Document:

Exhibit 10.13

 

AMENDMENT NO. 1 TO INTERCREDITOR AGREEMENT

 

THIS AMENDMENT NO. 1 TO INTERCREDITOR AGREEMENT (this “Amendment”), dated as of April 8, 2013 (the “Effective Date”), is among JPMORGAN CHASE BANK, N.A., in its capacities as administrative agent and collateral agent (together with its successors and assigns in such capacities, the “ABL Agent”) for the ABL Lenders and JPMORGAN CHASE BANK, N.A., in its capacities as administrative agent and collateral agent (together with its successors and assigns in such capacities, the “Term Agent”) for the Term Lenders (unless otherwise defined herein, all terms used herein with their initial letter capitalized shall have the meaning given such terms in the Intercreditor Agreement (as defined below)).

 

WHEREAS, the ABL Borrower, the ABL Guarantors, the ABL Credit Agreement Lenders and the ABL Agent are parties to that certain Credit Agreement dated as of April 6, 2012 (as such agreement may be amended, supplemented, restated or otherwise modified from time to time, the “ABL Credit Agreement”); and

 

WHEREAS, the Term Borrower, the Term Guarantors, the Term Credit Agreement Lenders and the Term Agent are parties to that certain Credit Agreement dated as of April 6, 2012 (as such agreement may be amended, supplemented, restated or otherwise modified from time to time, the “Term Credit Agreement”); and

 

WHEREAS, as a condition to the effectiveness of the ABL Credit Agreement and the Term Credit Agreement, the ABL Agent and the Term Agent entered into that certain Intercreditor Agreement dated as of April 6, 2012 (the “Intercreditor Agreement”); and

 

WHEREAS, on even date herewith the ABL Credit Agreement and the Term Credit Agreement are being amended to allow, among other things, for an increase in the Term Obligations (the “Financing Amendments”); and

 

WHEREAS, the parties hereto desire to amend the Intercreditor Agreement on the terms and conditions set forth herein to allow, among other things, for an increase in the Term Obligations; and

 

WHEREAS, the execution and delivery of this Amendment is a condition to the effectiveness of the Financing Amendments.

 

NOW THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, the parties hereto hereby agree to amend the Intercreditor Agreement as follows:

 

SECTION 1                               Amendments.  In reliance on the representations, warranties, and agreements contained in this Amendment, the Intercreditor Agreement is hereby amended, effective as of the Effective Date, to amend and restate the definitions of “Term Documents” and  “Term Obligations” in Section 1.2 of the Intercreditor Agreement so that such definitions read in full as follows:

 

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“Term Documents” shall mean any Term Credit Agreement, any Term Collateral Documents, any Bank Products Agreement between any Term Loan Party and any Term Bank Products Affiliate, any Hedging Agreements between any Term Loan Party and any Term Hedging Affiliate, those other ancillary agreements as to which the Term Agent or any Term Lender is a party or a beneficiary and all other agreements, instruments, documents and certificates, now or hereafter executed by or on behalf of any Term Loan Party or any of its respective Subsidiaries or Affiliates, and delivered to the Term Agent, in connection with any of the foregoing or any Term Credit Agreement, in each case as the same may be amended, supplemented, restated or otherwise modified from time to time.

 

“Term Obligations” shall mean all obligations of every nature of each Term Loan Party from time to time owed to the Term Agent, the Term Lenders or any of them, under any Term Document (including in respect of Incremental Term Loans), whether for principal, interest (including interest which, but for the filing of a petition in bankruptcy with respect to such Term Loan Party, would have accrued on any Term Obligation, whether or not a claim is allowed against such Term Loan Party for such interest in the related bankruptcy proceeding), fees, expenses, indemnification or otherwise, payment for early termination of Hedging Agreements, and all other amounts owing or due under the terms of the Term Documents, as amended, restated, modified, renewed, refunded, replaced or refinanced in whole or in part from time to time; provided that the portion of the Term Obligations comprising the aggregate principal amount of outstanding loans in excess of $412,250,000 shall not constitute “Term Obligations”.

 

SECTION 2                               Representations and Warranties of the ABL Agent.  The ABL Agent represents and warrants to the Term Agent that it has the requisite power and authority under the ABL Documents to enter into, execute, deliver, and carry out the terms of this Amendment on behalf of itself and the ABL Lenders and that this Amendment shall be binding obligations of the ABL Agent and the ABL Lenders, enforceable against the ABL Agent and the ABL Lenders in accordance with its terms.

 

SECTION 3                               Representations and Warranties of the Term Agent.  The Term Agent represents and warrants to the ABL Agent that it has the requisite power and authority under the Term Documents to enter into, execute, deliver, and carry out the terms of this Amendment on behalf of itself and the Term Lenders and that this Amendment shall be binding obligations of the Term Agent and the Term Lenders, enforceable against the Term Agent and the Term Lenders in accordance with its terms.

 

SECTION 4                               Miscellaneous.

 

4.1                               Continuing Agreement.  This Amendment is a continuing agreement and shall (a) remain in full force and effect until the ABL Obligations have been paid in full in cash and all commitments to extend credit under the ABL Documents have been terminated and the

 

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Term Obligations shall have been paid in full in cash, (b) be binding upon the Parties and their successors, transferees and assigns, and (c) inure to the benefit of and be enforceable by the Parties and their respective successors, transferees and assigns.

 

4.2                               Severability.  If any of the provisions in this Amendment shall, for any reason, be held invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Amendment and shall not invalidate the Lien Priority or the application of Proceeds and other priorities set forth in the Intercreditor Agreement.

 

4.3                               Counterparts.  This Amendment may be executed in any number of counterparts, and it is not necessary that the signatures of all Parties be contained on any one counterpart hereof, each counterpart will be deemed to be an original, and all together shall constitute one and the same document.  Delivery of an executed signature page to this Amendment by facsimile or other electronic transmission (in .pdf or similar format) shall be as effective as delivery of a manually signed counterpart of this Amendment.  This Amendment shall become effective when it shall have been executed by each party hereto.

 

4.4                               Headings.  The headings of the sections of this Amendment are inserted for purposes of convenience only and shall not be construed to affect the meaning or construction of any of the provisions hereof.

 

4.5                               Governing Law; Entire Agreement.  The validity, performance, and enforcement of this Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.  This Amendment constitutes the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersedes any prior agreements, written or oral, with respect thereto.

 

4.6                               Submission To Jurisdiction; Waivers. Each of the parties hereto hereby irrevocably and unconditionally agrees that Section 7.14 of the Intercreditor Agreement is incorporated herein mutatis mutandis.

 

[Signature pages to follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers on the date and year first above written.

 

 

	
 
    	
JPMORGAN CHASE BANK, N.A.,
    
	
 
    	
in   its capacity as the ABL Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Ray
    
	
 
    	
Name:   
    	
Andrew   Ray
    
	
 
    	
Title:
    	
Authorized   Officer
    

 

SIGNATURE PAGE TO

AMENDMENT NO. 1 TO INTERCREDITOR AGREEMENT —

THE CONTAINER STORE, INC.

 

 

	
 
    	
JPMORGAN CHASE BANK, N.A.,
    
	
 
    	
in   its capacity as the Term Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   David L. Howard
    
	
 
    	
Name:   
    	
David   L. Howard
    
	
 
    	
Title:   
    	
Authorized   Officer
    

 

SIGNATURE PAGE TO

AMENDMENT NO. 1 TO INTERCREDITOR AGREEMENT —

THE CONTAINER STORE, INC.

 

 

	
 
    	
ACKNOWLEDGED   AND AGREED:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE   CONTAINER STORE, INC., as Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jodi Taylor
    
	
 
    	
 
    	
Name:
    	
Jodi   Taylor
    
	
 
    	
 
    	
Title:   
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
TCS   HOLDINGS, INC.,
    
	
 
    	
TCS   GIFT CARD SERVICES, LLC,
    
	
 
    	
TCS   INSTALLATION SERVICES, LLC,
    
	
 
    	
each   as a Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jodi Taylor
    
	
 
    	
 
    	
Name:
    	
Jodi   Taylor
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
					

 

SIGNATURE PAGE TO

AMENDMENT NO. 1 TO INTERCREDITOR AGREEMENT —

THE CONTAINER STORE, INC.Exhibit 10.23

 

ASSUMPTION AGREEMENT

 

THIS ASSUMPTION AGREEMENT (this “Agreement”) is made as of this 2nd day of April, 2014, by and between Container Store Group, Inc., a Delaware corporation (the “Company” and formerly known as TCS Holdings, Inc.) and William A. Tindell III (“Tindell”) and Rufus Tindell LLC, a Texas limited liability company, the sole Manager of which is Tindell (said LLC being hereinafter referred to as “Rufus LLC”).

 

WHEREAS, Tindell is a director and chief executive officer of the Company;

 

WHEREAS, Tindell has agreed to author a book (the “Book”) detailing, among other things, an account of the history of the Company, the principles upon which it was founded and the impact of “conscience capitalism”;

 

WHEREAS, in June, 2012, as an inducement for Tindell to author the Book, TCS Holdings, Inc., agreed to indemnify Tindell (and Rufus LLC) if either was made a party to any lawsuit, action or proceeding, a copy of which indemnification agreement is attached hereto as Attachment A (the “Indemnity Agreement”);

 

WHEREAS, upon publication of the Book, the Company will benefit substantially from the public attention, exposure and publicity about the Company, its successes and its unique business model;

 

WHEREAS, as a further condition to Tindell’s agreement to author the book and to enter into that certain publishing agreement (the “Publishing Agreement”) between Tindell and Rufus LLC and Grand Central Publishing, a division of Hatchette Book Group, Inc. (the “Publisher”), the Company has agreed to specifically assume, directly and unconditionally, any and all potential liabilities to Tindell in connection with the publication of the Book that might or could arise from execution by Tindell of the personal Guaranty contained in the Publishing Agreement (the “Guaranty”) attached hereto as Attachment B; and

 

WHEREAS, but for the Indemnity Agreement and this Agreement, Tindell would not agree to personally execute the Guaranty.

 

NOW, THEREFORE, for and in consideration of the premises, the parties hereto do hereby agree as follows:

 

1.                                      Unconditional Assumption of Liabilities.  To induce Tindell to execute the Guaranty, the Company hereby absolutely and unconditionally agrees to and does hereby assume, unconditionally, specifically and directly, and agrees to pay, any and all liabilities, damages, costs, expenses (including counsel fees), judgments, settlement, penalties or losses of any kind or nature whatsoever which may ever be charged or attempted to be charged against Tindell (“Liabilities”) in connection with the publication of the Book arising from or in any way connected with his execution of, and agreement to be bound under, the Guaranty.  The Company further agrees to pay any and all Liabilities directly to any party entitled thereto and to fully hold harmless Tindell from any out of pocket expense in connection therewith.

 

 

2.                                      Non-Exclusivity.  The rights of Tindell hereunder shall be in addition to any rights that Tindell may have under the Indemnity Agreement or pursuant to any insurance policy or policies providing liability insurance with respect to acts or omissions covered by this Agreement maintained by the Company or under the Company’s governance documents (e.g., Articles of Incorporation, Bylaws, etc.), applicable law, any agreement, a vote of stockholders or a resolution of directors, or otherwise.

 

3.                                      Enforceability.  This Agreement shall be binding upon and inure to the benefit of Tindell, his successors, assigns, spouse,  heirs and personal and legal representatives and be enforceable against the Company and its successors, assigns (including any direct or indirect successor by purchase, merger, consolidation, liquidation or otherwise to all or substantially all of the business and/or assets of the Company.)

 

4.                                      Governing Law; Venue.  This Agreement shall be governed by the law of the State of Delaware without regard to conflicts of laws principles that would result in the application of any law other than the law of the State of Delaware.

 

5.                                      Amendment.  This Agreement may not be amended, modified or supplemented except by a written instrument executed by Tindell and the Company.

 

6.                                      Enforcement; Duration.  The Company expressly confirms and agrees that it has entered into this Agreement on behalf of itself and assumed the obligations imposed on it hereby in order to induce Tindell to author the Book, and the Company acknowledges that Tindell is relying upon this Agreement in authoring the Book.  This Agreement shall continue until and terminate upon the later of: (a) the final termination of all proceedings to which the Tindell may be subject pursuant to his authoring or publication of the Book and/or execution of the Guaranty; or (b) the expiration of all statutes of limitations applicable to possible proceedings to which Tindell may be subject arising out of the authoring or publication of the Book or his execution of the Guaranty.

 

7.                                      Severability.  In the event that any one or more of the provisions contained in this Agreement or any application thereof shall be invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of the remaining provisions of this Agreement and any other application thereof shall not in any way be affected or impaired thereby; provided, that to the extent permitted by applicable law, any invalid, illegal or unenforceable provision may be considered for the purpose of determining the intent of the parties in connection with the other provisions of this Agreement.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

 

	
 
    	
Company:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CONTAINER STORE GROUP, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Melissa Reiff
    
	
 
    	
Name:
    	
Melissa   Reiff
    
	
 
    	
Title:
    	
President &   Chief Operating Officer
    
				

 

 

	
ACKNOWLEDGED:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ William A. “Kip” Tindell III
    	
 
    
	
William A. “Kip” Tindell III
    	
 
    

 

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