Document:

Ex-10.1

 

Exhibit 10.1

FIRST SUPPLEMENTAL INDENTURE

BETWEEN

DICK’S SPORTING GOODS, INC., AS ISSUER

AND

WACHOVIA BANK, NATIONAL ASSOCIATION, AS TRUSTEE

Dated as of December 22, 2004

TO

   

INDENTURE

Dated as of February 18, 2004

SENIOR CONVERTIBLE
SECURITIES DUE 2024

 

 

FIRST SUPPLEMENTAL INDENTURE

     THIS FIRST SUPPLEMENTAL INDENTURE (this “First Supplemental Indenture”) is made as of
the 22nd day of December, 2004, between Dick’s Sporting Goods, Inc. (the “Company”), and
Wachovia Bank, National Association, as trustee (the “Trustee”).

     WHEREAS, the Company and the Trustee heretofore executed and delivered an Indenture dated as
of February 18, 2004 (the “Indenture”); and

     WHEREAS, pursuant to the Indenture the Company issued, and the Trustee authenticated and
delivered, the Company’s $255,085,000 Aggregate Principal Amount at Maturity Senior Convertible
Notes due 2024 (the “Securities”); and

     WHEREAS, Section 11.2 of the Indenture provides that the Company, with the consent of the
Holders of at least a majority in aggregate principal amount of the Securities then outstanding,
and the Trustee may enter into an amendment, waiver or supplemental indenture thereto for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of the Indenture or of modifying in any manner the rights of the Holders of the Securities to the
extent set forth therein; and

     WHEREAS, pursuant to its Consent Solicitation Statement dated December 9, 2004, the Company
solicited consents of the Holders to the amendment set forth in this First Supplemental Indenture
(the “Amendment”); and

     WHEREAS, the Holders of at least a majority in aggregate principal amount of the Securities
then outstanding have duly consented to the Amendment in accordance with Section 11.2 of the
Indenture; and

     WHEREAS, all conditions necessary to authorize the execution and delivery of this First
Supplemental Indenture and to make this First Supplemental Indenture valid and binding have been
complied with or have been done or performed;

     NOW, THEREFORE, in consideration of the foregoing and notwithstanding any provision of the
Indenture which, absent this First Supplemental Indenture, might operate to limit such action, the
Company and the Trustee agree as follows for the equal and ratable benefit of the Holders of the
Securities:

ARTICLE 1

DEFINITIONS

SECTION 1.01 GENERAL.

     For all purposes of the Indenture and this First Supplemental Indenture, except as otherwise
expressly provided or unless the context otherwise requires:

	(a)	 	The words “herein,” “hereof” and “hereunder” and other words of similar import
refer to the Indenture and this First Supplemental Indenture as a whole and not to any
particular Article, Section or subdivision; and
	 
	(b)	 	Capitalized terms used but not defined herein shall have the meanings assigned to
them in the Indenture.

 

 

ARTICLE 2

AMENDMENT

     2.01 Amendment to Section 4.1 and Section 4.2 of the Indenture — Conversion Privilege and
Conversion Procedure.

     Sections 4.1(c) of the Indenture has been stricken in its entirety, and Section 4.1(b) and
Section 4.2(b) of the Indenture are hereby amended and restated in its entirety as follows:

     SECTION 4.1. CONVERSION PRIVILEGE.

     (b) The Holders’ rights to convert Securities into shares of Common Stock is subject to
the Company’s obligation to pay each such Holder the amount of cash set forth in this paragraph, in
lieu of delivering some or all of such shares of Common Stock. The Company will pay to a Holder
cash for each $1,000 Principal Amount at Maturity of a Security surrendered for conversion in an
amount equal to the lesser of (1) the Accreted Principal Amount of such Security surrendered by
such Holder on the Conversion Date and (2) the product of (i) the number of shares of Common Stock
into which such Security otherwise would have been converted if no cash payment were made by the
Company, multiplied by (ii) the Average Sale Price of a share of Common Stock. The Company shall
determine that number of shares (the “Balance Shares”) which equals the number of shares of Common
Stock into which such Security of such Holder otherwise would be converted if no cash payment were
made by the Company, reduced, but not below zero, by an amount equal to the Accreted Principal
Amount of such Security on the Conversion Date, divided by the Average Sale Price of a share of
Common Stock. If the number of Balance Shares is zero, a Holder will not be entitled to any further
payment of cash or shares upon conversion. If the number of Balance Shares is greater than zero,
the Company will have the option to deliver cash or a combination of cash and shares of Common
Stock for the Balance Shares by electing for each full Balance Share for which the Company has
chosen to deliver cash to pay cash in an amount equal to the Average Sale Price of a share of
Common Stock.

     SECTION 4.2. CONVERSION PROCEDURE.

     (b) The Company shall deliver to the Holder surrendering such Security the amount of cash
payable with respect to such Security no later than the second Business Day following the
determination of the applicable Average Sale Price, together with a certificate for the number of
full shares of Common Stock, if any, deliverable upon the conversion (to the extent certificated)
and cash in lieu of any fractional share determined pursuant to Section 4.3 hereof. If shares of
Common Stock are delivered as consideration, then the Person in whose name the certificate
representing such shares is registered shall be treated as a stockholder of record of the Company
on and after the Conversion Date; provided, however, that no surrender of a Security on any date
when the stock transfer books of the Company shall be closed shall be effective to constitute the
Person or Persons entitled to receive the shares of Common Stock upon such conversion as the record
holder or holders of such shares of Common Stock on such date, but such surrender shall be
effective to constitute the Person or Persons entitled to receive such shares of Common Stock as
the record holder or holders thereof for all purposes at the close of business on the next
succeeding day on which such stock transfer books are open; such conversion shall be at the
Conversion Rate in effect on the Conversion Date. Upon conversion of a Security, such Person shall
no longer be a Holder of such Security.

 

 

ARTICLE 3

MISCELLANEOUS

     3.01 Effectiveness.

     This First Supplemental Indenture shall become effective upon its execution and delivery by
the Company and the Trustee. Upon the execution and delivery of this First Supplemental Indenture
by the Company and the Trustee, the Indenture shall be supplemented in accordance herewith, and
this First Supplemental Indenture shall form a part of the Indenture for all purposes, and every
Holder of Securities heretofore or hereafter authenticated and delivered under the Indenture shall
be bound hereby.

     3.02 Indenture Remains in Full Force and Effect.

     Except as supplemented hereby, all provisions in the Indenture shall remain in full force and
effect. For the avoidance of doubt, the parties confirm that the Amendment, and the payment by the
Company and the receipt by the Holders of the Securities of a fee in respect of the consent of the
Holders to such Amendment, are not intended by the parties to (i) discharge, rescind, cancel or
extinguish all or any part of the indebtedness represented by the Securities, or (ii) effect a
novation, reissuance or disposition of the indebtedness represented by the Securities or to create
new indebtedness in respect of the indebtedness represented by the Securities.

     3.03 Indenture and First Supplemental Indenture Construed Together.

     This First Supplemental Indenture is an indenture supplemental to the Indenture, and the
Indenture and this First Supplemental Indenture shall henceforth be read and construed together.
From and after the effectiveness of this First Supplemental Indenture, all references to the
Indenture in the Indenture and the Securities shall refer to the Indenture as supplemented hereby.

     3.04 Confirmation and Preservation of Indenture.

     The Indenture as supplemented by this First Supplemental Indenture is in all respects
confirmed and preserved.

     3.05 Conflict with Trust Indenture Act.

     If any provision of this First Supplemental Indenture limits, qualifies or conflicts with any
provision of the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”), that
is required under the Trust Indenture Act to be part of and govern any provision of this First
Supplemental Indenture, the provision of the Trust Indenture Act shall control. If any provision
of this First Supplemental Indenture modifies or excludes any provision of the Trust Indenture Act
that may be so modified or excluded, the provision of the Trust Indenture Act shall be deemed to
apply to the Indenture as so modified or to be excluded by this First Supplemental Indenture, as
the case may be.

     3.06 Severability.

     In case any provision in this First Supplemental Indenture shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

 

 

     3.07 Headings.

     The Article and Section headings of this First Supplemental Indenture have been inserted for
convenience of reference only, are not to be considered a part of this First Supplemental Indenture
and shall in no way modify or restrict any of the terms or provisions hereof.

     3.08 Benefits of Supplemental Indenture, etc.

     Nothing in this First Supplemental Indenture or the Securities, express or implied, shall give
to any person, other than the parties hereto and thereto and their successors hereunder and
thereunder and the Holders of the Securities, any benefit of any legal or equitable right, remedy
or claim under the Indenture, this First Supplemental Indenture or the Securities.

     3.09 Successors.

     All agreements of the Company in this First Supplemental Indenture shall bind its successors.
All agreements of the Trustee in this First Supplemental Indenture shall bind its successors.

     3.10 Trustee Not Responsible for Recitals.

     The recitals contained herein shall be taken as the statements of the Company, and the Trustee
assumes no responsibility for their correctness. The Trustee shall not be liable or responsible for
the validity or sufficiency of this First Supplemental Indenture or the due authorization of this
First Supplemental Indenture by the Company.

     3.11 Certain Duties and Responsibilities of the Trustee.

     In entering into this First Supplemental Indenture, the Trustee shall be entitled to the
benefit of every provision of the Indenture relating to the conduct of, affecting the liability of
or affording protection to the Trustee, whether or not elsewhere herein so provided.

     3.12 Governing Law.

     THE INTERNAL LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS FIRST
SUPPLEMENTAL INDENTURE.

     3.13 Counterpart Originals.

     The parties may sign any number of copies of this First Supplemental Indenture. Each signed
copy shall be an original, but all of them together represent the same agreement.

     3.14 Further Assurances.

     The Company will, upon request by the Trustee, execute and deliver such further instruments
and do such further acts as may reasonably be necessary or proper to carry out more effectively the
purposes of this First Supplemental Indenture.

[SIGNATURE PAGE FOLLOWS]

 

 

     IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the date and year
first above written

Dick’s Sporting Goods, Inc.

By: /s/ William R. Newlin

Name: William R. Newlin

Title: Executive Vice President and Chief

          Administrative Officer

By: /s/ Michael F. Hines

Name: Michael F. Hines

Title: Executive Vice President, Chief Financial

          Officer and Secretary

Wachovia Bank, National Association

By: /s/ Alan G. Finn

Name: Alan G. Finn

Title: Vice PresidentEx-10.2

 

Exhibit 10.2

CONSENT TO SECOND AMENDED AND

RESTATED CREDIT AGREEMENT

     CONSENT, dated as of December 23, 2004, to the Second Amended and Restated Credit Agreement
referred to below (this “Consent”) among DICK’S SPORTING GOODS, INC., a Delaware corporation
(“Borrower”), the lenders party hereto (“Lenders”), and GENERAL ELECTRIC CAPITAL
CORPORATION, a Delaware corporation, as agent for the Lenders (in such capacity, “Agent”).

W I T N E S S E T H

     WHEREAS, Borrower, Lenders and Agent are parties to that certain Second Amended and Restated
Credit Agreement, dated as of July 28, 2004 (as amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”);

     WHEREAS, Borrower has requested, among other things, that Agent and Required Lenders consent
to certain modifications to the terms of the Convertible Note Indenture; and

     WHEREAS, Agent and Required Lenders have agreed to amend the Credit Agreement in the manner,
and on the terms and conditions, provided for herein;

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

     1. Definitions. Capitalized terms not otherwise defined herein (including in the
recitals hereto) shall have the meanings ascribed to them in the Credit Agreement.

     2. Consent. Agent and Required Lenders hereby consent as of the Consent Effective Date
(as hereinafter defined) (a) to the amendments to the Convertible Note Indenture solely to the
extent provided for in that certain Consent Solicitation Statement of Dick’s Sporting Goods, Inc.,
a copy of which in final form is attached as Exhibit A hereto and (b) in connection with such
amendments, to payment by Borrower of the Consent Payment provided for in such Consent Solicitation
Statement.

     3. Representations and Warranties. To induce Required Lenders and Agent to enter into
this Consent, Borrower hereby represents and warrants that:

          (a) Each of the execution, delivery and performance by Borrower and each Guarantor of this
Consent and the performance of the Credit Agreement, as modified hereby (the “Amended Credit
Agreement”) are (i) within Borrower’s and each Guarantor’s corporate power and have been duly
authorized by all necessary corporate and shareholder action; (ii) do not contravene any provision
of any

 

 

Loan Party’s charter or bylaws or equivalent organizational or charter or other constituent
documents; (iii) do not violate any law or regulation, or any order or decree of any court or
Governmental Authority; (iv) do not conflict with or result in the breach or termination of,
constitute a default under or accelerate or permit the acceleration of any performance required by,
any indenture, mortgage, deed of trust, lease, agreement or other instrument to which any Loan
Party is a party or by which any Loan Party or any of its property is bound; (v) do not result in
the creation or imposition of any Lien upon any of the property of any Loan Party other than those
in favor of Agent, on behalf of itself and the Lenders, pursuant to the Loan Documents; and (vi) do
not require the consent or approval of any Governmental Authority or any other Person.

          (b) This Consent has been duly executed and delivered by or on behalf of Borrower and each
Guarantor.

          (c) Each of this Consent and the Amended Credit Agreement constitutes a legal, valid and
binding obligation of Borrower and each Guarantor enforceable against Borrower and each Guarantor
in accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by
general equitable principles (whether enforcement is sought by proceedings in equity or at law).

          (d) No Default or Event of Default has occurred and is continuing both before and after giving
effect to this Consent.

          (e) No action, claim or proceeding is now pending or, to the knowledge of any Loan Party
signatory hereto, threatened against such Loan Party, at law, in equity or otherwise, before any
court, board, commission, agency or instrumentality of any federal, state, or local government or
of any agency or subdivision thereof, or before any arbitrator or panel of arbitrators, which
challenges such Loan Party’s right, power, or competence to enter into this Consent or, to the
extent applicable, perform any of its obligations under this Consent, the Amended Credit Agreement
or any other Loan Document, or the validity or enforceability of this Consent, the Amended Credit
Agreement or any other Loan Document or any action taken under this Consent, the Amended Credit
Agreement or any other Loan Document or which if determined adversely could have or result in a
Material Adverse Effect. To the knowledge of each Loan Party, there does not exist a state of
facts which is reasonably likely to give rise to such proceedings.

          (f) All representations and warranties of the Loan Parties contained in the Credit Agreement
and the other Loan Documents are true and correct as of the date hereof with the same effect as
though such representations and warranties had been made on and as of the date hereof, except to
the extent that any such representation or warranty expressly relates to an earlier date and except
for changes therein expressly permitted or expressly contemplated by the Credit Agreement.

     4. Remedies. This Consent shall constitute a Loan Document. The breach by any Loan
Party of any representation, warranty, covenant or agreement in any

2

 

material respect in this Consent shall constitute an immediate Event of Default hereunder and
under the other Loan Documents.

     5. No Other Amendments, Consents or Waivers. Except as expressly modified herein, the
Credit Agreement and the other Loan Documents shall be unmodified and shall continue to be in full
force and effect in accordance with their terms. In addition, this Consent shall not be deemed a
waiver of any term or condition of any Loan Document by Agent or Lenders with respect to any right
or remedy which Agent or Lenders may now or in the future have under the Loan Documents, at law or
in equity or otherwise or be deemed to prejudice any rights or remedies which Agent or Lenders may
now have or may have in the future under or in connection with any Loan Document or under or in
connection with any Default or Event of Default which may now exist or which may occur after the
date hereof. The Credit Agreement and all other Loan Documents are hereby in all respects ratified
and confirmed.

     6. Expenses. Borrower hereby reconfirms its obligations pursuant to Section
11.2 of the Credit Agreement to pay and reimburse Agent for all reasonable out-of-pocket
expenses (including, without limitation, reasonable fees of counsel) incurred in connection with
the negotiation, preparation, execution and delivery of this Consent and all other documents and
instruments delivered in connection herewith.

     7. Effectiveness. This Consent shall become effective as of December23, 2004 (the
“Consent Effective Date”) only upon satisfaction in full in the judgment of the Agent of
each of the following conditions on or prior to December 23, 2004:

          (a) Consent. Agent shall have received eight (8) original copies of this Consent duly
executed and delivered by Agent, Required Lenders and Borrower and acknowledged by the other Loan
Parties.

          (b) Payment of Expenses. Borrower shall have paid to Agent all costs and expenses
owing in connection with this Consent and the other Loan Documents which are due to Agent
(including, without limitation, reasonable legal fees and expenses).

          (c) Representations and Warranties. All representations and warranties contained in
this Consent shall be true and correct on and as of the Consent Effective Date.

     8. GOVERNING LAW. THIS CONSENT SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.

     9. Counterparts. This Consent may be executed by the parties hereto on any number of
separate counterparts and all of said counterparts taken together shall be deemed to constitute one
and the same instrument.

(REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)

3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Consent to be duly executed and
delivered as of the day and year first above written.

BORROWER:

DICK’S SPORTING GOODS, INC.

By: /s/ Lee Belitsky 

Name: Lee Belitsky

Title: Treasurer

AGENT:

GENERAL ELECTRIC CAPITAL

CORPORATION, as Agent

By: /s/ Charles Chiodo 

Name: Charles Chiodo

Its: Duly Authorized Signatory

LENDERS:

GENERAL ELECTRIC CAPITAL

CORPORATION

By: /s/ Charles Chiodo 

Name: Charles Chiodo

Its: Duly Authorized Signatory

4

 

PNC BANK, NATIONAL ASSOCIATION

By: /s/ Stephen W. Boyd 

Name: Stephen W. Boyd

Title: Vice President

FLEET RETAIL GROUP, INC.

By: /s/ James R. Dore 

Name: James R. Dore

Title: Managing Director

NATIONAL CITY BUSINESS CREDIT, INC.

By: /s/ Joseph L. Kwasny 

Name: Joseph L. Kwasny

Title: Director

WACHOVIA BANK, NATIONAL ASSOCIATION

By: /s/ Anthony D. Braxton 

Name: Anthony D. Braxton

Title: Director

CITIZEN’S BANK OF PENNSYLVANIA

By: /s/ Don Cmar 

Name: Don Cmar

Title: Vice President

JP MORGAN CHASE BANK

By:   

Name:

Title:

5

 

Each of the undersigned Guarantors hereby (i) acknowledges each of the modifications to the Credit
Agreement effected by this Consent and (ii) confirms and agrees that its obligations under its
Guaranty shall continue without any diminution thereof and shall remain in full force and effect on
and after the effectiveness of this Consent.

ACKNOWLEDGED, CONSENTED and

AGREED to as of the date first written

above.

AMERICAN SPORTS LICENSING, INC.

By: /s/ Michael F. Hines 

Name: Michael F. Hines

Title: President

DSG OF VIRGINIA, LLC

By: /s/ Jeffrey R. Hennion 

Name: Jeffrey R. Hennion

Title: President

GALYAN’S TRADING COMPANY, INC.

By: /s/ Michael F. Hines 

Name: Michael F. Hines

Title: Vice President, Secretary and Treasurer

GALYAN’S NEVADA, INC.

By: /s/ William R. Newlin 

Name: William R. Newlin

Title: President

GALYAN’S OF VIRGINIA, INC.

By: /s/ William R. Newlin 

Name: William R. Newlin

Title: President

6

 

EXHIBIT A

[Final Version of Consent Solicitation Statement]

7

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