Document:

Exhibit 4.1

 

FIRST SUPPLEMENTAL INDENTURE

 

This First Supplemental Indenture and Guarantee, dated as of March 30, 2012 (this “Supplemental Indenture” or “Guarantee”), among WOODWIND & BRASSWIND, INC. (the “Guarantor”), Guitar Center, Inc. (together with its successors and assigns, the “Company”), each other then-existing Guarantor under the Indenture referred to below, and The Bank of New York Mellon Trust Company, N.A., as Trustee under such Indenture.

 

W I T N E S S E T H:

 

WHEREAS, the Company, the Guarantor and the Trustee have heretofore executed and delivered an Indenture, dated as of March 2, 2011 (as amended, supplemented, waived or otherwise modified, the “Indenture”), providing for the issuance of an unlimited aggregate principal amount of 11.50% Senior Notes due 2017 of the Company (the “Notes”);

 

WHEREAS, Section 4.17 of the Indenture provides that the Company will cause (i) each of its Domestic Subsidiaries (other than any Unrestricted Subsidiary) that incurs any Indebtedness (subject to certain exceptions as set forth in the Indenture) and (ii) each Restricted Subsidiary (other than any Foreign Subsidiary) that guarantees any Indebtedness of the Company or the Guarantor, in each case, within 10 Business Days of such incurrence of any such Indebtedness or guarantee of such Indebtedness, to execute and deliver to the Trustee a Guarantee pursuant to which such Restricted Subsidiary will unconditionally Guarantee, on a joint and several basis, the full and prompt payment of the principal of, premium, if any, and interest on the Notes and all other obligations under the Indenture on the same terms and conditions as those set forth in the Indenture;

 

WHEREAS, pursuant to Section 9.1 of the Indenture, the Trustee and the Company are authorized to execute and deliver this Supplemental Indenture to amend the Indenture, without the consent of any Holder; and

 

WHEREAS, all acts and requirements necessary to make this Supplemental Indenture the legal, valid and binding obligation of each of the Company and the Guarantor have been done;

 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guarantor, the Company and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

 

ARTICLE I

 

Definitions

 

SECTION 1.1  Defined Terms.  As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as therein defined, except that the term “Holders” in this Guarantee shall refer to the term “Holders” as defined in the Indenture and the Trustee acting on behalf or for the benefit of such Holders.  The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

 

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ARTICLE II

 

Agreement to be Bound; Guarantee

 

SECTION 2.1  Agreement to be Bound.  The Guarantor hereby becomes party to the Indenture as Guarantor and as such shall have all of the rights and be subject to all of the obligations and agreements of a Guarantor under the Indenture.  The Guarantor agrees to be bound by all of the provisions of the Indenture applicable to a Guarantor and to perform all of the obligations and agreements of a Guarantor under the Indenture.

 

SECTION 2.2  Guarantee.  The Guarantor hereby fully, unconditionally and irrevocably guarantees, as primary obligor and not merely as surety, jointly and severally with each other Guarantor, to each Holder and the Trustee, the full and punctual payment when due, whether at maturity, by acceleration, by redemption or otherwise, of all obligations of the Company and/or each other Guarantor pursuant to Indenture (including without limitation Article XI).

 

ARTICLE III

 

Miscellaneous

 

SECTION 3.1   Notices.  All notices and other communications to the Guarantor shall be given as provided in the Indenture to the Guarantors, at their respective addresses set forth below, with a copy to the Company as provided in the Indenture for notices to the Company.

 

Woodwind & Brasswind, Inc.

5795 Lindero Canyon Road
 Westlake Village, CA  91362

Fax: (818) 735-8833
 Attention: General Counsel

 

SECTION 3.2   Parties.  Nothing expressed or mentioned herein is intended or shall be construed to give any Person, firm or corporation, other than the Holders and the Trustee, any legal or equitable right, remedy or claim under or in respect of this Supplemental Indenture or the Indenture or any provision herein or therein contained.

 

SECTION 3.3   Governing Law.  This Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of New York.

 

SECTION 3.4   Severability Clause.  In case any provision in this Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and such provision shall be ineffective only to the extent of such invalidity, illegality or unenforceability.

 

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SECTION 3.5   Ratification of Indenture; Supplemental Indentures Part of Indenture.  Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder heretofore or hereafter authenticated and delivered shall be bound hereby.  The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture.

 

SECTION 3.6   Counterparts.  The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement.

 

SECTION 3.7   Headings.  The headings of the Articles and the sections in this Guarantee are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

 

SECTION 3.8  Trustee.  The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture.  The recitals herein are deemed to be those of the Company and the Guarantor and not of the Trustee.

 

[Signatures on following page]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

 

	
 
    	
WOODWIND &   BRASSWIND, INC.,
    
	
 
    	
as   a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
 
    	
/s/ Erick Mason
    
	
 
    	
 
    	
Name:   
    	
Erick   Mason
    
	
 
    	
 
    	
Title:   
    	
EVP
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
THE   BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
 
    	
/s/ Raymond Torres
    
	
 
    	
 
    	
Name:   
    	
Raymond   Torres
    
	
 
    	
 
    	
Title:   
    	
Senior   Associate
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
GUITAR   CENTER, INC.
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
 
    	
/s/ Erick Mason
    
	
 
    	
 
    	
Name:   
    	
Erick   Mason
    
	
 
    	
 
    	
Title:   
    	
EVP
    
						

 

4Exhibit 10.1

 

EXECUTION VERSION

 

ABL ADDITIONAL COMMITMENT LENDER JOINDER AGREEMENT

 

This ABL ADDITIONAL COMMITMENT LENDER JOINDER AGREEMENT (this “Joinder Agreement”) is made as of March 16, 2012, by and among GENERAL ELECTRIC CAPITAL CORPORATION (the “New Lender”), GUITAR CENTER, INC. (the “Lead Borrower”), GUITAR CENTER STORES, INC. and MUSICIAN’S FRIEND, INC. (together with the Lead Borrower, the “Borrowers”) and JPMORGAN CHASE BANK, N.A., as Administrative Agent (the “Administrative Agent”).

 

WITNESSETH:

 

A.            Reference is made to that certain Credit Agreement, dated as of October 9, 2007 (as amended, modified, supplemented or restated and in effect from time to time, the “ABL Credit Agreement”), by, among others, (i) the Lead Borrower, for itself and in conjunction with its capacity as Lead Borrower as agent for the other Borrowers, (ii) the other Loan Parties, (iii) the Lenders named therein (collectively, the “Lenders”), (iv) the Administrative Agent and (v) JPMorgan Chase Bank, N.A., as Collateral Agent. All capitalized terms used herein, and not otherwise defined herein, shall have the meanings assigned to such terms in the ABL Credit Agreement;

 

B.            Subject to the terms and conditions of the ABL Credit Agreement, pursuant to Section 2.02 of the ABL Credit Agreement, the Lead Borrower may request Commitment Increases to be made by one or more Additional Commitment Lenders;

 

C.            The New Lender desires to become an Additional Commitment Lender and to become a party to, and to be bound by the terms of, the ABL Credit Agreement and the other Loan Documents in the same capacity and to the same extent as the Lenders thereunder and to provide an Extended Commitment in the amount of $35,000,000 (the “Commitment Increase Amount”);

 

D.            Subject to the terms and conditions of the ABL Credit Agreement, pursuant to Section 2.15 of the ABL Credit Agreement, the Lead Borrower may in part reduce the Commitments, which such reduction shall be applied to Extended Commitments or Non-Extended Commitments, in either case, pro rata; and

 

E.            The Lead Borrower desires to permanently reduce the Non-Extended Commitments pro rata in an aggregate amount equal to the Commitment Increase Amount (such reduction, the “Commitment Reduction”).

 

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

 

1.        Additional Commitment Lender Joinder; Acknowledgements and Agreements of the New Lender.

 

a.              The New Lender hereby agrees to provide an Extended Commitment in an amount equal to the Commitment Increase Amount, on the terms and subject to the conditions hereof. The Commitment Increase provided herein shall be subject to the provisions of the ABL Credit Agreement and the other Loan Documents. For the avoidance of doubt, the New Lender shall be an Extended Lender and shall have an Extended Commitment in an amount equal to $35,000,000, and any Credit Extensions issued pursuant to such Extended Commitment shall have the same terms as the Extended Credit Extensions, including, but not limited to, interest rate and maturity.

 

 

b.              New Lender to be a Lender. The New Lender acknowledges and agrees that upon its execution of this Joinder Agreement it shall, on and as of the date hereof (the “Commitment Increase Date”), become a “Lender” under, and for all purposes of, the ABL Credit Agreement and the other Loan Documents, shall be subject to and bound by the terms thereof and shall perform all the obligations of and shall have all rights of a Lender thereunder.

 

2.        Representations and Warranties of the New Lender. The New Lender (a) confirms that it has received a copy of the ABL Credit Agreement, together with copies of the financial statements referred to in Section 5.01 thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Joinder Agreement; (b) agrees that it will, independently and without reliance upon the Agents or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the ABL Credit Agreement; (c) appoints and authorizes the Agents or their successors to take such action as agent on its behalf and to exercise such powers under the ABL Credit Agreement as are delegated to the Agents by the terms thereof, together with such powers as are reasonably incidental thereto; (d) agrees that it will perform in accordance with their terms all of the obligations which, by the terms of the ABL Credit Agreement, are required to be performed by it as a Lender; (e) specifies as its lending office (and address for notices) the office set forth beneath its name on the signature pages hereof; and (f) agrees that if the New Lender is a Foreign Lender entitled to an exemption from or reduction in withholding tax it shall deliver to the Lead Borrower and the Administrative Agent two copies of either United States Internal Revenue Service Form W-8BEN (claiming a treaty benefit) or Form W-8ECI, or any subsequent versions thereof or successors thereto, or, in the case of a Foreign Lender claiming exemption from or reduction in U.S. Federal withholding tax under Section 871(h) or 881(c) of the Code with respect to payments of “portfolio interest”, (i) a Form W-8BEN, or any subsequent versions thereof or successors thereto and (ii) a certificate representing that such Foreign Lender is not (A) a bank for purposes of Section 881(c) of the Code, (B) is not a 10-percent shareholder (within the meaning of Section 871 (h)(3)(B) of the Code) of any Loan Party and (C) is not a controlled foreign corporation related to the Loan Parties (within the meaning of Section 864(d)(4) of the Code)).

 

3.        Representations and Warranties of the Borrowers.

 

a.              The Borrowers hereby represent and warrant that each of the representations and warranties made by any Loan Party in the Loan Documents, as amended, is true and correct in all material respects on and as of the date hereof, as if made on and as of such date (except that any representation or warranty which by its terms is made as of an earlier date shall be true and correct in all material respects as of such earlier date).

 

b.        As of the date hereof, the Borrowers hereby represent and warrant that no Default or Event of Default under the ABL Credit Agreement or any other Loan Document exists or will arise from the transactions contemplated by this Joinder Agreement.

 

 

4.        Acknowledgement of the Administrative Agent. The Administrative Agent hereby acknowledges receipt of notice from the Lead Borrower pursuant to Section 2.15 of the ABL Credit Agreement at least two Business Days prior to the date hereof of its desire to reduce permanently the Non-Extended Commitments by $35,000,000 pro rata, such reduction to be effective as of the Commitment Increase Date.

 

5.        Conditions Precedent to Effectiveness. This Joinder Agreement and the Commitment Increase contemplated hereby shall become effective upon satisfaction or waiver of the following conditions precedent:

 

a.        The Administrative Agent shall have received executed counterparts of this Joinder Agreement, duly executed by the Borrowers, the Administrative Agent and the New Lender (and consented to by the Issuing Banks);

 

b.        The Lead Borrower shall have paid to the Administrative Agent for the account of the New Lender an upfront fee in an amount equal to 1.00% of the Commitment Increase Amount;

 

c.         The Lead Borrower shall have paid all such fees to the Administrative Agent as have been separately agreed by the Lead Borrower and the Administrative Agent;

 

d.        The Administrative Agent shall have received an Acknowledgement and Consent, substantially in the form of Exhibit A hereto, duly executed by the Loan Parties;

 

e.         The Commitment Reduction shall occur substantially simultaneously herewith; and 

 

f.          A Revolving Credit Note (to the extent requested) shall have been issued to the New Lender, to be in conformity with the requirements of Section 2.07 of the ABL Credit Agreement (with appropriate modification).

 

6.        Miscellaneous.

 

a.        This Joinder Agreement may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Joinder Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart.

 

b.        This Joinder Agreement expresses the entire understanding of the parties with respect to the transactions contemplated hereby. No prior negotiations or discussions shall limit, modify, or otherwise affect the provisions hereof.

 

c.         Any determination that any provision of this Joinder Agreement or any application hereof is invalid, illegal or unenforceable in any respect and in any instance shall not effect the validity, legality, or enforceability of such provision in any other instance, or the validity, legality or enforceability of any other provisions of this Joinder Agreement.

 

 

d.        The Lead Borrower agrees to pay or reimburse the Administrative Agent for all Credit Party Expenses incurred in connection with the preparation, negotiation, execution and delivery of this Joinder Agreement, any other documents prepared in connection herewith and the transactions contemplated hereby, in accordance with the terms of the ABL Credit Agreement.

 

e.         THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

[SIGNATURE PAGES FOLLOW]

 

 

IN WITNESS WHEREOF, each of the undersigned has caused this Joinder Agreement to be duly executed and delivered by its proper and duly authorized officer as of the date set forth below.

 

	
 
    	
GENERAL ELECTRIC CAPITAL
    
	
 
    	
CORPORATION,
    
	
 
    	
 
    
	
 
    	
as   New Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/s/ Peter F. Crispino
    
	
 
    	
 
    
	
 
    	
Name:   
    	
Peter   F. Crispino
    
	
 
    	
Title:   
    	
Duly   Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Notice   Address: 
    	
401   Merritt 7
    
	
 
    	
 
    	
Norwalk,   CT 06851
    
	
 
    	
Attention:   
    	
Peter   F. Crispino
    
	
 
    	
Telephone:   
    	
203-956-4251
    
	
 
    	
Facsimile   
    	
203-956-4098
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JPMORGAN CHASE  BANK, N.A.,
    
	
 
    	
 
    
	
 
    	
as   Administrative Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/s/ Sarah L. Freedman
    
	
 
    	
 
    	
 
    
	
 
    	
Name:    
    	
Sarah   L. Freedman
    
	
 
    	
Title:   
    	
Executive   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GUITAR CENTER, INC., as Lead Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/s/ Erick Mason
    
	
 
    	
 
    	
 
    
	
 
    	
Name:  
    	
Erick   Mason
    
	
 
    	
Title:  
    	
EVP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GUITAR CENTER STORES, INC., as a Borrower
    
	
 
    	
 
    
	
 
    	
By:   
    	
 
    	
/s/ Erick Mason
    
	
 
    	
 
    
	
 
    	
Name:  
    	
Erick   Mason
    
	
 
    	
Title:  
    	
EVP
    
					

 

[Signature Page to Joinder Agreement]

 

 

	
 
    	
MUSICIAN’S FRIEND, INC., as a Borrower
    
	
 
    	
 
    
	
 
    	
By:   
    	
 
    	
/s/ Erick Mason
    
	
 
    	
 
    	
 
    
	
 
    	
Name:   
    	
Erick   Mason
    
	
 
    	
Title:   
    	
EVP
    
	
 
    	
 
    
	
 
    	
 
    
	
Consented to by:
    	
 
    
	
 
    	
 
    
	
JPMORGAN CHASE BANK, N.A., as Issuing   Bank
    
	
 
    	
 
    
	
By:
    	
 
    	
/s/ Sarah L. Freedman
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:   
    	
Sarah   L. Freedman
    	
 
    
	
 
    	
T’itle:   
    	
Executive   Director
    	
 
    
	
 
    	
 
    	
 
    
	
WELLS   FARGO BANK, NATIONAL ASSOCIATION., as Issuing   Bank
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
/s/ Danielle Baldinelli
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:   
    	
Danielle   Baldinelli
    	
 
    
	
 
    	
T’itle:   
    	
Vice   President
    	
 
    

 

[Signature Page to Joinder Agreement]

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