Document:

EXHIBIT 10.5

 

THIRD AMENDMENT

THIS THIRD AMENDMENT dated as of December 11, 2013 (this "Amendment") amends the Amended and Restated Credit Agreement dated as of May 25, 2012 (as previously amended, the "Credit Agreement") among Nu Skin Enterprises, Inc. (the "Company"), various financial institutions (the "Lenders") and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the "Administrative Agent").  Capitalized terms defined in the Credit Agreement are, unless otherwise defined herein or the context otherwise requires, used herein as defined therein.

WHEREAS, the Company, the Lenders and the Administrative Agent have entered into the Credit Agreement; and

WHEREAS, the parties hereto desire to amend the Credit Agreement as set forth herein;

NOW, THEREFORE, the parties hereto agree as follows:

            SECTION 1  Amendment.  Subject to the satisfaction of the conditions precedent set forth in Section 3, the definition of "EBITDA" contained in Section 1.1 of the Credit Agreement is amended in its entirety to read as follows:

EBITDA means, with respect to any period, the sum of (i) Consolidated Net Income for such period without giving effect to extraordinary gains and losses, gains and losses resulting from changes in GAAP or one-time non-recurring income and expenses resulting from acquisitions, plus (ii) to the extent deducted in the calculation of Consolidated Net Income, the amount of all interest expense, depreciation expense, amortization expense, income tax expense and non-cash stock-based compensation expense; provided that EBITDA will include or exclude, as applicable, acquisitions and divestitures of Restricted Subsidiaries or other business units on a pro forma basis as if such acquisitions or divestitures occurred on the first day of the applicable period.

SECTION 2                          Warranties.  The Company represents and warrants to the Administrative Agent and the Lenders that (a) each warranty set forth in Section 9 of the Credit Agreement is true and correct in all material respects as of the date of the execution and delivery of this Amendment by the Company, with the same effect as if made on such date (except to the extent any such warranty expressly relates to a specific earlier date, in which case such warranty was true and correct in all material respects as of such earlier date), (b) after giving effect to this amendment, no Event of Default or Unmatured Event of Default exists and (c) the Credit Agreement as amended hereby constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally, and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

SECTION 3                                          Effectiveness.  The amendment set forth in Section 1 above shall become effective on the date (the "Effective Date") when the Administrative Agent has received (i) counterparts of this Amendment executed by the Company and the Required Lenders and (ii) a fully executed and effective amendment to the Senior Note Purchase Agreement and any other Material Credit Facility (if any) which provides for an amendment thereto which is substantially identical to the amendment provided herein; provided that no such amendment need be provided for any Material Credit Facility if similar language is already included in such other Material Credit Facility.

 

 

 

SECTION 4                          Miscellaneous.

4.1            Continuing Effectiveness, etc.  As herein amended, the Credit Agreement shall remain in full force and effect and is hereby ratified and confirmed in all respects.  After the effectiveness of this Amendment, all references in the Credit Agreement and the other Loan Documents to "Credit Agreement" or similar terms shall refer to the Credit Agreement as amended hereby.

4.2            Counterparts.  This Amendment may be executed in any number of counterparts and by the different parties on separate counterparts, and each such counterpart shall be deemed to be an original but all such counterparts shall together constitute one and the same Amendment.  Delivery to the Administrative Agent of a counterpart hereof, or a signature page hereto, by facsimile or by email in .pdf or similar format shall be effective as an original, manually-signed counterpart.

4.3            Governing Law.  This Amendment shall be a contract made under and governed by the internal laws of the State of New York, without regard to conflict of laws principles.

4.4            Successors and Assigns.  This Amendment shall be binding upon the Company, the Lenders and the Administrative Agent and their respective successors and assigns, and shall inure to the benefit of the Company, the Lenders and the Administrative Agent and the respective successors and assigns of the Lenders and the Administrative Agent.

 

 

 

 

 

Delivered as of the day and year first above written.

NU SKIN ENTERPRISES, INC.

By /s/ Brian Lords                                                                                                  

Title Treasurer                                                                                                  

JPMORGAN CHASE BANK, N.A., as Administrative Agent and as a Lender

By /s/ Illegible                                                                                                  

Title Authorized OfficerEXHIBIT 10.7

 

FIRST AMENDMENT TO NOTE AGREEMENT

THIS FIRST AMENDMENT, dated as of August 7, 2012 (this "First Amendment"), to the Amended and Restated Note Purchase and Private Shelf Agreement, dated as of May 25, 2012 (as amended or otherwise modified to date, the "Note Agreement"), is between Nu Skin Enterprises, Inc., a Delaware corporation (the "Company"), on the one hand, and Prudential Investment Management, Inc. and each of the holders of Notes appearing on the signature pages hereto (collectively "Prudential"), on the other hand.

RECITALS

A.            Pursuant to the request of the Company, the Company and Prudential now desire to amend the Note Agreement in the respects, but only in the respects, hereinafter set forth.

B.            Capitalized terms used herein shall have the respective meanings ascribed thereto in the Note Agreement unless herein defined or the context shall otherwise require.

C.            All requirements of law have been fully complied with and all other acts and things necessary to make this First Amendment a valid, legal and binding instrument according to its terms for the purposes herein expressed have been done or performed.

NOW, THEREFORE, upon the full and complete satisfaction of the conditions precedent to the effectiveness of this First Amendment set forth in Section 3 hereof, and in consideration of good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Company and Prudential do hereby agree as follows:

	
Section 1

	
Amendments to Note Agreement.

 

1.1            Section 10.4 of the Note Agreement is hereby amended and restated to read as follows:

 

		10.4	Minimum Consolidated Net Worth.

The Company will not, at any time, permit Consolidated Net Worth to be less than $450,000,000.

1.2            Section 10.10 of the Note Agreement is hereby amended and restated to read as follows:

 

10.10            Limitation on Restricted Payments.

The Company will not, and will not permit any Restricted Subsidiary to, at any time declare or make, or become required to declare or make, any Restricted Payment, unless after giving effect thereto, the aggregate amount of all Restricted Payments declared or made after June 30, 2012 does not exceed the sum of (a) $100,000,000, plus (b) 100% of (x) the aggregate amount of Cash Flow from Operations for the period commencing on July 1, 2012 and terminating at the end of the last fiscal quarter immediately preceding the date of any proposed Restricted Payment minus (y) the aggregate amount of all Capital Expenditures during such period and (ii) no Default or Event of Default exists or would exist after giving effect to such Restricted Payment.

 

 

 

 

1.3            Schedule A of the Note Agreement is hereby amended by inserting therein, in the proper alphabetical, order the following addition defined terms, as follows:

 

"Capital Expenditures" means all expenditures which, in accordance with GAAP, would be required to be capitalized and shown on the consolidated balance sheet of the Company, including expenditures in respect of Capital Leases.

"Cash Flow from Operations" means the consolidated cash flow from operations of the Company and its Restricted Subsidiaries as determined in accordance with GAAP.

"Restricted Payment" means any of the following:

(a)            any declaration or payment of dividends, either in cash or property, on any shares of capital stock of any class of the Company or any Restricted Subsidiary (except (i) dividends or other distributions payable solely in shares of common stock, and (ii) dividends and distributions paid by a Restricted Subsidiary solely to the Company or a Wholly-Owned Restricted Subsidiary); or

(b)            any purchase, redemption or retirement, either directly or indirectly, or through any Restricted Subsidiary, of shares of capital stock of any class of the Company or any Restricted Subsidiary or any warrants, rights or options to purchase or acquire any shares of capital stock of the Company or any Restricted Subsidiary; or

(c)            any payment or distribution, either directly or indirectly or through any Restricted Subsidiary, in respect of capital stock of any class of the Company or any Restricted Subsidiary (except payments and distributions made by a Restricted Subsidiary solely to the Company or a Wholly-Owned Restricted Subsidiary).

	
Section 2

	
Representations and Warranties and Covenants of the Company.

 

2.1            To induce Prudential to execute and deliver this First Amendment (which representations shall survive the execution and delivery of this First Amendment), the Company represents and warrants to Prudential that:

 

	
(a)

	
this First Amendment has been duly authorized, executed and delivered by it and this First Amendment constitutes the legal, valid and binding obligation, contract and agreement of the Company, enforceable against it in accordance with its terms, except as enforcement may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or limiting creditors' rights generally, and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law);

 

	
(b)

	
the Note Agreement, as amended by this First Amendment, constitutes the legal, valid and binding obligation, contract and agreement of the Company, enforceable against it in accordance with its terms, except as enforcement may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or limiting creditors' rights generally, and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law);

 

		
 

	
 

	

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(c)

	
the execution, delivery and performance by the Company of this First Amendment (i) has been duly authorized by all requisite corporate action and, if required, shareholder action, (ii) does not require the consent or approval of any governmental or regulatory body or agency, and (iii) will not (A) violate (1) any provision of law, statute, rule or regulation or its certificate of incorporation or bylaws, (2) any order of any court or any rule, regulation or order of any other agency or government binding upon it, or (3) any provision of any material indenture, agreement or other instrument to which it is a party or by which its properties or assets are or may be bound, or (B) result in a breach or constitute (alone or with due notice or lapse or both) a default under any indenture, agreement or other instrument referred to in clause (iii)(A)(3) of this Section 2.1(c); and

	
(d)

	
as of the date hereof and after giving effect to this First Amendment, no Default or Event of Default has occurred which is continuing.

 

2.2            The Company agrees that it shall promptly pay the reasonable fees and expenses of Bingham McCutchen LLP in connection with the negotiation, preparation, approval, execution and delivery of this First Amendment.

 

	
Section 3

	
Conditions to Effectiveness of This Agreement.

 

This First Amendment shall become effective as of the opening of business on the date hereof (the "First Amendment Effective Date") upon (a) the delivery to Prudential of executed counterparts of this First Amendment, duly executed by the Company and the Required Holders, and (b) the delivery to Prudential of a fully executed and effective amendment to the Company's Bank Credit Agreement and any other Material Credit Facility (if any) which provides for amendments thereto which are substantially identical to those provided herein.

	
Section 4

	
Miscellaneous.

 

4.1            This First Amendment may be executed in any number of counterparts, each counterpart constituting an original, but all together only one agreement.  Delivery of executed counterparts of this First Amendment by telefacsimile or other secure electronic format (pdf) shall be effective as an original.

 

4.2            The amendments, limited waiver and other modifications set forth in this First Amendment shall be limited precisely as written and shall not be deemed to be (a) an amendment, consent or waiver of any other terms or conditions of the Note Agreement or any other document related to the Note Agreement, or (b) a consent to any future amendment, consent or waiver.  Except as expressly set forth in this letter, the Note Agreement and the other Transaction Documents shall continue in full force and effect.

 

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4.3            This First Amendment shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the internal laws of the State of New York, excluding choice-of-law principles of the law of such state that would require the application of the laws of a jurisdiction other than such state.

 

 

[Signature pages follow.]

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.

NU SKIN ENTERPRISES, INC.

 

By:  /s/ Ritch Wood                                                                                    

Name: Ritch Wood

Its:  Chief Financial Officer

PRUDENTIAL INVESTMENT MANAGEMENT, INC.

 

By:  /s/ David Levine  

Its:  Vice President

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

 

By:    /s/ David Levine  

Its:  Vice President

PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY

 

By:            Prudential Investment Management,

Inc., as investment manager

 

By:    /s/ David Levine  

Its:  Vice President

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

 

By:    /s/ David Levine  

Its:  Vice President

PRUCO LIFE INSURANCE COMPANY

 

By:    /s/ David Levine  

Its:  Vice President

MTL INSURANCE COMPANY

By:            Prudential Private Placement   Investors, L.P., as investment advisor

By:            Prudential Private Placement   Investors, Inc., as its general partner

 

By:    /s/ David Levine  

Its:  Vice President

GIBRALTAR LIFE INSURANCE CO., LTD.

By:            Prudential Investment Management  (Japan), as investment manager

By:            Prudential Investment Management,  Inc., as sub-adviser

 

By:  /s/ David Levine  

Its:  Vice President

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