Document:

Exhibit 4.1

 

 

  REGISTRATION RIGHTS AGREEMENT

 

 by and among

 

  Fifth & Pacific Companies, Inc. 
 the Guarantors Listed on Schedule I hereto

 

 and

 

  Merrill Lynch, Pierce, Fenner & Smith Incorporated

 

as representative of the several Initial Purchasers

 

 

 

 

Dated as of June 8, 2012

 

 

REGISTRATION RIGHTS AGREEMENT

 

 

This Registration Rights Agreement (this “Agreement”) is made and entered into as of June 8, 2012, by and among Fifth & Pacific Companies, Inc., a Delaware corporation (the “Company”), the guarantors listed on Schedule I hereto (collectively, the “Guarantors”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representative of the several initial purchasers (collectively, the “Initial Purchasers”), each of whom has agreed to purchase the Company’s 10.50% Senior Secured Notes due 2019 (the “Initial Notes”) fully and unconditionally guaranteed by the Guarantors (the “Guarantees”) pursuant to the Purchase Agreement (as defined below).  The Initial Notes and the Guarantees attached thereto are herein collectively referred to as the “Initial Securities.”

 

This Agreement is made pursuant to the Purchase Agreement, dated June 6, 2012 (the “Purchase Agreement”), by and among the Company, the Guarantors and the Initial Purchasers (i) for the benefit of the Initial Purchasers and (ii) for the benefit of the holders from time to time of Initial Securities, including the Initial Purchasers.  In order to induce the Initial Purchasers to purchase the Initial Securities, the Company has agreed to provide the registration rights set forth in this Agreement.  The execution and delivery of this Agreement is a condition to the obligations of the Initial Purchasers set forth in Section 5(f) of the Purchase Agreement.  Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the Indenture, dated as of April 7, 2011 (as amended or supplemented from time to time, the “Indenture”), by and among the Company, the Guarantors and U.S. Bank National Association, as trustee (the “Trustee”), relating to the Initial Notes and the Exchange Notes (as defined below).

 

The parties hereby agree as follows:

 

SECTION 1.             Definitions.  As used in this Agreement, the following capitalized terms shall have the following meanings:

 

Additional Interest: As defined in Section 5 hereof.

 

Advice: As defined in Section 6(d) hereof.

 

Affiliate:  As defined in Rule 144.

 

Broker-Dealer:  Any broker or dealer registered under the Exchange Act.

 

Business Day:  Any day other than a Saturday, Sunday or U.S. federal holiday or a day on which banking institutions or trust companies located in New York, New York are authorized or obligated to be closed.  If the time to perform any action hereunder falls on a day that is not a Business Day, such time will be extended to the next Business Day and no Additional Interest shall accrue for the intervening period.

 

Closing Date:  The date of this Agreement.

 

Commission:  The Securities and Exchange Commission.

 

 

Consummate:  An Exchange Offer shall be deemed “Consummated” for purposes of this Agreement upon the occurrence of (i) the filing and effectiveness under the Securities Act of the Exchange Offer Registration Statement relating to the Exchange Securities to be issued in the Exchange Offer, (ii) the maintenance of such Exchange Offer Registration Statement continuously effective and the keeping of the Exchange Offer open for a period not less than the minimum period required pursuant to Section 3(b) hereof, and (iii) the delivery by the Company to the Registrar under the Indenture of Exchange Securities in the same aggregate principal amount as the aggregate principal amount of Initial Securities that were validly tendered (and not withdrawn) by Holders thereof pursuant to the Exchange Offer.

 

Exchange Act:  The Securities Exchange Act of 1934, as amended.

 

Exchange Date:  As defined in Section 3(a) hereto.

 

Exchange Offer:  The registration by the Company under the Securities Act of the issuance of the Exchange Securities pursuant to a Registration Statement pursuant to which the Company offers the Holders of all outstanding Transfer Restricted Securities the opportunity to exchange all such outstanding Transfer Restricted Securities held by such Holders for Exchange Securities in an aggregate principal amount equal to the aggregate principal amount of the Transfer Restricted Securities tendered in such exchange offer by such Holders.

 

Exchange Offer Registration Statement:  The Registration Statement relating to the Exchange Offer, including the related Prospectus.

 

Exchange Securities or Exchange Notes:  The 10.50% Senior Secured Notes due 2019, of the same series under the Indenture as the Initial Notes and the Guarantees attached thereto, to be issued to Holders in exchange for Transfer Restricted Securities pursuant to this Agreement.

 

Existing Registration Rights Agreement: The Registration Rights Agreement, dated as of April 7, 2011 by and among the Company, the Guarantors party thereto and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representative of the several initial purchasers.

 

Existing Securities: The $220,000,000 aggregate principal amount of 10.50% Senior Secured Notes due 2019 and the related guarantees thereof issued by the Company and the Guarantors on April 7, 2011 under the Indenture.

 

FINRA:  Financial Industry Regulatory Authority, Inc.

 

Holders:  As defined in Section 2(b) hereof.

 

Indemnified Holder:  As defined in Section 8(a) hereof.

 

Indenture:  As defined in the preamble hereto.

 

Initial Notes:  As defined in the preamble hereto.

 

Initial Placement:  The issuance and sale by the Company of the Initial Securities to the Initial Purchasers pursuant to the Purchase Agreement.

 

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Initial Purchasers:  As defined in the preamble hereto.

 

Initial Securities:  As defined in the preamble hereto.

 

Interest Payment Date:  As defined in the Indenture and the Securities.

 

Original Exchange Securities: shall mean the 10.50% Senior Secured Notes due 2019 and the related guarantees therto, of the same series under the Indenture as the Existing Securities without restrictive legends or transfer restrictions, that will be issued to Holders of the Existing Securities in an exchange offer pursuant to the Existing Registration Rights Agreement.

 

Person:  An individual, partnership, corporation, trust or unincorporated organization, or a government or agency or political subdivision thereof.

 

Prospectus:  The prospectus included in a Registration Statement, as amended or supplemented by any prospectus supplement and by all other amendments thereto, including post-effective amendments, and all material incorporated by reference into such Prospectus.

 

Registration Default:  As defined in Section 5 hereof.

 

Registration Statement:  Any registration statement of the Company and the Guarantors relating to (a) an offering of Exchange Securities pursuant to an Exchange Offer or (b) the registration for resale of Transfer Restricted Securities pursuant to the Shelf Registration Statement, in each case, (i) that is filed pursuant to the provisions of this Agreement, (ii) including the Prospectus included therein, and (iii) including all amendments and supplements thereto (including post-effective amendments) and all exhibits and material incorporated by reference therein.

 

Rule 144:  Rule 144 promulgated under the Securities Act.

 

Securities:  The Initial Securities and/or the Exchange Securities, as applicable.

 

Securities Act:  The Securities Act of 1933, as amended.

 

Shelf Effectiveness Deadline:  As defined in Section 4(a) hereof.

 

Shelf Registration Statement:  As defined in Section 4(a) hereof.

 

Transfer Restricted Securities:  The Initial Securities; provided that the Initial Securities shall cease to be Transfer Restricted Securities on the earliest to occur of (i) the date on which a Registration Statement with respect to such Initial Securities has become effective under the Securities Act and such Initial Securities have been exchanged or disposed of pursuant to such Registration Statement or (ii) the date on which such Initial Securities cease to be outstanding.

 

Transfer Restricted Existing Securities:  The Existing Securities; provided that the Existing Securities shall cease to be Transfer Restricted Existing Securities on the earliest to occur of (i) the date on which a Registration Statement (as defined in the Existing Registration Rights Agreement) with respect to such Existing Securities has become effective under the Securities

 

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Act and such Existing Securities have been exchanged or disposed of pursuant to such Registration Statement or (ii) the date on which such Existing Securities cease to be outstanding.

 

Trust Indenture Act:  The Trust Indenture Act of 1939, as amended.

 

Underwritten Registration or Underwritten Offering:  A registration in which securities of the Company are sold to an underwriter for reoffering to the public.

 

SECTION 2.             Securities Subject to this Agreement.

 

(a)                               Transfer Restricted Securities.  The securities entitled to the benefits of this Agreement are the Transfer Restricted Securities.

 

(b)                              Holders of Transfer Restricted Securities.  A Person is deemed to be a holder of Transfer Restricted Securities (each, a “Holder”) whenever such Person owns Transfer Restricted Securities.

 

SECTION 3.             Registered Exchange Offer.

 

(a)                               Unless the Exchange Offer shall not be permissible under applicable law or Commission policy (after the procedures set forth in Section 6(a)(i) hereof have been complied with), or there are no Transfer Restricted Securities outstanding, the Company and the Guarantors shall (i) cause the Exchange Offer Registration Statement to be filed with the Commission, (ii) use their reasonable best efforts to cause such Exchange Offer Registration Statement to (x) include the Exchange Offer (as required under the Existing Registration Rights Agreement) with respect to the Existing Securities (the “Existing Exchange Offer”) or to include the Transfer Restricted Securities in any Exchange Offer Registration Statement (as defined in the Existing Registration Rights Agreement) with respect to the Existing Exchange Offer, as provided in Section 6(c)(xxi) and (y) become effective, (iii) in connection with the foregoing, use reasonable best efforts to  (A) file all pre-effective amendments to such Exchange Offer Registration Statement as may be necessary in order to cause it to become effective, (B) file, if applicable, a post-effective amendment to such Exchange Offer Registration Statement pursuant to Rule 430A under the Securities Act and (C) cause all necessary filings, if any, in connection with the registration and qualification of the Exchange Securities to be made under the state securities or blue sky laws of such jurisdictions as are necessary to permit Consummation of the Exchange Offer, provided, however, that neither the Company nor any Guarantor shall be required to take any action that would subject them to general service of process or taxation in any jurisdiction where they are not already subject,  and (iv) upon the effectiveness of such Exchange Offer Registration Statement, commence the Exchange Offer. Each of the Company and the Guarantors shall use their reasonable best efforts to Consummate the Exchange Offer not later than October 15, 2012 (the “Exchange Date”).  The Exchange Offer, if required pursuant to this Section 3(a), shall be on the appropriate form permitting registration of the Exchange Securities to be offered in exchange for the Transfer Restricted Securities and to permit resales of Initial Securities held by Broker-Dealers as contemplated by Section 3(c) hereof.  For the avoidance of doubt, the Exchange Offer may be registered pursuant to an Exchange Offer Registration Statement (as defined in the Existing Registration Rights Agreement) with respect to the Existing Exchange Offer, and such

 

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Exchange Offer Registration Statement shall be treated as an Exchange Offer Registration Statement for purposes of this Agreement.

 

(b)                              If an Exchange Offer Registration Statement is required to be filed and declared effective pursuant to Section 3(a) above, the Company and the Guarantors shall use reasonable best efforts to  cause the Exchange Offer Registration Statement to be effective continuously, and shall keep the Exchange Offer open for a period of not less than the minimum period required under applicable federal and state securities laws to Consummate the Exchange Offer; provided, however, that in no event shall such period be less than 20 Business Days after the date notice of the Exchange Offer is mailed to the Holders.  The Company shall cause the Exchange Offer to comply with all applicable federal and state securities laws.  No securities other than the Exchange Securities and the Original Exchange Securities shall be included in the Exchange Offer Registration Statement.

 

(c)                               The Company shall indicate in a “Plan of Distribution” section contained in the Prospectus forming a part of the Exchange Offer Registration Statement that any Broker-Dealer who holds Transfer Restricted Securities that were acquired for its own account as a result of market-making activities or other trading activities (other than Initial Securities acquired directly from the Company), may exchange such Transfer Restricted Securities pursuant to the Exchange Offer.  Such “Plan of Distribution” section shall also contain all other information with respect to such resales by Broker-Dealers that the Commission may require in order to permit such resales pursuant thereto, but such “Plan of Distribution” shall not name any such Broker-Dealer or disclose the amount of Transfer Restricted Securities held by any such Broker-Dealer except to the extent required by the Commission as a result of a change in policy after the date of this Agreement.

 

Because such Broker-Dealer may be deemed to be an “underwriter” within the meaning of the Securities Act and must, therefore, deliver a prospectus meeting the requirements of the Securities Act in connection with resales of any Exchange Securities received by such Broker-Dealer in the Exchange Offer, the Company and the Guarantors shall permit the use of the Prospectus contained in the Exchange Offer Registration Statement by such Broker-Dealer to satisfy such  prospectus delivery requirement.  The Company and the Guarantors shall use their reasonable best efforts to keep the Exchange Offer Registration Statement continuously effective, supplemented and amended as required by the provisions of Section 6(c) hereof to the extent necessary to ensure that it is available for resales of Transfer Restricted Securities acquired by Broker-Dealers for their own accounts as a result of market-making activities or other trading activities, and to ensure that it conforms with the requirements of this Agreement, the Securities Act and the policies, rules and regulations of the Commission as announced from time to time, for a period ending on the earlier of (i) 180 days from the date on which the Exchange Offer Registration Statement is declared effective and (ii) the date on which a Broker-Dealer is no longer required to deliver a prospectus in connection with market-making or other trading activities.

 

Upon request, the Company shall provide sufficient copies of the latest version of such Prospectus to such Broker-Dealers within five Business Days after such request  at any time during such 180-day (or shorter, as provided in the foregoing sentence) period in order to facilitate such resales.

 

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SECTION 4.             Shelf Registration.

 

(a)                               Shelf Registration.  If (i) the Company and the Guarantors are not required to file an Exchange Offer Registration Statement or to Consummate the Exchange Offer solely because the Exchange Offer is not permitted by applicable law or Commission policy (after the procedures set forth in Section 6(a)(i) hereof have been complied with), (ii) for any reason the Exchange Offer is not Consummated by the Exchange Date, or (iii) prior to the Exchange Date, (A) the Initial Purchasers request from the Company with respect to Transfer Restricted Securities not eligible to be exchanged for Exchange Securities in the Exchange Offer or (B) any Holder of Transfer Restricted Securities notifies the Company that (1) such Holder is prohibited by applicable law or Commission policy from participating in the Exchange Offer, (2) such Holder may not resell the Exchange Securities acquired by it in the Exchange Offer to the public without delivering a prospectus and that the Prospectus contained in the Exchange Offer Registration Statement is not appropriate or available for such resales by such Holder, or (3) such Holder is a Broker-Dealer and holds Transfer Restricted Securities acquired directly from the Company or one of its Affiliates, then the Company and the Guarantors shall use their reasonable best efforts to cause to be filed and declared effective a shelf registration statement pursuant to Rule 415 under the Securities Act, which may be an amendment to the Exchange Offer Registration Statement (in either event, the “Shelf Registration Statement”) on or prior to the 90th day after the date such obligation arises pursuant to this clause (such date being the “Shelf Effectiveness Deadline”), which Shelf Registration Statement shall provide for resales of all Transfer Restricted Securities the Holders of which shall have provided the information required pursuant to Section 4(b) hereof.

 

Each of the Company and the Guarantors shall use their reasonable best efforts to keep such Shelf Registration Statement continuously effective, supplemented and amended as required by the provisions of Sections 6(b) and (c) hereof to the extent necessary to ensure that it is available for resales of Transfer Restricted Securities by the Holders of such Securities entitled to the benefit of this Section 4(a), and to ensure that it conforms with the requirements of this Agreement in all material respect, the Securities Act and the policies, rules and regulations of the Commission as announced from time to time, from the date on which the Shelf Registration Statement is declared effective by the Commission until the expiration of the one-year period referred to in Rule 144 applicable to securities held by non-affiliates under the Securities Act (or shorter period that will terminate when all the Transfer Restricted Securities covered by such Shelf Registration Statement have been sold pursuant to such Shelf Registration Statement).

 

(b)                              Provision by Holders of Certain Information in Connection with the Shelf Registration Statement.  No Holder of Transfer Restricted Securities may include any of its Transfer Restricted Securities in any Shelf Registration Statement pursuant to this Agreement unless and until such Holder furnishes to the Company in writing, within 20 Business Days after receipt of a request therefor, such information as required by Regulation S-K of the Securities Act or, reasonably requested by the Company for use in connection with any Shelf Registration Statement or Prospectus or preliminary Prospectus included therein.  No Holder shall be entitled to Additional Interest pursuant to Section 5 hereof unless and until (and from and after such time) such Holder shall have provided all such information.  Each Holder as to which any Shelf Registration Statement is being effected agrees to furnish promptly to the Company all information required to be disclosed in order to make the information previously furnished to the Company by such

 

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Holder not materially misleading and shall promptly supply such other information as the Company may from time to time reasonably request.

 

SECTION 5.             Additional Interest.  If (i) the Exchange Offer has not been Consummated by the Exchange Date, (ii) the Existing Exchange Offer has not been Consummated by the Exchange Date, (iii) any Shelf Registration Statement, if required hereby, has not been declared effective by the Commission by the Shelf Effectiveness Deadline or (iv) any Registration Statement required by this Agreement has been declared effective but ceases to be effective or otherwise available at any time for more than 60 calendar days in a twelve month period during which it is required to be effective under this Agreement (each such event referred to in clauses (i) through (iv), a “Registration Default”), the Company hereby agrees that the interest rate borne by the Transfer Restricted Securities shall be increased by 0.25% per annum during the 90-day period immediately following the occurrence of any Registration Default and shall increase by 0.25% per annum at the end of each subsequent 90-day period (such increase, “Additional Interest”), but in no event shall such increase exceed 1.00% per annum on the principal amount of Transfer Restricted Securities; provided that the Company and the Guarantors shall in no event be required to pay Additional Interest for more than one Registration Default at any given time.  At the cure of all Registration Defaults relating to the particular Transfer Restricted Securities, the interest rate borne by the relevant Transfer Restricted Securities will be reduced to the original interest rate borne by such Transfer Restricted Securities.

 

All accrued Additional Interest shall be paid by the Company and the Guarantors (or the Company and the Guarantors will cause the Paying Agent to make such payment on their behalf) to the Holders entitled thereto, in the manner provided for the payment of interest in the Indenture, on each Interest Payment Date, as more fully set forth in the Indenture, the Initial Notes and the Exchange Notes.  All obligations of the Company and the Guarantors set forth in the preceding paragraph that are outstanding with respect to any Transfer Restricted Security at the time such security ceases to be a Transfer Restricted Security shall survive until such time as all such obligations with respect to such security shall have been satisfied in full.

 

SECTION 6.             Registration Procedures.

 

(a)                               Exchange Offer Registration Statement.  In connection with the Exchange Offer, if required pursuant to Section 3(a) hereof, the Company and the Guarantors shall comply with all of the provisions of Section 6(c) hereof, shall use their reasonable best efforts to effect such exchange to permit the sale of Transfer Restricted Securities being sold in accordance with the intended method or methods of distribution thereof, and shall comply with all of the following provisions:

 

(i)                                   If in the reasonable opinion of counsel to the Company there is a question as to whether the Exchange Offer is permitted by applicable law, each of the Company and the Guarantors hereby agrees to use their reasonable best efforts to seek a no-action letter or other favorable decision from the Commission allowing the Company and the Guarantors to Consummate an Exchange Offer for such Transfer Restricted Securities.  Each of the Company and the Guarantors hereby agrees to pursue the issuance of such a decision to the Commission staff level but shall not be required to take commercially unreasonable action to effect a change of Commission policy.  In connection with the

 

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foregoing,  each of the Company and the Guarantors hereby agrees, however, to (A) participate in telephonic conferences with the Commission, (B) deliver to the Commission staff an analysis prepared by counsel to the Company setting forth the legal bases, if any, upon which such counsel has concluded that such an Exchange Offer should be permitted and (C) diligently pursue a resolution (which need not be favorable and which need not be a written resolution) by the Commission staff of such submission.

 

(ii)                                As a condition to its participation in the Exchange Offer pursuant to the terms of this Agreement, each Holder of Transfer Restricted Securities (including, without limitation, any Holder who is a Broker-Dealer)  shall furnish, upon the request of the Company, prior to the Consummation of the Exchange Offer, a written representation to the Company and the Guarantors (which may be contained in the letter of transmittal contemplated by the Exchange Offer Registration Statement) to the effect that (A) it is not an Affiliate of the Company, (B) it is not engaged in, and does not intend to engage in, and has no arrangement or understanding with any Person to participate in, a distribution of the Exchange Securities to be issued in the Exchange Offer, (C) it is acquiring the Exchange Securities in its ordinary course of business, and (D) only if such Holder is a Broker-Dealer that will receive Exchange Securities in exchange for Initial Securities that such Broker-Dealer acquired for its own private account as a result of market making or other trading activities, it will deliver a Prospectus, as required by law, in connection with any sale of such Exchange Securities.  In addition, all such Holders of Transfer Restricted Securities shall otherwise cooperate in the Company’s preparations for the Exchange Offer.  As a condition to its participation in the Exchange Offer, each Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder using the Exchange Offer to participate in a distribution of the securities to be acquired in the Exchange Offer (1) could not, under Commission policy as in effect on the date of this Agreement, rely on the position of the Commission enunciated in Morgan Stanley and Co., Inc. (available June 5, 1991) and Exxon Capital Holdings Corporation (available May 13, 1988), as interpreted in the Commission’s letter to Shearman & Sterling dated July 2, 1993, and similar no-action letters (which may include any no-action letter obtained pursuant to clause (i) above), and (2) must comply with the registration and prospectus delivery requirements of the Securities Act in connection with a secondary resale transaction and that such a secondary resale transaction should be covered by an effective registration statement containing the selling security holder information required by Item 507 or 508, as applicable, of Regulation S-K if the resales are of Exchange Securities obtained by such Holder in exchange for Transfer Restricted Securities acquired by such Holder directly from the Company.

 

(b)                              Shelf Registration Statement.  If required pursuant to Section 4, in connection with the Shelf Registration Statement, each of the Company and the Guarantors shall comply with all the provisions of Section 6(c) hereof and shall use their reasonable best efforts to effect such registration to permit the sale of the Transfer Restricted Securities being sold in accordance with the intended method or methods of distribution thereof, and pursuant thereto each of the Company and the Guarantors will as expeditiously as possible prepare and file with the Commission a Registration Statement relating to the registration on any appropriate form under the Securities Act, which form shall be available for the sale of the Transfer Restricted Securities in accordance with the intended method or methods of distribution thereof.

 

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(c)                               General Provisions.  In connection with any Registration Statement and any Prospectus required by this Agreement to permit the sale or resale of Transfer Restricted Securities (including, without limitation, any Registration Statement and the related Prospectus required to permit resales of Transfer Restricted Securities by Broker-Dealers), each of the Company and the Guarantors shall:

 

(i)                                   use their reasonable best efforts to keep such Registration Statement continuously effective and provide all requisite financial statements (including, if required by the Securities Act or any regulation thereunder, financial statements of the Guarantors) for the period specified in Section 3 or 4 hereof, as applicable; upon the occurrence of any event that would cause any such Registration Statement or the Prospectus contained therein (A) to contain a material misstatement or omission or (B) not to be effective and usable for resale of Transfer Restricted Securities during the period required by this Agreement, the Company shall file promptly an appropriate amendment to such Registration Statement, in the case of clause (A), correcting any such misstatement or omission, and, if Commission review is required, use their reasonable best efforts to cause such amendment to be declared effective and such Registration Statement and the related Prospectus to become usable for their intended purpose(s) as soon as practicable thereafter;

 

(ii)                                use their reasonable best efforts to prepare and file with the Commission such amendments and post-effective amendments to the applicable Registration Statement as may be necessary to keep the Registration Statement effective for the applicable period set forth in Section 3 or 4 hereof, as applicable, or such shorter period as will terminate when all Transfer Restricted Securities covered by such Registration Statement have been sold; cause the Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the Securities Act, and to comply fully with the applicable provisions of Rules 424 and 430A under the Securities Act in a timely manner; and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement during the applicable period in accordance with the intended method or methods of distribution by the sellers thereof set forth in such Registration Statement or supplement to the Prospectus;

 

(iii)                             advise each Holder whose Transfer Restricted Securities have been included in a Shelf Registration Statement, (A) when the Prospectus or any Prospectus supplement or post-effective amendment has been filed, and, with respect to any Registration Statement or any post-effective amendment thereto, when the same has become effective, (B) of any request by the Commission for amendments to the Registration Statement or amendments or supplements to the Prospectus or for additional information relating thereto, (C) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement under the Securities Act or of the suspension by any state securities commission of the qualification of the Transfer Restricted Securities for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the preceding purposes, (D) of the happening of any event that makes any statement of a material fact made in the Registration Statement, the Prospectus, any amendment or supplement thereto, or any document incorporated by reference therein untrue, or that requires the

 

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making of any additions to or changes in the Registration Statement or the Prospectus in order to make the statements therein not misleading.  If at any time the Commission shall issue any stop order suspending the effectiveness of the Registration Statement, or any state securities commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of the Transfer Restricted Securities under state securities or blue sky laws, each of the Company and the Guarantors shall use their reasonable best efforts to obtain the withdrawal or lifting of such order at the earliest possible time;

 

(iv)                            in the case of a Shelf Registration Statement, furnish without charge, upon request, to each selling Holder named in any Registration Statement, and each of the underwriter(s), if any, before filing with the Commission, copies of any Registration Statement or any Prospectus included therein or any amendments or supplements to any such Registration Statement or Prospectus (including all documents incorporated by reference after the initial filing of such Registration Statement), which documents will be subject to the review and comment of such Holders and underwriter(s) in connection with such sale, if any, for a period of at least three Business Days, and the Company will not file any such Registration Statement or Prospectus or any amendment or supplement to any such Registration Statement or Prospectus (including all such documents incorporated by reference) to which a Holder of Transfer Restricted Securities covered by such Registration Statement or the underwriter(s), if any, shall reasonably object in writing within three Business Days after the receipt thereof (such objection to be deemed timely made upon confirmation of telecopy transmission within such period).  The objection of an Initial Purchaser or underwriter, if any, shall be deemed to be reasonable if such Registration Statement, amendment, Prospectus or supplement, as applicable, as proposed to be filed, contains a material misstatement or omission.  Notwithstanding the foregoing, the Company shall not be required to take any actions under this Section 6(c)(iv) that are not, in the reasonable opinion of counsel for the Company, in compliance with applicable law;

 

(v)                               in the case of a Shelf Registration Statement, promptly prior to the filing of any document that is to be incorporated by reference into a Registration Statement or Prospectus in connection with such registration or sale, if any, provide copies of such document to each selling Holder named in the Registration Statement in connection with such exchange, registration or sale, if any, and to the underwriter(s), if any, make the Company’s and the Guarantors’ representatives available for discussion of such document and other customary due diligence matters subject to execution and delivery of customary confidentiality agreements, and include such information in such document prior to the filing thereof as such selling Holders or underwriter(s), if any, reasonably may request;

 

(vi)                            in the case of a Shelf Registration Statement, make available at reasonable times for inspection by the selling Holders, the managing underwriter(s), if any, participating in any disposition pursuant to such Registration Statement and any attorney or accountant retained by such selling Holder or any of the underwriter(s), all financial and other records, pertinent corporate documents and properties of each of the Company and the Guarantors and cause the Company’s and the Guarantors’ officers, directors and employees to supply all information reasonably requested by any such Holder, underwriter,

 

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attorney or accountant in connection with such Registration Statement or any post-effective amendment thereto subsequent to the filing thereof and prior to its effectiveness and to participate in meetings with investors to the extent requested by the managing underwriter(s), if any; provided that any Holder or representative thereof requesting or receiving such information shall agree to be bound by reasonable confidentiality agreements and procedures with respect thereto;

 

(vii)                         in the case of a Shelf Registration Statement, if requested by any selling Holders or the underwriter(s), if any, promptly incorporate in any Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if necessary, such information as such selling Holders and underwriter(s), if any, may reasonably request to have included therein, including, without limitation, information relating to the “Plan of Distribution” of the Transfer Restricted Securities, information with respect to the principal amount of Transfer Restricted Securities being sold to such underwriter(s), the purchase price being paid therefor and any other terms of the offering of the Transfer Restricted Securities to be sold in such offering; and make all required filings of such Prospectus supplement or post-effective amendment as soon as practicable after the Company is notified of the matters to be incorporated in such Prospectus supplement or post-effective amendment;

 

(viii)                      in the case of a Shelf Registration Statement, upon request, furnish to each selling Holder and each of the underwriter(s), if any, without charge, at least one copy of the Registration Statement, as first filed with the Commission, and of each amendment thereto, including financial statements and schedules (without all documents incorporated by reference therein or exhibits thereto, unless requested);

 

(ix)                            in the case of a Shelf Registration Statement, upon request, deliver to each selling Holder and each of the underwriter(s), if any, without charge, as many copies of the Prospectus (including each preliminary prospectus) and any amendment or supplement thereto as such Persons reasonably may request; provided, that if no Registration Statement is effective or no Prospectus is usable in accordance with the provisions of Section 6(b) hereof, the Company shall deliver to each selling Holder a notice to that effect in response to such request; each of the Company and the Guarantors hereby consents to the use (in accordance with law) of the Prospectus and any amendment or supplement thereto by each of the selling Holders and each of the underwriter(s), if any, in connection with the offering and the sale of the Transfer Restricted Securities covered by the Prospectus or any amendment or supplement thereto;

 

(x)                               in the case of a Shelf Registration Statement, upon the reasonable request of such Holder, enter into such agreements (including an underwriting agreement containing customary terms), and make such representations and warranties, and take all such other actions in connection therewith in order to expedite or facilitate the disposition of the Transfer Restricted Securities pursuant to any Registration Statement contemplated by this Agreement, all to such extent as may be customarily and reasonably requested by any Holder or Holders of Transfer Restricted Securities or underwriter in connection with any sale or resale pursuant to any Registration Statement contemplated by this Agreement; and whether or not an underwriting agreement is entered into and whether or not 

 

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the registration is an Underwritten Registration, each of the Company and the Guarantors shall:

 

(A)                           upon the request of any Holder, furnish to each selling Holder and each underwriter, if any, in such substance and scope as they may reasonably request and as are customarily made by issuers to underwriters in primary underwritten offerings, upon the date of the effectiveness of the Shelf Registration Statement:

 

(1)                              a certificate in customary form, dated the date of effectiveness of the Shelf Registration Statement, as the case may be, signed by (y) the Chief Executive Officer or any Vice President and (z) a principal financial or accounting officer of the Company and such Guarantor, confirming, as of the date thereof, the matters set forth in paragraphs (i) and (ii) of Section 5(e) of the Purchase Agreement and such other matters as such parties may reasonably request;

 

(2)                              an opinion in customary form, dated the date of the effectiveness of the Shelf Registration Statement of counsel for the Company and the Guarantors, covering the matters customarily covered in opinions request in similar underwritten offerings and such other matters as such parties may reasonably request; and

 

(3)                              use reasonable best efforts to obtain a customary comfort letter, dated the date of effectiveness of the Shelf Registration Statement, from the Company’s independent accountants, in the customary form and covering matters of the type customarily requested to be covered in comfort letters by underwriters in connection with primary underwritten offerings, and covering or affirming the matters set forth in the comfort letters delivered pursuant to Section 5(a) of the Purchase Agreement, without exception;

 

(B)                            deliver such other documents and certificates as may be reasonably requested by such parties to evidence compliance with Section 6(c)(x)(A) hereof and with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company or any of the Guarantors pursuant to this Section 6(c)(x), if any.

 

(xi)                            prior to any public offering of Transfer Restricted Securities, cooperate with the selling Holders, the underwriter(s), if any, and their respective counsel in connection with the registration and qualification of the Transfer Restricted Securities under the state securities or blue sky laws of such jurisdictions as the selling Holders or underwriter(s), if any, may request and do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Transfer Restricted Securities covered by the Shelf Registration Statement; provided, however, that none of the Company nor the Guarantors shall be required to register or qualify as a foreign corporation where it is not then so qualified or to take any action that would subject it to the service 

 

-12-

 

of process in suits or to taxation, other than as to matters and transactions relating to the Registration Statement, in any jurisdiction where it is not then so subject;

 

(xii)                         shall issue, upon the request of any Holder of Transfer Restricted Securities covered by the Shelf Registration Statement, Exchange Securities having an aggregate principal amount equal to the aggregate principal amount of Transfer Restricted Securities surrendered to the Company by such Holder in exchange therefor or being sold by such Holder, such Exchange Securities to be registered in the name of such Holder or in the name of the purchaser(s) of such Securities, as the case may be, and in return, the Transfer Restricted Securities held by such Holder shall be surrendered to the Company for cancellation;

 

(xiii)                      cooperate with the selling Holders and the underwriter(s), if any, to facilitate the timely preparation and delivery of certificates representing Transfer Restricted Securities to be sold and not bearing any restrictive legends; and enable such Transfer Restricted Securities to be in such denominations and registered in such names as the Holders or the underwriter(s), if any, may request at least three Business Days prior to any sale of Transfer Restricted Securities made by such Holders or underwriter(s);

 

(xiv)                     use their reasonable best efforts to cause the Transfer Restricted Securities and Transfer Restricted Existing Securities covered by the Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the seller or sellers thereof or the underwriter(s), if any, to consummate the disposition of such Transfer Restricted Securities, subject to the proviso contained in Section 6(c)(xii) hereof;

 

(xv)                        if any fact or event contemplated by Section 6(c)(iii)(D) hereof shall exist or have occurred, prepare a supplement or post-effective amendment to the Registration Statement or related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of Transfer Restricted Securities, the Prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein not misleading;

 

(xvi)                     provide a CUSIP number for all Securities (including the Existing Securities) not later than the effective date of the Registration Statement covering such Securities and provide the Trustee under the Indenture with printed certificates for such Securities which are in a form eligible for deposit with the Depository Trust Company and take all other action necessary to ensure that all such Securities are eligible for deposit with the Depository Trust Company and use their commercially reasonably efforts to cause the Exchange Securities and the Original Exchange Securities to have the same unrestricted CUSIP number and to trade fungibly by the first Interest Payment Date after the completion of the Exchange Offer;

 

(xvii)                  cooperate and assist in any filings required to be made with FINRA and in the performance of any due diligence investigation by any underwriter (including any 

 

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“qualified independent underwriter”) that is required to be retained in accordance with the rules and regulations of FINRA;

 

(xviii)               otherwise use their reasonable best efforts to comply with all applicable rules and regulations of the Commission, and make generally available to its security holders, as soon as practicable, a consolidated earnings statement meeting the requirements of Rule 158 under the Securities Act (which need not be audited) for the twelve-month period commencing after the effective date of the Registration Statement;

 

(xix)                     cause the Indenture to be qualified under the Trust Indenture Act not later than the effective date of the first Registration Statement required by this Agreement, and, in connection therewith, cooperate with the Trustee and the Holders of Securities to effect such changes to the Indenture as may be required for such Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and to execute and use its reasonable best efforts to cause the Trustee to execute, all documents that may be required to effect such changes and all other forms and documents required to be filed with the Commission to enable such Indenture to be so qualified in a timely manner;

 

(xx)                        provide promptly to each Holder upon request each document filed with the Commission pursuant to the requirements of Section 13 and Section 15 of the Exchange Act; and

 

(xxi)                     use their reasonable best efforts to include the Transfer Restricted Securities in any Exchange Offer Registration Statement (as defined in the Existing Registration Rights Agreement) filed with respect to the Existing Securities or to include the Existing Exchange Offer in the Exchange Offer Registration Statement filed pursuant to this Agreement, as provided in Section 3(a)(ii).

 

(d)                              Restrictions on Holders.  Each Holder agrees by acquisition of a Transfer Restricted Security that, upon receipt of the notice referred to in Section 6(c)(iii)(C) or  any notice from the Company of the existence of any fact of the kind described in Section 6(c)(iii)(D) hereof (in each case, a “Suspension Notice”), such Holder will forthwith discontinue disposition of Transfer Restricted Securities pursuant to the applicable Registration Statement until (i) such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 6(c)(xv) hereof, or (ii) it is advised in writing (the “Advice”) by the Company that the use of the Prospectus may be resumed, and has received copies of any additional or supplemental filings that are incorporated by reference in the Prospectus.  Each Holder receiving a Suspension Notice hereby agrees that it will either (i) destroy any Prospectuses, other than permanent file copies, then in such Holder’s possession which have been replaced by the Company with more recently dated Prospectuses, or (ii)  deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Transfer Restricted Securities that was current at the time of receipt of such notice.  In the event the Company shall give any such notice, the time period regarding the effectiveness of such Registration Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended by the number of days during the period from and including the date of the giving of such notice pursuant to Section 6(c)(iii)(D) hereof to and including the date when each selling Holder covered by such Registration Statement shall have received the copies of the supplemented or 

 

-14-

 

amended Prospectus contemplated by Section 6(c)(xv) hereof or shall have received the Advice; provided, however, that no such extension shall be taken into account in determining whether Additional Interest is due pursuant to Section 5 hereof or the amount of such Additional Interest, it being agreed that the Company’s option to suspend use of a Registration Statement pursuant to this paragraph shall be treated as a Registration Default for purposes of Section 5 hereof.

 

SECTION 7.             Registration Expenses.

 

(a)                               All expenses incident to the Company’s and the Guarantors’ performance of or compliance with this Agreement will be borne by the Company and the Guarantors, jointly and severally, regardless of whether a Registration Statement becomes effective, including, without limitation: (i) all registration and filing fees and expenses (including filings made by any Initial Purchaser or Holder with FINRA (and, if applicable, the fees and expenses of any “qualified independent underwriter” and its counsel that may be required by the rules and regulations of FINRA)); (ii) all fees and expenses of compliance with federal securities and state securities or blue sky laws; (iii) all expenses of printing (including printing certificates for the Exchange Securities to be issued in the Exchange Offer and printing of Prospectuses), messenger and delivery services and telephone; (iv) all fees and disbursements of counsel for the Company and the Guarantors and, subject to Section 7(b) hereof, reasonable and documented fees and disbursements for one counsel for all of the Holders of Transfer Restricted Securities; (v) all application and filing fees in connection with listing the Exchange Securities on a securities exchange or automated quotation system pursuant to the requirements thereof; and (vi) all fees and disbursements of independent certified public accountants of the Company and the Guarantors (including the expenses of any special audit and comfort letters required by or incident to such performance).

 

Each of the Company and the Guarantors will, in any event, bear its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expenses of any annual audit and the fees and expenses of any Person, including special experts, retained by the Company or the Guarantors.

 

(b)                              In connection with any Registration Statement required by this Agreement (including, without limitation, the Exchange Offer Registration Statement and the Shelf Registration Statement), the Company and the Guarantors, jointly and severally, will reimburse the Initial Purchasers and the Holders of Transfer Restricted Securities being tendered in the Exchange Offer and/or resold pursuant to the “Plan of Distribution” contained in the Exchange Offer Registration Statement or registered pursuant to the Shelf Registration Statement, as applicable, for the reasonable and documented fees and disbursements of not more than one counsel, who shall be Cahill Gordon & Reindel LLP or such other counsel as may be chosen by the Holders of a majority in principal amount of the Transfer Restricted Securities for whose benefit such Registration Statement is being prepared.

 

SECTION 8.             Indemnification.

 

(a)                               The Company and the Guarantors agree, jointly and severally, to indemnify and hold harmless (i) each Initial Purchaser and each Holder and (ii) each Person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any Initial Purchaser or any Holder (any of the Persons referred to in this clause (ii) being hereinafter

 

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referred to as a “controlling person”) and (iii) the respective officers, directors, partners, employees, representatives and agents of any Holder or any controlling person (any Person referred to in clause (i), (ii) or (iii) may hereinafter be referred to as an “Indemnified Holder”), to the fullest extent lawful, from and against any and all losses, claims, damages, liabilities, judgments, actions and expenses (including, without limitation, and as incurred, reimbursement of all reasonable out-of-pocket costs of investigating, preparing, pursuing, settling, compromising, paying or defending any claim or action, or any investigation or proceeding by any governmental agency or body, commenced or threatened, including the reasonable fees and expenses of counsel to any Indemnified Holder), joint or several, directly or indirectly caused by, related to, based upon, arising out of or in connection with any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or Prospectus (or any amendment or supplement thereto), or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses are caused by an untrue statement or omission or alleged untrue statement or omission that is based upon information relating to any of the Initial Purchasers or any of the Holders furnished in writing to the Company by or on behalf of the Initial Purchasers or any of the Holders expressly for use therein.  This indemnity agreement shall be in addition to any liability which the Company or any of the Guarantors may otherwise have.

 

In case any action or proceeding (including any governmental or regulatory investigation or proceeding) shall be brought or asserted against any of the Indemnified Holders with respect to which indemnity may be sought against the Company or the Guarantors, such Indemnified Holder (or the Indemnified Holder controlled by such controlling person) shall promptly notify the Company and the Guarantors in writing; provided, however, that the failure to give such notice shall not relieve any of the Company or the Guarantors of its obligations pursuant to this Agreement except to the extent that it had been materially prejudiced by such failure (through forfeiture of substantive rights).  Such Indemnified Holder shall have the right to employ its own counsel in any such action and the fees and expenses of such counsel shall be paid, as incurred, by the Company and the Guarantors.  The Company and the Guarantors shall not, in connection with any one such action or proceeding or separate but substantially similar or related actions or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for such Indemnified Holders, which firm shall be designated by the Holders.  The Company and the Guarantors shall be liable for any settlement of any such action or proceeding effected with the Company’s and the Guarantors’ prior written consent, which consent shall not be withheld unreasonably, and each of the Company and the Guarantors agrees to indemnify and hold harmless any Indemnified Holder from and against any loss, claim, damage, liability or reasonable out-of-pocket expense by reason of any settlement of any action effected with the written consent of the Company and the Guarantors.  The Company and the Guarantors shall not, without the prior written consent of each Indemnified Holder, settle or compromise or consent to the entry of judgment in or otherwise seek to terminate any pending or threatened action, claim, litigation or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any Indemnified Holder is a party thereto), unless such settlement, compromise, consent or termination (i) includes an unconditional release of each Indemnified Holder from all liability arising out of such action, claim, litigation or proceeding

 

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and (ii) does not include a statement as to an admission of fault, culpability or a failure to act, by or on behalf of the Indemnified Holder.

 

(b)                              By its acquisition of Transfer Restricted Securities each Holder of Transfer Restricted Securities agrees, severally and not jointly, to indemnify and hold harmless the Company, the Guarantors and their respective directors and officers of the Company and the Guarantors who sign a Registration Statement, and any Person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company or any of the Guarantors, and the respective officers, directors, partners, employees, representatives and agents of each such Person, to the same extent as the foregoing indemnity from the Company and the Guarantors to each of the Indemnified Holders, but only with respect to claims and actions based on information relating to such Holder furnished in writing by such Holder expressly for use in any Registration Statement.  In case any action or proceeding shall be brought against the Company, the Guarantors or their respective directors or officers or any such controlling person in respect of which indemnity may be sought against a Holder of Transfer Restricted Securities, such Holder shall have the rights and duties given the Company and the Guarantors, and the Company, the Guarantors, their respective directors and officers and such controlling person shall have the rights and duties given to each Holder by the preceding paragraph.

 

(c)                               If the indemnification provided for in this Section 8 is unavailable to an indemnified party under Section 8(a) or (b) hereof (other than by reason of exceptions provided in those Sections) in respect of any losses, claims, damages, liabilities, judgments, actions or expenses referred to therein, then each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors, on the one hand, and the Holders, on the other hand, from the Initial Placement (which in the case of the Company and the Guarantors shall be deemed to be equal to the total gross proceeds to the Company and the Guarantors from the Initial Placement), the amount of Additional Interest which did not become payable as a result of the filing of the Registration Statement resulting in such losses, claims, damages, liabilities, judgments actions or expenses, and such Registration Statement, or if such allocation is not permitted by applicable law, the relative fault of the Company and the Guarantors, on the one hand, and the Holders, on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations.  The relative fault of the Company, on the one hand, and of the Indemnified Holder, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or any of the Guarantors, on the one hand, or the Indemnified Holders, on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.  The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 8(a) hereof, any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim.

 

The Company, the Guarantors and each Holder of Transfer Restricted Securities agree that it would not be just and equitable if contribution pursuant to this Section 8(c) were determined

 

-17-

 

by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph.  The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities or expenses referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim.  Notwithstanding the provisions of this Section 8, none of the Holders (and its related Indemnified Holders) shall be required to contribute, in the aggregate, any amount in excess of the amount by which the total discount received by such Holder with respect to the Initial Securities exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  The Holders’ obligations to contribute pursuant to this Section 8(c) are several in proportion to the respective principal amount of Initial Securities held by each of the Holders hereunder and not joint.

 

SECTION 9.             Participation in Underwritten Registrations.  No Holder may participate in any Underwritten Registration hereunder unless such Holder (a) agrees to sell such Holder’s Transfer Restricted Securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all reasonable questionnaires, powers of attorney, indemnities, underwriting agreements, lock-up letters and other documents required under the terms of such underwriting arrangements.

 

SECTION 10.     Selection of Underwriters.  The Holders of Transfer Restricted Securities covered by the Shelf Registration Statement who desire to do so may sell such Transfer Restricted Securities in an Underwritten Offering.  In any such Underwritten Offering, the investment banker(s) and managing underwriter(s) that will administer such offering will be selected by the Holders of a majority in aggregate principal amount of the Transfer Restricted Securities included in such offering; provided, however, that such investment banker(s) and managing underwriter(s) must be reasonably satisfactory to the Company.

 

SECTION 11.     Miscellaneous.

 

(a)                               Remedies.  Each of the Company and the Guarantors hereby agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Agreement and hereby agree to waive the defense in any action for specific performance that a remedy at law would be adequate.

 

(b)                              No Inconsistent Agreements.  Each of the Company and the Guarantors will not on or after the date of this Agreement enter into any agreement with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. Except for the Existing Registration Rights Agreement, neither the Company nor any of the Guarantors has previously entered into any agreement granting any registration rights with respect to its securities to any Person.  Except for the Existing Registration Rights Agreement, the rights granted to the Holders hereunder do not in any way conflict with

 

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and are not inconsistent with the rights granted to the holders of the Company’s or any of the Guarantors’ securities under any agreement in effect on the date hereof.

 

(c)                               Amendments and Waivers.  The provisions of this Agreement may not be amended, modified or supplemented, and waivers or consents to or departures from the provisions hereof may not be given unless the Company has (i) in the case of Section 5 hereof and this Section 11(c)(i), obtained the written consent of Holders of all outstanding Transfer Restricted Securities and (ii) in the case of all other provisions hereof, obtained the written consent of Holders of a majority of the outstanding principal amount of Transfer Restricted Securities (excluding any Transfer Restricted Securities held by the Company or its Affiliates).  Notwithstanding the foregoing, a waiver or consent to departure from the provisions hereof that relates exclusively to the rights of Holders whose securities are being tendered pursuant to the Exchange Offer and that does not affect directly or indirectly the rights of other Holders whose securities are not being tendered pursuant to such Exchange Offer may be given by the Holders of a majority of the outstanding principal amount of Transfer Restricted Securities being tendered or registered; provided, however, that, with respect to any matter that directly or indirectly affects the rights of any Initial Purchaser hereunder, the Company shall obtain the written consent of each such Initial Purchaser with respect to which such amendment, qualification, supplement, waiver, consent or departure is to be effective.

 

(d)                              Notices.  All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, first-class mail (registered or certified, return receipt requested), telex, telecopier, or air courier guaranteeing overnight delivery:

 

(i)                                   if to a Holder, at the address set forth on the records of the Registrar under the Indenture, with a copy to the Registrar under the Indenture; and

 

(ii)                                if to the Company:

 

Fifth & Pacific Companies, Inc.
 1441 Broadway
 New York, New York 10018
 Fax:  (201) 295-6118
 Attention:  Nicholas Rubino

 

With a copy to:

 

Paul, Weiss, Rifkind, Wharton & Garrison LLP
 1285 Avenue of the Americas
 New York, NY 10019-6064
 Fax: (212) 373-7550
 Attention: Lawrence G. Wee

 

All such notices and communications shall be deemed to have been duly given:  at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if 

 

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telecopied; and on the next Business Day, if timely delivered to an air courier guaranteeing overnight delivery.

 

Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee at the address specified in the Indenture.

 

(e)                               Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties, including, without limitation, and without the need for an express assignment, subsequent Holders of Transfer Restricted Securities; provided, however, that this Agreement shall not inure to the benefit of or be binding upon a successor or assign of a Holder unless and to the extent such successor or assign acquired Transfer Restricted Securities from such Holder.

 

(f)                                  Counterparts.  This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

(g)                               Headings.  The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

(h)                               Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW RULES THEREOF.

 

(i)                                   Severability.  In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.

 

(j)                                  Entire Agreement.  This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein.  There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the registration rights granted by the Company with respect to the Transfer Restricted Securities.  This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter.

 

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

 

	
 
    	
FIFTH & PACIFIC   COMPANIES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Nicholas Rubino
    
	
 
    	
Name: Nicholas Rubino
    
	
 
    	
Title: Senior Vice   President, Chief Legal Officer, General Counsel and Secretary
    

 

 

 

 

ADELINGTON DESIGN GROUP INC. (F/K/A Liz Claiborne Accessories, Inc.)

ADELINGTON DESIGN SALES GROUP INC (F/K/A Liz Claiborne Accessories-Sales, Inc.

BOODLE, INC. (F/K/A LCI LAUNDRY)

DB NEWCO CORP.

FIFTH & PACIFIC COMPANIES COSMETICS, INC. (F/K/A Liz Claiborne Cosmetics, Inc.)

FIFTH & PACIFIC COMPANIES FOREIGN HOLDINGS, INC. (F/K/A Liz Claiborne Foreign Holdings, Inc.)

FIFTH & PACIFIC COMPANIES PUERTO RICO, INC. (F/K/A Liz Claiborne Puerto Rico, Inc.)

FIFTH & PACIFIC COMPANIES SALES, INC. (F/K/A Liz Claiborne Sales, Inc.)

HAVANA, LLC

JERG, INC. (F/K/A C&C California, Inc.)

JUICY COUTURE, INC.

KATE SPADE LLC

KATE SPADE PUERTO RICO, INC.

L.C. AUGUSTA, INC.

L.C. CARIBBEAN HOLDINGS, INC.

L.C. LIBRA, LLC

L.C. LICENSING, LLC

L.C. SERVICE COMPANY, INC.

L.C. SPECIAL MARKETS, INC.

LCCI HOLDINGS LLC

LCI HOLDINGS, INC.

LCI INVESTMENTS, INC.

LIZ CLAIBORNE JAPAN, INC.

 

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LIZ CLAIBORNE SHOES, INC.

LUCKY BRAND DUNGAREES, INC.

LUCKY BRAND DUNGAREES STORES, INC.

MONET INTERNATIONAL, INC.

MONET PUERTO RICO, INC.

NONEE I, LLC (F/K/A ENYCE LLC)

NONEE I HOLDING, LLC (F/K/A ENYCE HOLDING, LLC)

SEGRETS, INC.

SKYLARK SPORT MARKETING CORPORATION

WCFL HOLDINGS LLC

WESTCOAST CONTEMPO PROMENADE, INC.

WESTCOAST CONTEMPO RETAIL, INC.

WESTCOAST CONTEMPO USA, INC.

 

 

 

	
 
    	
By:
    	
/s/ Nicholas Rubino
    
	
 
    	
Name: Nicholas Rubino
    
	
 
    	
Title: Senior Vice   President, Chief Legal Officer, General Counsel and Secretary
    

 

 

The foregoing Registration Rights Agreement is hereby confirmed and accepted as of the date first above written:

 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

 

By:                            Merrill Lynch, Pierce, Fenner & Smith Incorporated

 

 

By:                            /s/ Lex Maultsby
                                                  Managing Director

 

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Schedule I

 

 

LIST OF GUARANTORS

 

 

	
Adelington   Design Group Inc. (f/k/a Liz Claiborne Accessories, Inc.)
    	
 
    	
Delaware
    
	
Adelington   Design Sales Group Inc. (f/k/a Liz Claiborne Accessories-Sales, Inc.)
    	
 
    	
Delaware
    
	
Boodle, Inc.   (f/k/a LCI Laundry)
    	
 
    	
Delaware
    
	
DB Newco Corp.
    	
 
    	
Delaware
    
	
Fifth &   Pacific Companies Cosmetics, Inc. (f/k/a Liz Claiborne Cosmetics, Inc.)
    	
 
    	
Delaware
    
	
Fifth &   Pacific Companies Foreign Holdings, Inc. (f/k/a Liz Claiborne Foreign   Holdings, Inc.)
    	
 
    	
Delaware
    
	
Fifth & Pacific Companies Puerto Rico, Inc.   (f/k/a Liz   Claiborne Puerto Rico, Inc.)
    	
 
    	
Delaware
    
	
Fifth &   Pacific Companies Sales, Inc. (f/k/a Liz Claiborne Sales, Inc.)
    	
 
    	
Delaware
    
	
Havana, LLC
    	
 
    	
Delaware
    
	
Jerg, Inc. (f/k/a C&C California,   Inc.)
    	
 
    	
California
    
	
Juicy Couture,   Inc.
    	
 
    	
California
    
	
Kate Spade LLC
    	
 
    	
Delaware
    
	
Kate Spade   Puerto Rico, Inc.
    	
 
    	
Delaware
    
	
L.C. Augusta,   Inc.
    	
 
    	
Delaware
    
	
L.C. Caribbean   Holdings, Inc.
    	
 
    	
Delaware
    
	
L.C. Libra, LLC
    	
 
    	
Delaware
    
	
L.C. Licensing,   Inc.
    	
 
    	
Delaware
    
	
L.C. Service   Company, Inc.
    	
 
    	
Delaware
    
	
L.C. Special   Markets, Inc.
    	
 
    	
Delaware
    
	
LCCI Holdings   LLC
    	
 
    	
Delaware
    
	
LCI Holdings,   Inc.
    	
 
    	
Delaware
    
	
LCI Investments,   Inc.
    	
 
    	
Delaware
    
	
Liz Claiborne   Japan, Inc.
    	
 
    	
Delaware
    
	
Liz Claiborne   Shoes, Inc.
    	
 
    	
Delaware
    
	
Lucky Brand   Dungarees, Inc.
    	
 
    	
Delaware
    
	
Lucky Brand   Dungarees Stores, Inc.
    	
 
    	
Delaware
    
	
Monet   International, Inc. 
    	
 
    	
Delaware
    
	
Monet Puerto   Rico, Inc.
    	
 
    	
Delaware
    
	
Nonee I, LLC   (f/k/a Enyce LLC)
    	
 
    	
Delaware
    
	
Nonee I Holding,   LLC (f/k/a Enyce Holding, LLC)
    	
 
    	
Delaware
    
	
Segrets, Inc.
    	
 
    	
Delaware
    
	
Skylark Sport   Marketing Corporation
    	
 
    	
California
    
	
WCFL Holdings   LLC
    	
 
    	
Delaware
    
	
Westcoast   Contempo Promenade, Inc.
    	
 
    	
Washington
    
	
Westcoast   Contempo Retail, Inc.
    	
 
    	
Washington
    
	
Westcoast   Contempo USA, Inc.
    	
 
    	
WashingtonExhibit 10.1

 

FIFTH AMENDMENT to the Credit Agreement (as defined below), dated as of June 5, 2012 (this “Fifth Amendment”).

 

W I T N E S S E T H:

 

WHEREAS, Fifth & Pacific Companies, Inc. (fka Liz Claiborne, Inc.) (the “Company”), Fifth & Pacific Companies Canada Inc. (fka Liz Claiborne Canada Inc.) and Juicy Couture Europe Limited (collectively, the “Borrowers”) have entered into the Second Amended and Restated Credit Agreement, dated as of May 6, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrowers, the other Loan Parties from time to time party thereto, the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and US Collateral Agent, J.P. Morgan Europe Limited, as European Administrative Agent and European Collateral Agent, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent and Canadian Collateral Agent, Bank of America, N.A., as Syndication Agent, and Wells Fargo Capital Finance, LLC, SunTrust Bank and General Electric Capital Corporation, as Documentation Agents;

 

WHEREAS, the Borrowers have requested certain amendments to the Credit Agreement as set forth herein; and

 

WHEREAS, the Required Lenders have consented to the requested amendments as set forth herein;

 

NOW, THEREFORE, in consideration of the premises contained herein, the parties hereto agree as follows:

 

1.         Defined Terms.  Unless otherwise defined herein, capitalized terms used herein which are defined in the Credit Agreement are used herein as therein defined.

 

2.         Amendments to Section 1.01 of the Credit Agreement (Defined Terms).  Section 1.01 of the Credit Agreement is hereby amended by:

 

(i) deleting the definition of “Acquired JV Interests” in its entirety and substituting in lieu thereof the following new definition:

 

“Acquired JV Interests” has the meaning assigned to such term in Section 6.04(w).”;

 

(ii) deleting the definition of “Consolidated EBITDA” in its entirety and substituting in lieu thereof the following new definition:

 

“Consolidated EBITDA” means, for any period, Consolidated Net Income from Continuing Operations Attributable (determined in accordance with GAAP) to the Company for such period plus (a) without duplication and to the extent reflected as a charge in the statement of such Consolidated Net Income for such period, the sum of (i) income or franchise tax expense for such period, (ii) Consolidated Interest Expense for such period, (iii) all amounts attributable to depreciation and amortization expense for such period, (iv) any items of loss resulting from the sale of assets other than in the ordinary course of business for such period, (v) any non-cash charges for tangible or intangible impairments or asset write downs for such period (excluding any write downs for write-offs of Inventory), (vi) any other extraordinary non-cash charges for such period (but excluding any non-cash charge in respect of an item that was included in Consolidated Net Income in a prior period and any non-cash charge that relates to the write-down or write-off of inventory), (vii) cash restructuring charges, cash charges in connection with store

 

 

closures and other non-recurring cash charges, in each case, related to cost reduction and brand exiting related activities, incurred on or prior to the first anniversary of the Effective Date in an aggregate amount not to exceed $30,000,000 and (viii) any expenses or charges incurred in connection with (a) the offering of the 2011 Notes or any Additional Notes or any Additional Pari Passu Note Obligations that, in each case, constitute Euro Notes Refinancing Debt, or any 2012 Add-On Notes, (b) any Tender Offer, (c) any Consent Solicitation and (d) any legal expenses or charges incurred in connection with the First Amendment in an aggregate amount with respect to clauses (a) through (d) above not to exceed $20,000,000 during the term of this Agreement, minus (b) without duplication and to the extent included in Consolidated Net Income, (i) any items of gain resulting from the sale of assets other than in the ordinary course of business for such period, (ii) any cash payments made during such period in respect of non-cash charges described in clause (a)(v) or (a)(vi) taken in a prior period and (iii) any interest income for such period and (iv) any extraordinary gains and any non-cash items of income for such period, all calculated for the Company and its Subsidiaries on a consolidated basis in accordance with GAAP.  Notwithstanding anything to the contrary set forth herein, for purposes of calculating the Fixed Charge Coverage Ratio, Consolidated EBITDA shall include discontinued operations of the Company and its Subsidiaries, as defined by GAAP, until the applicable restated financial statements reflecting such discontinuation are available.”; and

 

(iii) inserting in alphabetical order the following new definitions:

 

“2012 Add-On Notes” means the Additional Notes of the Company due 2019 issued on the Fifth Amendment Effective Date.

 

“Fifth Amendment” means the Fifth Amendment, dated as of June 5, 2012, to this Agreement.

 

“Fifth Amendment Effective Date” has the meaning assigned to such term in the Fifth Amendment.

 

“Kate Spade JV Holdco” means a wholly owned Subsidiary of Kate Spade LLC organized under the laws of Japan.

 

3.         Amendment to Section 2.11 of the Credit Agreement (Prepayment of Loans).  Section 2.11 of the Credit Agreement is hereby amended by deleting clause (f) thereof in its entirety and inserting in lieu thereof the following new clause (f):

 

“(f) In the event and on each occasion that any Net Proceeds are received by or on behalf of the Company or any Subsidiary in respect of any Indebtedness referred to in Section 6.02(p) (in each case, other than (so long as no Default or Event of Default shall have occurred and be continuing or would result from the issuance thereof) any Trademark Secured Debt that constitutes (i) Euro Notes Refinancing Debt, (ii) Existing Euro Notes or (iii) Indebtedness incurred pursuant to Section 6.01(m)), the Borrowers shall, immediately after such Net Proceeds are received by the Company or any Subsidiary, prepay the Revolving Loans and Swingline Loans in an aggregate amount equal to the lesser of (x) 100% of such Net Proceeds and (y) the aggregate amount of Revolving Loans and Swingline Loans outstanding.  However, notwithstanding the foregoing, so long as no Event of Default shall have occurred and be continuing, if any prepayment of Eurocurrency Loans would be required to be made under this Section 2.11(f) other than on the last day of the Interest Period therefor, the Administrative Agent, at the direction of the Borrower Representative, shall keep such funds in a non-interest

 

 

bearing account and shall not apply such funds to the prepayment of any such Eurocurrency Loan until the last day of such Interest Period.”

 

4.         Amendments to Section 6.01 of the Credit Agreement (Indebtedness).  Section 6.01 of the Credit Agreement is hereby amended by (i) deleting clause (l) thereof in its entirety and inserting in lieu thereof the following new clause (l):

 

“(l) (x) Indebtedness in respect of the Existing Euro Notes and (y) any Indebtedness (including, without limitation, subject to the terms hereof, any 2011 Notes, any Additional Notes and any Additional Pari Passu Note Obligations) which represents an extension, refinancing, replacement or renewal thereof from time to time (whether in whole or in part) and including one or more successive extensions, refinancing, replacements or renewals thereof from time to time (whether in whole or in part) (including any Guarantees thereof to the extent permitted pursuant to the following proviso) (the “Euro Notes Refinancing Debt”); provided that, (i) the principal amount (or accreted value, if applicable) of the Euro Notes Refinancing Debt does not exceed the principal amount (or accreted value, if applicable) of the Existing Euro Notes so extended, refinanced, replaced or renewed (plus any unpaid, accrued interest, fees or premiums in connection with the Existing Euro Notes and any reasonable costs associated with such extension, refinancing, replacement or renewal (including, for the avoidance of doubt, tender premiums and any Consent Solicitation payments)), (ii) such Euro Notes Refinancing Debt shall be either (A) unsecured or (B) secured by Liens on assets that do not constitute Collateral (other than Trademarks (and any License granting a right to use any such Trademark) (to the extent permitted pursuant to Section 6.02(p)) and/or Permitted Second Priority Liens (to the extent permitted pursuant to Section 6.02(s))) and are otherwise permitted pursuant to Section 6.02, and (iii) such Euro Notes Refinancing Debt does not have a shorter average weighted maturity than the Existing Euro Notes; provided further that all or any part of the 2012 Add-On Notes shall be deemed to constitute Euro Notes Refinancing Debt so long as (and solely to the extent that) the Net Proceeds thereof (or of any such portion thereof) are intended to be and used to repay, repurchase or redeem the Existing Euro Notes (plus any unpaid, accrued interest, fees or premiums in connection with the Existing Euro Notes and any reasonable costs associated with the 2012 Add-On Notes (including, for the avoidance of doubt, tender premiums and any Consent Solicitation payments);”

 

and (ii) deleting clause (m) thereof in its entirety and inserting in lieu thereof the following new clause (m):

 

“(m) Indebtedness (i) constituting 2012 Add-On Notes; provided that the Net Proceeds thereof are used to purchase Acquired JV Interests and make other investments, directly or indirectly, in Kate Spade JV Holdco, in each case, in accordance with Section 6.04(w) and (ii) constituting 2012 Add-On Notes in an aggregate principal amount not to exceed $20,000,000;”

 

5.         Amendments to Section 6.02 of the Credit Agreement (Liens).  Section 6.02 of the Credit Agreement is hereby amended by (i) deleting clause (p) thereof in its entirety and inserting in lieu thereof the following new clause (p):

 

“(p) Liens on Trademarks of the US Loan Parties (and Liens on any License granting a right to use such Trademark) securing Indebtedness of the Company or any other US Loan Party permitted pursuant to Section 6.01 (the “Trademark Secured Debt”) in an aggregate amount of not less than $150,000,000; provided that (x) the Net Proceeds received by the Company and its Subsidiaries in connection with such Indebtedness (other than (so long as no Default or Event of Default shall have occurred and be continuing or would result from the issuance thereof) any Trademark Secured Debt that constitutes (i) Euro Notes Refinancing Debt, (ii) Existing Euro Notes or (iii) Indebtedness incurred pursuant to Section 6.01(m)) shall be used to prepay the Loans in accordance with Section 2.11(f), (y)

 

 

such Liens may be first priority Liens so long as such Trademarks and any such License shall be subject to a second priority perfected security interest in favor of the applicable Collateral Agent (for the benefit of the Agents, the applicable Lenders and the applicable Issuing Banks) and such Liens shall be subject to an intercreditor agreement reasonably satisfactory to the Administrative Agent and (z) the Administrative Agent and the applicable Collateral Agents shall have been granted a non-exclusive royalty free license with respect to such Trademarks to the extent any such Trademarks are used in connection with any Collateral;”

 

and (ii) deleting clause (s) thereof in its entirety and inserting in lieu thereof the following new clause (s):

 

“(s)  Liens on the Collateral (the “Permitted Second Priority Liens”) securing the Trademark Secured Debt; provided that (w) the Net Proceeds received by the Company and its Subsidiaries in connection with such Indebtedness (other than (so long as no Default or Event of Default shall have occurred and be continuing or would result from the issuance thereof) any Trademark Secured Debt that constitutes (i) Euro Notes Refinancing Debt,(ii) Existing Euro Notes or (iii) Indebtedness incurred pursuant to Section 6.01(m)) shall be used to prepay the Loans in accordance with Section 2.11(f), (x) such Trademark Secured Debt (other than the Existing Euro Notes) shall not have a final maturity date that is earlier than the Maturity Date, (y) such Liens (other than the Liens upon Trademarks and Liens on any License granting a right to use such Trademarks referred to in clause (p) above) shall be junior to the liens granted pursuant to the Loan Documents to the applicable Collateral Agent, for the benefit of the Agents, the applicable Lenders and the applicable Issuing Banks, and shall be subject to an intercreditor agreement reasonably satisfactory to the Required Lenders and (z) the applicable Collateral Agent(s) shall have been granted a second priority perfected Lien, for the benefit of the Agents, the applicable Lenders and the applicable Issuing Banks, in any collateral securing the Trademark Secured Debt that does not otherwise constitute Collateral.”

 

6.         Amendment to Section 6.03 of the Credit Agreement (Fundamental Changes).  Section 6.03 of the Credit Agreement is hereby amended by deleting clause (a)(ii) thereof in its entirety and substituting in lieu thereof the following new clause (a)(ii):

 

“(ii) any Subsidiary may merge or amalgamate into or with any Loan Party (other than the Borrower) in a transaction in which a Loan Party continues or is the surviving entity and assumes all obligations of the Loan Party under the Loan Documents ,”

 

7.         Amendments to Section 6.04 of the Credit Agreement (Investments, Loans, Advances, Guarantees and Acquisitions).  Section 6.04 of the Credit Agreement is hereby amended by (i) deleting clause (s) thereof in its entirety and substituting in lieu thereof the following new clause (s):

 

“(s)  [Reserved];”

 

(ii) deleting the word “and” at the end of clause (u) thereof and (iii) inserting at the end of clause (v) thereof:

 

“(w) investments made, directly or indirectly, by the Company or any other Loan Party in Kate Spade JV Holdco with Net Proceeds of the 2012 Add-On Notes and cash on hand in an aggregate amount for all such investments not to exceed $55,000,000, the proceeds of which are used by Kate Spade JV Holdco (x) to purchase all of the outstanding Equity Interests in Kate Spade Japan Co., Ltd. not then held by Kate Spade LLC or Kate Spade JV Holdco (such Equity Interests, the “Acquired JV Interests”) pursuant to the exercise of Kate Spade LLC’s call option under the Kate Spade JV Agreement and (y) to make investments in Kate Spade Japan Co., Ltd.

 

 

the proceeds of which shall be used by Kate Spade Japan Co., Ltd. to repay the shareholder loan owing to Kate Spade LLC’s joint venture partner in Kate Spade Japan Co., Ltd. that is required to be repaid in connection with the exercise of such call option (and the Loan Parties and Kate Spade JV Holdco shall be permitted to make the investments described in clauses (x) and (y) above); and

 

(x) investments by Kate Spade LLC in Kate Spade JV Holdco of the equity interests in Kate Spade Japan Co., Ltd held by Kate Spade LLC.”

 

8.         Amendment to Section 6.05 of the Credit Agreement (Asset Sales).  Section 6.05 of the Credit Agreement is hereby amended by inserting the words “or 6.04(x)” at the end of clause (n) thereof.

 

9.         Representations and Warranties.  The Borrowers hereby represent that as of the Fifth Amendment Effective Date (as defined below) each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents is true and correct in all material respects as if made on and as of such date (it being understood and agreed that any representation or warranty that by its terms is made as of a specific date shall be required to be true and correct in all material respects only as of such specified date), and no Default or Event of Default has occurred and is continuing after giving effect to the amendments contemplated herein.

 

10.        Effectiveness of Amendment.  (a)This Fifth Amendment shall become effective on and as of the date (such date the “Fifth Amendment Effective Date”) of satisfaction of the following conditions:

 

(i)         execution and delivery of this Fifth Amendment by the Borrowers, the Loan Guarantors, the Administrative Agent, the US Collateral Agent, the European Administrative Agent, the European Collateral Agent, the Canadian Administrative Agent, the Canadian Collateral Agent and the Required Lenders;

 

(ii)        no Default or Event of Default shall have occurred and be continuing on the Fifth Amendment Effective Date;

 

(iii)       each of the representations and warranties made by any Loan Party in the Loan Documents shall be true and correct in all material respects on and as of the Fifth Amendment Effective Date as if made on and as of such date except to the extent such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date;

 

(iv)       the 2012 Add-On Notes shall have been issued for aggregate proceeds of not less than $140,000,000 and the Company shall have received the Net Proceeds therefrom; and

 

(v)        receipt by the Administrative Agent of all reasonable and documented out-of-pocket costs and expenses for which invoices have been presented (including the reasonable and documented fees and expenses of one firm of external legal counsel in each relevant jurisdiction).

 

11.        Expenses.  The Borrowers agree to pay and reimburse the Administrative Agent for all its reasonable and documented out-of-pocket costs and expenses incurred in connection with the

 

 

preparation and delivery of this Fifth Amendment, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.

 

12.        Effect.  Except as expressly amended or modified hereby, all of the representations, warranties, terms, covenants and conditions of the Loan Documents shall remain unamended, unmodified and not waived and shall continue to be in full force and effect.  This Fifth Amendment shall not constitute an amendment of any provision of the Credit Agreement or any other Loan Document not expressly referred to herein and shall not be construed as a waiver or consent to any further or future action on the part of the Borrowers that would require a waiver or consent of the Lenders or any Agent.  Except as expressly amended hereby, the provisions of the Credit Agreement are and shall remain in full force and effect.  On and after the Fifth Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof”, or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement after giving effect to this Fifth Amendment.

 

13.        Consent of Guarantors.  Each of the Loan Guarantors hereby consents to this Fifth Amendment, and to the amendments and modifications to the Credit Agreement pursuant hereto and acknowledges the effectiveness and continuing validity of its obligations under or with respect to the Credit Agreement, any Loan Guaranty, any Collateral Document and the Notes Intercreditor Agreement, as applicable, and its liability for the Obligations or Secured Obligations, as applicable, pursuant to the terms thereof and that such obligations are without defense, setoff and counterclaim.

 

14.        Counterparts.  This Fifth Amendment may be executed in any number of counterparts by the parties hereto (including by facsimile or electronic transmission), each of which counterparts when so executed shall be an original, but all the counterparts shall together constitute one and the same instrument.

 

15.        Severability.  Any provision of this Fifth Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

16.        Integration.  This Fifth Amendment and the other Loan Documents represent the entire agreement of the Loan Parties, the Administrative Agent, the European Administrative Agent, the Canadian Administrative Agent and the Lenders with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent, the European Administrative Agent, the Canadian Administrative Agent or any Lender relative to the subject matter hereof not expressly set forth or referred to herein or in the other Loan Documents.

 

17.        GOVERNING LAW.  THIS FIFTH AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS FIFTH AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.

 

	
 
    	
 
    	
BORROWERS
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
FIFTH &   PACIFIC COMPANIES, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ George Carrara
    
	
 
    	
 
    	
Name:
    	
George Carrara
    
	
 
    	
 
    	
Title:
    	
Executive Vice   President, Chief Operating
    
	
 
    	
 
    	
 
    	
Officer and Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
FIFTH &   PACIFIC COMPANIES CANADA INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ George Carrara
    
	
 
    	
 
    	
Name:
    	
George Carrara
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
JUICY COUTURE EUROPE   LIMITED
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Annie Bernstein
    
	
 
    	
 
    	
Name:
    	
Annie Bernstein
    
	
 
    	
 
    	
Title:
    	
Director
    

 

 

SIGNATURE PAGE TO THE FIFTH AMENDMENT

 

 

	
 
    	
LOAN GUARANTORS:
    
	
 
    	
 
    
	
 
    	
BOODLE, INC.
    
	
 
    	
DB NEWCO CORP.
    
	
 
    	
HAVANA LLC
    
	
 
    	
JERG, INC.
    
	
 
    	
JUICY COUTURE, INC.
    
	
 
    	
KATE SPADE LLC
    
	
 
    	
L. C. AUGUSTA, INC.
    
	
 
    	
L.C. CARIBBEAN   HOLDINGS, INC.
    
	
 
    	
L.C. LICENSING, LLC
    
	
 
    	
L.C. SERVICE   COMPANY, INC.
    
	
 
    	
L.C. SPECIAL   MARKETS, INC.
    
	
 
    	
LC LIBRA, LLC
    
	
 
    	
LCI ACQUISITION U.S., INC.
    
	
 
    	
LCI HOLDINGS, INC.
    
	
 
    	
LCI   INVESTMENTS, INC.
    
	
 
    	
ADELINGTON DESIGN GROUP   INC.
    
	
 
    	
ADELINGTON DESIGN SALES   GROUP INC.
    
	
 
    	
FIFTH &   PACIFIC COMPANIES COSMETICS, INC.
    
	
 
    	
LIZ CLAIBORNE   EXPORT, INC.
    
	
 
    	
FIFTH &   PACIFIC COMPANIES FOREIGN HOLDINGS, INC.
    
	
 
    	
LIZ CLAIBORNE JAPAN, INC.
    
	
 
    	
FIFTH & PACIFIC COMPANIES PUERTO RICO, INC.
    
	
 
    	
FIFTH &   PACIFIC COMPANIES SALES, INC.
    
	
 
    	
LIZ CLAIBORNE   SHOES, INC.
    
	
 
    	
LUCKY BRAND   DUNGAREES, INC.
    
	
 
    	
LUCKY BRAND DUNGAREES   STORES, INC.
    
	
 
    	
MONET INTERNATIONAL, INC.
    
	
 
    	
MONET PUERTO RICO, INC.
    
	
 
    	
NONEE I HOLDING, LLC
    
	
 
    	
NONEE I, LLC
    
	
 
    	
SEGRETS, INC.
    
	
 
    	
SKYLARK SPORT MARKETING   CORPORATION
    
	
 
    	
WESTCOAST CONTEMPO   PROMENADE, INC.
    
	
 
    	
WESTCOAST CONTEMPO   RETAIL, INC.
    
	
 
    	
WESTCOAST CONTEMPO   (U.S.A.) INC.
    
	
 
    	
KATE SPADE PUERTO RICO, INC.
    
	
 
    	
LCCI HOLDINGS LLC
    
	
 
    	
WCFL HOLDINGS LLC
    

 

 

	
 
    	
 
    	
By
    	
/s/ George Carrara
    
	
 
    	
 
    	
Name:
    	
George Carrara
    
	
 
    	
 
    	
Title:
    	
Director
    

 

 

SIGNATURE PAGE TO THE FIFTH AMENDMENT

 

 

	
 
    	
 
    	
JUICY COUTURE CANADA   INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Nicholas Rubino
    
	
 
    	
 
    	
Name:
    	
Nicholas Rubino
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
KATE SPADE CANADA INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Nicholas Rubino
    
	
 
    	
 
    	
Name:
    	
Nicholas Rubino
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
LUCKY BRAND DUNGAREES   CANADA INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Nicholas Rubino
    
	
 
    	
 
    	
Name:
    	
Nicholas Rubino
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
WESTCOAST CONTEMPO   FASHIONS LIMITED
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Nicholas Rubino
    
	
 
    	
 
    	
Name:
    	
Nicholas Rubino
    
	
 
    	
 
    	
Title:
    	
Director
    

 

 

SIGNATURE PAGE TO THE FIFTH AMENDMENT

 

 

	
 
    	
 
    	
Signed and delivered as   a deed for and on behalf of
    
	
 
    	
 
    	
JUICY COUTURE IRELAND   LIMITED
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Annie Bernstein
    
	
 
    	
 
    	
Name:
    	
Annie Bernstein
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
in the presence of:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/ Chris DiNardo
    
	
 
    	
 
    	
(Witness’ Signature)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5901 West Side Avenue,   North Bergen, NJ
    
	
 
    	
 
    	
(Witness’ Address)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney
    
	
 
    	
 
    	
(Witness’ Occupation)
    

 

 

SIGNATURE PAGE TO THE FIFTH AMENDMENT

 

 

	
 
    	
 
    	
LIZ CLAIBORNE EUROPE
    
	
 
    	
 
    	
KATE SPADE UK LIMITED
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Nicholas Rubino
    
	
 
    	
 
    	
Name:
    	
Nicholas Rubino
    
	
 
    	
 
    	
Title:
    	
Director
    

 

 

SIGNATURE PAGE TO THE FIFTH AMENDMENT

 

 

	
 
    	
 
    	
JPMORGAN CHASE BANK,   N.A., as Administrative
    
	
 
    	
 
    	
Agent, US Collateral   Agent and Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Scott Troy
    
	
 
    	
 
    	
Name:
    	
Scott Troy
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

 

SIGNATURE PAGE TO THE FIFTH AMENDMENT

 

 

	
 
    	
 
    	
J.P. MORGAN EUROPE   LIMITED, as European
    
	
 
    	
 
    	
Administrative Agent   and European Collateral Agent
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Tim Jacob
    
	
 
    	
 
    	
Name:
    	
Tim Jacob
    
	
 
    	
 
    	
Title:
    	
Senior Vice President
    

 

 

SIGNATURE PAGE TO THE FIFTH AMENDMENT

 

 

	
 
    	
 
    	
JPMORGAN CHASE BANK,   N.A., TORONTO 
    
	
 
    	
 
    	
BRANCH, as Canadian   Administrative Agent and
    
	
 
    	
 
    	
Canadian Collateral   Agent
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Agostino A.   Marchetti
    
	
 
    	
 
    	
Name:
    	
Agostino A. Marchetti
    
	
 
    	
 
    	
Title:
    	
Senior Vice President
    

 

 

SIGNATURE PAGE TO THE FIFTH AMENDMENT

 

 

	
 
    	
 
    	
SUN TRUST BANK, as   Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Angela Leake
    
	
 
    	
 
    	
Name:
    	
Angela Leake
    
	
 
    	
 
    	
Title:
    	
Director
    

 

 

SIGNATURE PAGE TO THE FIFTH AMENDMENT

 

 

	
 
    	
 
    	
GENERAL ELECTRIC   CAPITAL CORPORATION, as
    
	
 
    	
 
    	
Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Peter F. Crispino
    
	
 
    	
 
    	
Name:
    	
Peter F. Crispino
    
	
 
    	
 
    	
Title:
    	
Duly Authorized   Signatory
    

 

 

SIGNATURE PAGE TO THE FIFTH AMENDMENT

 

 

	
 
    	
 
    	
BANK OF AMERICA, N.A.   as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Christine   Hutchinson
    
	
 
    	
 
    	
Name:
    	
Christine Hutchinson
    
	
 
    	
 
    	
Title:
    	
Director
    

 

 

SIGNATURE PAGE TO THE FIFTH AMENDMENT

 

 

	
 
    	
 
    	
Wells Fargo Capital   Finance, LLC, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Reza Sabahi
    
	
 
    	
 
    	
Name:
    	
Reza Sabahi
    
	
 
    	
 
    	
Title:
    	
Authorized Signatory
    

 

 

SIGNATURE PAGE TO THE FIFTH AMENDMENT

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