after the phrase “This Agreement,”.

	
xiii.
	
by deleting the definition of “Maturity Date” in its entirety and substituting the following in its stead:

“Maturity Date”: October 29, 2019.

	
xiv.
	
by amending the definition of “Payment Conditions” by deleting the reference to “twenty five percent (25%) of the Loan Cap” in clause (c) of such definition and substituting the phrase “twenty five percent (25%) of the Loan Cap (calculated without giving effect to the Term Loan Reserve)” in its stead.

	
xv.
	
by adding the following new clause (d) to the definition of “Permitted Encumbrances”:

(d)Encumbrances on the Collateral and on the Equipment of the Loan Parties in favor of the Term Agent to secure obligations under the Term Loan Agreement, which Encumbrances, to the extent held by both the Term Lender and the Collateral Agent, shall be subject to the terms of the Intercreditor Agreement.

-4-

 

	
xvi.
	
by adding the following new clause (i) to the definition of “Permitted Indebtedness”:

(i)Indebtedness under the Term Loan Agreement in a principal amount not to exceed $15,000,000 minus any principal repayments made on account thereof, plus “Protective Advances” (as defined in the Term Loan Agreement) up to the amount permitted under the Intercreditor Agreement;

	
xvii.
	
by deleting the last sentence of the definition of “Revolving Credit Commitments” in its entirety and substituting the following in its stead:

The aggregate Revolving Credit Dollar Commitments as of the Second Amendment Effective Date is $125,000,000.

	
xviii.
	
by deleting the definition of “Trading with the Enemy Act” in its entirety.

	
xix.
	
by adding the following new definitions in appropriate alphabetical order:

“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to any Loan Party or any of its Subsidiaries from time to time concerning or relating to bribery or corruption. 

“Collateral Access Agreement”: An agreement reasonably satisfactory in form and substance to the Administrative Agent executed by (a) a bailee or other Person in possession of Collateral, and (b) any landlord of real estate leased by any Loan Party, pursuant to which such Person (i) acknowledges the Agent’s Collateral Interest in the Collateral, (ii) releases or subordinates such Person’s Encumbrances in the Collateral held by such Person or located on such real estate, (iii) provides the Administrative Agent with access to the Collateral held by such bailee or other Person or located in or on such real estate, (iv) as to any landlord, provides the Administrative Agent with a reasonable time to sell and dispose of the Collateral from such real estate, and (v) makes such other agreements with the Administrative Agent as the Administrative Agent may reasonably require. 

“Customs Broker/Carrier Agreement”: An agreement in form and substance satisfactory to the Administrative Agent among a Borrower, a customs broker, freight forwarder, consolidator or carrier, and the Administrative Agent, in which the customs broker, freight forwarder, consolidator or carrier acknowledges that it has control over and holds the documents evidencing ownership of the subject Inventory for the benefit of the Agent and agrees, upon notice from the Administrative Agent, to hold and dispose of the subject Inventory solely as directed by the Administrative Agent.

“Intercreditor Agreement” means the Intercreditor Agreement dated as of October 29, 2014, by and between the Administrative Agent, and the Term Agent, as amended, restated, amended and restated, modified, replaced, or supplemented  from time to time.

“Sanctioned Country” means, at any time, a country or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, Cuba, Iran, North Korea, Sudan and Syria).

-5-

 

“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b).

“Sanctions” economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State. 

“Second Amendment Effective Date”: October 29, 2014.

“Term Agent” means Wells Fargo Bank, National Association, in its capacity as agent under the Term Loan Agreement.

“Term Facility Borrowing Base” means the “Borrowing Base” (as defined in the Term Loan Agreement and as reflected on the Borrowing Base Certificates delivered by the Borrowers’ Representative to the Administrative Agent from time to time as required in this Agreement; provided that if the Borrower’s Representative shall fail to deliver such Borrowing Base Certificate when required hereunder, the Term Agent may deliver the most recent Borrowing Base Certificate it has received from the Borrowers under the Term Loan Agreement or, in good faith, calculate the Term Facility Borrowing Base and certify to the Administrative Agent in writing of its determination of the Term Loan Reserve, if any. The Administrative Agent shall be entitled to conclusively rely on any such Borrowing Base Certificate delivered by the Term Agent or certification by the Term Agent and establish a Term Loan Reserve in the amount so certified, without further inquiry and without any independent investigation, and shall have no liability to any of the Loan Parties with respect thereto).

“Term Loan” means the term loan in the original principal amount of $15,000,000 made to the Borrowers under the Term Loan Agreement, plus Protective Advances (as defined in the Term Loan Agreement) up to the amount permitted under the Intercreditor Agreement.

“Term Loan Agreement” means that certain Term Loan Agreement dated as of October 29, 2014 among the Borrowers, the lenders party thereto and the Term Agent, as amended, restated, amended and restated, modified, replaced, or supplemented from time to time in accordance with the terms thereof and the Intercreditor Agreement.

“Term Loan Reserve” means as of any date of calculation of the Borrowing Base, an Availability Reserve in an amount equal to the excess, if any, of the aggregate principal outstanding amount of the Term Loan over the then current amount of the Term Facility Borrowing Base.

“Term Priority Collateral” means all Equipment of the Loan Parties (other than Equipment leased by the Administrative Agent or any of its Affiliates).

-6-

 

	
b.
	
Section 2.13 is hereby deleted in its entirety and the following substituted in its stead:

2.13Arrangement Fee.  In consideration of the Arranger having arranged the Second Amendment to the Revolving Credit Facility for the Borrowers, as of the Second Amendment Effective Date there has been earned by the Arranger and the Borrowers shall pay the “Arrangement Fee” to the Arranger in the amount and payable as provided in the Fee Letter.  

	
c.
	
Section 2.14 is hereby deleted in its entirety and the following substituted in its stead:

2.14Upfront Fees: In consideration of the execution of the Second Amendment to this Agreement, as of the Second Amendment Effective Date, there has been earned by the Revolving Credit Lenders, and the Borrowers shall pay, the “Upfront Fees” (so referred to herein) to the Administrative Agent on behalf of the Revolving Credit Lenders in an amount equal to 0.125% of each Revolving Credit Lender’s Revolving Credit Dollar Commitment as of the Effective Date.

	
d.
	
Section 4.27 of the Loan Agreement is hereby amended by adding new clauses (g) and (h) thereto as follows:

(g) Each Loan Party shall, upon the request of the Administrative Agent, use commercially reasonable efforts to cause each of its customs brokers, freight forwarders, consolidators and/or carriers to deliver an agreement (including, without limitation, a Customs Broker/Carrier Agreement) to the Administrative Agent covering such matters and in such form as the Administrative Agent may reasonably require within forty-five (45) days of such request (provided, the Administrative Agent may establish Reserves due to the failure to deliver such agreements).

(h) Each Loan Party shall, upon the request of the Administrative Agent, use commercially reasonable efforts to cause any of its landlords to deliver a Collateral Access Agreement to the Administrative Agent in such form as the Agent may reasonably require within forty-five (45) days of such request (provided, the Administrative Agent may establish Reserves due to the failure to deliver such agreements).

	
e.
	
Section 4.31 of the Loan Agreement is hereby amended by deleting it in its entirety and substituting the phrase “[Reserved.]” in its stead.

	
f.
	
Section 4.34 of the Loan Agreement is hereby amended and restated in its entirety as follows:

4.34.  Anti-Corruption Laws and Sanctions.  

(a)  The Loan Parties shall implement and maintain policies and procedures designed to ensure compliance by the Loan Parties, their Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Loan Parties, their Subsidiaries and their respective officers and employees and to the knowledge of the Borrowers, their directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects and are not knowingly engaged in any activity that would reasonably be expected to result in any Loan Party being designated as a Sanctioned Person.  None of (a) any Loan Party, any Subsidiary or, any of their respective directors, officers or employees, or (b) to the knowledge of the Borrowers, any agent of any Loan Party or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.   No Loan, credit extension or L/C, use of proceeds or other transaction contemplated by this Agreement will violate any Anti-Corruption Law or applicable Sanctions.

-7-

 

(b)  The Loan Parties will maintain in effect and enforce policies and procedures designed to ensure compliance by the Loan Parties, their Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.  

(c)  The Borrowers will not request any Loan or L/C, and the Borrowers shall not use, and shall procure that their Subsidiaries and their respective directors, officers, employees and agents shall not use, the proceeds of any Loan or L/C (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (C)  in any manner that would result in the violation of  any Sanctions applicable to any party hereto.  

	
g.
	
Section 5.6 of the Loan Agreement is hereby amended by adding a new clause (c) thereto as follows:

(c) An update to Exhibit 4.5 hereto reflecting new Store openings and which Stores have been closed during such quarter.

	
h.
	
Section 5.8 of the Loan Agreement is hereby amended by adding a new clause (c) thereto as follows:

(c) Calculate the Consolidated Fixed Charge Coverage Ratio (whether or not a Covenant Compliance Event has occurred and is continuing).

	
i.
	
Section 5.10(a) of the Loan Agreement is hereby amended by adding a new sentence at the end thereof as follows:

Without limitation to the foregoing, the Borrower’s representative shall, concurrently with delivery of each Borrowing Base Certificate required by Section 5.4 hereof, furnish the Administrative Agent with a summary, as of the date of such Borrowing Base Certificate, of all Banking Services Obligations due or to become due by any Loan Party to any Agent, Revolving Credit Lender, or any of their respective Affiliates.

	
j.
	
Section 7.4 of the Loan Agreement is hereby amended as follows:

(i) by adding the words “(other than Term Priority Collateral)” at the end of clause (a) and before subclause (i) thereof.

(ii) by adding the words “or any amounts representing proceeds of Term Priority Collateral deposited in a segregated DDA in favor of the Term Agent in which DDA no other funds shall be deposited” in the parenthetical at the end of clause (b)(i) thereof .

	
k.
	
Section 10.12 of the Loan Agreement is hereby amended by adding the following new clause thereto:

(c)the intercreditor provisions set forth in the Intercreditor Agreement shall, in whole or in part, cease to be effective or cease to be legally valid, binding and enforceable against the holders of the Term Loan, or (iii) the Borrowers’ Representative or any other Loan Party shall, directly or indirectly, disavow or contest in writing in any manner the effectiveness, validity or enforceability of any of the intercreditor provisions.

	
l.
	
Section 10.19 of the Loan Agreement is hereby amended by deleting the reference to “February 2, 2013” therein and substituting “February 1, 2014” in its stead.

-8-

 

	
m.
	
Section 14.5 of the Loan Agreement is hereby amended by adding the phrase “and each summary of Banking Services Obligations delivered by the Borrowers’ Representative pursuant to Section 5.10(a) hereof” in the third line thereof immediately after the phrase “pursuant to Article 5”.

	
n.
	
Article XIV of the Loan Agreement is hereby amended by adding a new section 14.11 at the end thereof as follows:

14.11.  Banking Services Exposure.  Each Revolving Credit Lender agrees to furnish the Administrative Agent (at such frequency as the Agent may reasonably request) with a summary of all Banking Services Obligations due or to become due to such Revolving Credit Lender or any of its Affiliates. In connection with any distributions to be made hereunder and with the establishment of the Banking Services Reserve, the Administrative Agent shall be entitled to assume that no amounts are due to any Revolving Credit Lender or any of its Affiliates on account of Banking Services Obligations unless the Administrative Agent has received written notice thereof from such Revolving Credit Lender or any Loan Party.

	
o.
	
Section 15.3 of the Loan Agreement is hereby amended by adding a new clause (m) at the end thereof as follows:

(m) amend or modify the provisions of the Intercreditor Agreement without Unanimous Consent;

	
p.
	
Section 17.1 of the Loan Agreement is hereby amended by deleting (a) Kevin J Simard, Esquire and replacing it with David S. Berman, Esquire, and (b) Dennis Hernreich and replacing it with Peter H. Stratton, Jr.

	
q.
	
The following new section is added to Article 19 of the Loan Agreement:

19.25Intercreditor Agreement

Each of the Loan Parties acknowledge that the exercise of certain of the Administrative Agent’s rights and remedies hereunder and under the other Loan Documents may be subject to, and restricted by, the provisions of the Intercreditor Agreement.  Nothing contained in the Intercreditor Agreement shall be deemed to modify any of the provisions of this Agreement and the other Loan Documents, which, as among the Loan Parties, the Administrative Agent, and the Revolving Credit Lenders shall remain in full force and effect.

	
r.
	
EXHIBITS 1.1(a), 2.23, and 5.8 of the Loan Agreement are hereby amended and restated in their entirety as of the Second Amendment Effective Date as set forth in Annex A hereto.

	
5.
	
Conditions to Effectiveness.  This Second Amendment shall not be effective until each of the following conditions precedent has been fulfilled to the satisfaction of, or waived by, the Administrative Agent and the Revolving Credit Lenders:

	
a.
	
This Second Amendment shall have been duly executed and delivered by the Borrowers, the Borrowers’ Representative, the Guarantors, and the Revolving Credit Lenders.  The Administrative Agent shall have received a fully executed original or .pdf copy hereof.

	
b.
	
Each Revolving Credit Lender that so requests shall have a received a Revolving Credit Note duly executed and delivered by each Borrower in the full amount of such Revolving Credit Lender’s Revolving Credit Dollar Commitment as of the date hereof.

	
c.
	
All action on the part of each Loan Party necessary for the valid execution, delivery and performance by such Loan Party of this Amendment shall have been duly and effectively taken.

-9-

 

	
d.
	
Prior to or substantially simultaneously with the effectiveness of this Second Amendment, the Borrowers shall have received at least $15,000,000 in gross cash proceeds from borrowings under the Term Loan and the Term Loan Agreement shall be in full force and effect.

	
e.
	
The Intercreditor Agreement shall have been duly executed and delivered by each party thereto, and shall be in full force and effect.

	
f.
	
All fees payable under the Fee Letter and all Upfront Fees payable to the Revolving Credit Lenders under Section 2.14, as modified by this Second Amendment, and all out-of-pocket expenses of the Agents, including attorneys’ fees, shall have been paid in full on the Second Amendment Effective Date.

	
g.
	
There shall not have occurred a material adverse change (x) in the business, assets, properties, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects of the Borrowers’ Representative and its subsidiaries, taken as a whole, since February 1, 2014, or (y) in the facts and information regarding such entities as represented by such entities to date.

	
h.
	
After giving effect to this Second Amendment, no Default or Event of Default shall have occurred and be continuing.

	
i.
	
The Administrative Agent shall have received, in form and substance reasonably satisfactory to it, all such opinions of counsel or certifications as it may reasonably request.

	
6.
	
Loan Document.  This Second Amendment shall constitute a Loan Document for all purposes.

	
7.
	
Binding Effect.  The terms and provisions hereof shall be binding upon the parties hereto and their successors and assigns and shall inure to the benefit of each Agent and each Revolving Credit Lender and their respective successors and assigns.

	
8.
	
Multiple Counterparts.   This Second Amendment may be executed in multiple counterparts, each of which shall constitute an original and which together shall constitute but one and the same instrument.  The delivery of an executed counterpart of a signature page of this Second Amendment by telecopier or other electronic transmission shall be as effective as delivery of a manually executed counterpart.

	
9.
	
Severability.  Any determination that any provision of this Second Amendment or any application thereof is invalid, illegal, or unenforceable in any respect 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 provision of this Second Amendment.

	
10.
	
Headings.  The headings at various places in this Second Amendment are intended for convenience only and shall not affect the interpretation of this Second Amendment.

	
11.
	
Governing Law.  THIS SECOND AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE COMMONWEALTH OF MASSACHUSETTS WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.

[Signature Pages Follow]

 

 

 

-10-

 

IN WITNESS WHEREOF, this Second Amendment has been duly executed and delivered by each of the parties hereto as of the date first above written and is intended to take effect as a sealed instrument.

 

	
BORROWERS:

	
 

	
DESTINATION XL GROUP, INC. (f/k/a Casual Male Retail Group, Inc.), as a Borrower

	
 

	
By
	
 
	
/s/ David A. Levin

	
Name:
	
 
	
David A. Levin

	
Title:
	
 
	
President and Chief Executive Officer

	
 
	
 
	
 

	
CMRG APPAREL, LLC, as a Borrower

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter H. Stratton, Jr.

	
Name:
	
 
	
Peter H. Stratton, Jr.

	
Title:
	
 
	
Senior Vice President, Chief Financial Officer and Treasurer

	
 
	
 
	
 

	
BORROWERS’ REPRESENTATIVE:

	
 
	
 
	
 

	
DESTINATION XL GROUP, INC. (f/k/a Casual Male Retail Group, Inc.), as Borrowers’ Representative

	
 
	
 
	
 

	
By
	
 
	
/s/ David A. Levin

	
Name:
	
 
	
David A. Levin

	
Title:
	
 
	
President and Chief Executive Officer

	
 
	
 
	
 

 

 

 

[Signature Page to Second Amendment]

 

 

	
GUARANTORS:

	
 
	
 
	
 

	
CASUAL MALE CANADA INC.

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter H. Stratton, Jr.

	
Name: 
	
 
	
Peter H. Stratton, Jr.

	
Title: 
	
 
	
Senior Vice President, Chief Financial Officer and Treasurer

	
 
	
 
	
 

	
CAPTURE, LLC

	
 
	
 
	
 

	
By:
	
 
	
Casual Male Store, LLC, its sole Member

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter H. Stratton, Jr.

	
Name:
	
 
	
Peter H. Stratton, Jr.

	
Title:
	
 
	
Senior Vice President, Chief Financial Officer and Treasurer

	
 
	
 
	
 

	
CASUAL MALE STORE, LLC

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter H. Stratton, Jr.

	
Name:
	
 
	
Peter H. Stratton, Jr.

	
Title:
	
 
	
Senior Vice President, Chief Financial Officer and Treasurer

	
 
	
 
	
 

	
CASUAL MALE RETAIL STORE, LLC

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter H. Stratton, Jr.

	
Name:
	
 
	
Peter H. Stratton, Jr.

	
Title:
	
 
	
Senior Vice President, Chief Financial Officer and Treasurer

	
 
	
 
	
 

	
CASUAL MALE DIRECT, LLC

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter H. Stratton, Jr.

	
Name:
	
 
	
Peter H. Stratton, Jr.

	
Title:
	
 
	
Senior Vice President, Chief Financial Officer and Treasurer

 

 

 

[Signature Page to Second Amendment]

 

 

	
CASUAL MALE RBT, LLC

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter H. Stratton, Jr.

	
Name:
	
 
	
Peter H. Stratton, Jr.

	
Title:
	
 
	
Senior Vice President, Chief Financial Officer and Treasurer

	
 
	
 
	
 

	
CASUAL MALE RBT (U.K.) LLC

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter H. Stratton, Jr.

	
Name:
	
 
	
Peter H. Stratton, Jr.

	
Title:
	
 
	
Senior Vice President, Chief Financial Officer and Treasurer

	
 
	
 
	
 

	
CANTON PL LIQUIDATING CORP. 

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter H. Stratton, Jr.

	
Name:
	
 
	
Peter H. Stratton, Jr.

	
Title:
	
 
	
Senior Vice President, Chief Financial Officer and Treasurer

	
 
	
 
	
 

	
THINK BIG PRODUCTS LLC 

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter H. Stratton, Jr.

	
Name:
	
 
	
Peter H. Stratton, Jr.

	
Title:
	
 
	
Senior Vice President, Chief Financial Officer and Treasurer

	
 
	
 
	
 

	
CMXL APPAREL, LP 

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter H. Stratton, Jr.

	
Name:
	
 
	
Peter H. Stratton, Jr.

	
Title:
	
 
	
Senior Vice President, Chief Financial Officer and Treasurer

	
 
	
 
	
 

	
CMRG HOLDCO, LLC 

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter H. Stratton, Jr.

	
Name:
	
 
	
Peter H. Stratton, Jr.

	
Title:
	
 
	
Senior Vice President, Chief Financial Officer and Treasurer

 

 

 

[Signature Page to Second Amendment]

 

 

	
CMRG APPAREL MANAGEMENT, 

	
INC. 

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter H. Stratton, Jr.

	
Name:
	
 
	
Peter H. Stratton, Jr.

	
Title:
	
 
	
Senior Vice President, Chief Financial Officer and Treasurer

	
 
	
 
	
 

	
CASUAL MALE (EUROPE) LLC 

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter H. Stratton, Jr.

	
Name:
	
 
	
Peter H. Stratton, Jr.

	
Title:
	
 
	
Senior Vice President, Chief Financial Officer and Treasurer

 

 

 

[Signature Page to Second Amendment]

 

 

	
AGENTS:

	
 
	
 
	
 

	
bank of america, n.a., as Administrative Agent, as Collateral Agent, and as a Revolving Credit Lender

	
 
	
 
	
 

	
By:  
	
 
	
/s/ David Vega

	
Name:  
	
 
	
David Vega

	
Title:
	
 
	
Managing Director

 

 

 

[Signature Page to Second Amendment]

 

 

	
REVOLVING CREDIT LENDERS:

	
 
	
 
	
 

	
JPMORGAN CHASE BANK, N.A., as a Revolving Credit Lender

	
 
	
 
	
 

	
By:
	
 
	
/s/Nisha Gupta

	
Name:
	
 
	
Nisha Gupta

	
Title:
	
 
	
Authorized Officer

 

 

 

[Signature Page to Second Amendment]

 

 

	
WELLS FARGO Bank, NATIONAL ASSOCIATON, as a Revolving Credit Lender

	
 
	
 
	
 

	
By:
	
 
	
/s/ Connie Liu

	
Name:  
	
 
	
Connie Liu

	
Title:  
	
 
	
Director

 

 

 

[Signature Page to Second Amendment]

 

ANNEX A

Exhibit1.1(a)

 

																
	
OPERATING LEASES
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
RICOH 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Equipment currently under Lease with Commencement Date of 02/01/10:
	
 
	
 

	
1-Ricoh MPC4000 Color Copier
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
1-Ricoh MPC3300 Color Copier
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
6-Ricoh MC5000 B&W Copiers
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
3-Ricoh MP6000 B&W Copiers
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
2-Ricoh MP3350 B&W Copiers
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Lease Commencement Date 
	
Lease
	
Monthly Payment
	
Lease Expiration Date
	
Total Lease
	
 
	
 
	
 
	
 
	
 
	
 

	
1/7/2010
	
60 months
	
*** 
	
1/6/2015
	
*** 
	
 
	
 
	
 
	
 
	
 
	
 

	
2/1/2010
	
60 months
	
*** 
	
1/31/2015
	
*** 
	
 
	
 
	
 
	
 
	
 
	
 

	
7/1/2012
	
60 months
	
*** 
	
7/1/2017
	
*** 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Equipment under Lease commencing approximately 11/01/10:
	
 
	
 
	
 
	
 

	
1 -Ricoh MP6002 SP copier
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
2- Ricoh MP5002 SP copiers
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
2 -Ricoh MP3353 SP copiers
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
1 - Ricoh Aficio MP8001 SP copier
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
5 - Ricoh MP4002 SP copiers
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
2- Richoh MPC3003 copiers
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
1-Ricoh C5100S copier
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Lease Commencement Date (1)
	
 
	
Term of Lease
	
 
	
Monthly Payment
	
 
	
Lease Expiration Date 
	
 
	
Total Lease
	
 
	
 

	
10/1/2014
	
 
	
62 months (2)
	
 
	
***
	
 
	
12/1/2019
	
 
	
*** 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
(1) Commencement Date is approximate.  Lease commences as of the equipment delivery date.

	
(2) First 2 months payment $0; Months 3 – 62 = *** / month.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
IBM CREDIT LLC
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Equipment under Contract commencing approximately 02/01/2015:
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
1 – 9992-003 IBM PureData System for analytics N2002-005
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Commencement Date 
	
 
	
Monthly Payment
	
Total 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
2/1/2015
	
9 months
	
*** 
	
*** 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Equipment is owned after term ends.
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

	
***
	
Represents text omitted pursuant to a request for confidential treatment. The omitted material has been filed separately with the Securities and Exchange Commission. 

 

 

 

Annex A

 

Exhibit 2.23

 

			
	
Revolving Credit Lenders’ Commitments
	
Revolving Credit Lender Revolving Credit

Dollar Commitment
	
Revolving Credit

Percentage

Commitment

	
Bank of America, N.A.
	
$55,000,000
	
44.000000000%

	
JPMorgan Chase Bank,

N.A.
	
$35,000,000
	
28.000000000%

	
Wells Fargo Bank, National

Association
	
$35,000,000
	
28.000000000%

	
Total
	
$125,000,000
	
100%

 

 

 

Annex A

 

Exhibit 5.8

EXHIBIT 5.8 to Loan and Security Agreement

Form of Compliance Certificate

[Company Letterhead]

_______________________, 20__

Bank of America, N.A., as Administrative Agent

100 Federal Street, 9th Floor

Boston, MA 02110

Attention: Christopher Santos, Retail Analyst

RE: DESTINATION XL GROUP, INC.

(the “Borrower’s Representative”)

Financial Statement For: The [month][quarter][year] ended __________________, 20__.

Dear Chris:

This Certificate accompanies the above described financial statement (the “Financial Statement”) furnished to you by the Borrower’s Representative and is delivered in accordance with Article 5 of the Loan and Security Agreement dated November 10, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”) between, among others, the Borrower’s Representative, the Borrowers, and you. Terms used herein which are defined in the Loan Agreement are used as so defined.

The undersigned have each reviewed the Financial Statement, the Loan Agreement, and each of the other Loan Documents, and has made such inquiry as the undersigned deem appropriate. Following such review, the undersigned CERTIFIES as follows:

(a) Financial Statement. The Financial Statement was prepared in accordance with GAAP consistently applied and present fairly the consolidated financial condition of the Loan Parties at the close of, and the results of the Loan Parties’ operations and cash flows for, the period(s) covered by the Financial Statement, subject however (unless this Certificate accompanies the annual Financial Statement) to usual year end adjustment.

(b) Defaults. Except as set forth below, no Default has occurred or is continuing. If a Default has occurred, the following describes the nature of the Default in reasonable detail and the steps, if any, being taken or contemplated by the Loan Parties to be taken on account thereof.

Describe Default(s) and steps taken (Note, if no Default has occurred, insert “Not Applicable”):

(c) Notices. No event, immediate notice of which is to be provided by the Borrower’s Representative in accordance with Section 5.3 of the Loan Agreement, has occurred, other than those events, written notice of which has previously been provided and those events (if any) described below:

Describe Section 5-3 events (Note, if no such event has occurred, insert “Not Applicable”):

(d) Consolidated Fixed Charge Coverage Ratio. The reasonably detailed calculations with respect to the Consolidated Fixed Charge Coverage Ratio for the Fiscal Month ending ______________ are attached hereto as Appendix I.

Annex A

 

(e) [Store Openings/Store Closings. A list of Stores that were opened and/or closed, including, without limitation, the name and address of each such Store and date of the opening or closing, since the Fiscal Quarter ending on __________, is attached hereto as Appendix II. Exhibit 4.5 of the Loan Agreement is deemed updated to reflect the information set forth in such Appendix II.

(Note, if no Store openings or closings have occurred, insert “Not Applicable”.)]1

 

	
Destination XL Group, Inc.

	
 
	
 
	
 

	
By:
	
 
	
Peter H. Stratton, Jr.

	
 
	
 
	
Senior Vice President and CFO

1 NTD: to be used only if accompanying quarterly financial statements

 

 

 

Annex A

 

Appendix I to Compliance Certificate

The following is a calculation of Consolidated Fixed Charge Coverage Ratio for the Fiscal Month ending on ___________________:

 

 

 

Annex A

 

Appendix II to Compliance Certificate

The following Stores were opened since __________ (the date of the last similar certification):

 

			
	
Name
	
Address
	
Date

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

The following Stores were closed since __________ (the date of the last similar certification):

 

			
	
Name
	
Address
	
Date

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

 

Annex A

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}]]