Document:

ex107.htm

ACT LICENSE AND ACCESS AGREEMENT

 

THIS ACT LICENSE AND ACCESS AGREEMENT (the “Agreement”) is between Advanced Credit

Technologies, Inc., a Nevada corporation, (“ACT”) whose principal business address is 740 South Federal Highway,

Suite #606, Pompano Beach, Florida 33062, and the undersigned (David Anthony Insurance Agency 7370 College

Parkway Suite #214 Fort Myers, FL. 33907 ). ACT has developed a website called( mycmtool to be replaced in

Oct. 2011 )with TURNSCOR.COM and TURNSCORPRO.COM (the “Websites”) that enables a user thereof to

learn about credit, credit ratings, and credit repair processes. Company desires for ACT to provide customers of

the Company access to the Website; and ACT agrees to provide customers of the Company access to the Website

subject the terms and conditions of this Agreement. In consideration of the mutual of the undertakings hereunder

the parties agrees as follows:

 

1. Scope and Purpose of Agreement. Company is in the business of selling and/or leasing goods and/

or services, and from time to time its customers secure these goods or services on a credit basis. As such, a

customer (“Customer” or “Customers”) of the Company from time to time need to have his, her or its credit

repaired. By entering into this Agreement, Company shall have a limited right to offer to a Customer access to the

Website. Accordingly, this Agreement sets forth the terms and conditions pursuant to which ACT will host the

Website through which a Customer that has been selected by the Company shall be permitted to use for his, her or

its sole benefit the credit repair services made available by and through what is known as the ACT Back-office link

on the Website. Notwithstanding any provision herein to the contrary, the Company acknowledges and agrees that a

Customer shall be permitted to use the Website only in connection with his, her or its credit needs, and no Customer

shall use the Website on behalf of any third party.

 

2. Ownership. The Website is owned and operated by ACT. All right, title and interest in and to the

materials provided on the Website, including but not limited to, the information, documents, logos, graphics, sounds,

and images thereon (herein the ”Licensed Materials”) are either owned by ACT, or by its respective third party

authors, developers or vendors (“Third Party Providers”). ACT retains the sole right and control over the content

and conduct of transactions over the Website. Except as otherwise expressly provided by ACT, none of the

Licensed Materials may be copied, reproduced, republished, downloaded, uploaded, posted, displayed transmitted or

distributed in any way without the express written permission of an officer of ACT in each instance; and except as

otherwise expressly set forth herein, nothing on the Website shall be construed to confer to Company or to a

Customer any license of any of ACT’s intellectual property rights, whether by estoppel, implication, or otherwise.

Any unauthorized use by the Company of any Licensed Materials contained on the Website may violate copyright

laws, privacy laws and communications regulations and statutes. ACT does not sell, license, lease or otherwise

provide any of the Licensed Materials other than those specifically identified herein as being provided by ACT.

Any rights not expressly granted herein are reserved by ACT. Except as may otherwise be expressly set forth in this

Agreement or in any schedule or exhibit attached hereto and made a part hereof, the Company may not assign,

sublicense, relicense, lease, sell, barter or distribute the Agreement or its right to use the Website in any way or for

any purpose without the prior written consent of an officer of the Company in each instance, which consent can be

withheld for any reason.

 

3. Links to Third Party Sites. The Website may contain links to websites controlled by parties other

than ACT (“Third Party Sites”). ACT is not responsible for and does not endorse or accept any responsibility for

the availability, the contents, the products, the services or the use of Third Party Sites or any website accessed from

the Third Party Sites, or any changes or updates to such Third Party Sites. ACT makes no guarantees about the

content or quality of the products or services provided by such Third Party Sites. ACT is not responsible for any

form of transmission received from any of the Third Party Sites of the products and/or services promoted or

marketed thereunder. ACT is providing these links hereunder as a convenience only, and the inclusion of any link

does not imply endorsement by ACT of any of the Third Party Sites. The Company acknowledges and agrees that

ACT is not responsible for any loss or damage of any sort the Company or any user thereof may incur in dealing

with any of the Third Party Sites. The Company shall contact the site administrator for the applicable Third Part

Site if the Company has any concerns regarding such links or the content located on a Third Party Site.

 

  

  

  

4. Representations and Warranties of Company. Company represents and warrants that: (a) the

execution and subsequent delivery of this Agreement by the Company to ACT constitutes a valid and binding

agreement of the Company; (b) the Company will comply with all applicable laws and regulations if and/or when

any of its employees, agents or representatives access and/or uses the Website; (c) any information provided to ACT

by the Company pursuant to this Agreement is and shall be true, complete and not misleading; (d) the Company will

not attempt to alter or modify any part of the Website or use or knowingly or intentionally permit the use the

Website other than for its intended purpose; and (e) the Company will not attempt to collect any personally

identifiable information, including account names of other licensees or users of the Website.

 

5. Company’s Additional Covenants. Company covenants and agrees that the Company will not: (a)

use the Website to communicate with other users of the Website; (b) use the Website in any way that may damage,

disable, overburden, or impair the ACT’s services or networks, or interfere with any other party’s use and enjoyment

of the Website; or (c) try to gain unauthorized access through the Website or through any of the Third Party Sites to

any services, user accounts, computer systems or network through hacking, password mining or any other means.

 

6. Certain Rights and Obligations of Company.

a. Subject to the terms and conditions of this Agreement, ACT grants to Company the

nontransferable, nonexclusive right to promote the Website to a Customer, and to authorize access to

the Website to a Customer for the sole purpose of allowing a Customer to repair his, her or its own

credit standing (the “Permitted Use”) consistent with the terms and conditions of this Agreement and

any schedules or exhibits attached hereto and made a part hereof. Access to the Website shall be made

available with confidential password(s) (“Passwords”) provided by the Company to a Customer. Company

shall not authorize or otherwise permit any Customer to distribute, modify or reproduce the Website in any

manner that is inconsistent with the terms and conditions of this Agreement.

b. Company shall have the exclusive authority and responsibility for authorizing a Customer

to have access to the Website, including ensuring that Password(s) are kept secure. Company shall not

disclose Password(s) to any third party other than a Customer, as necessary.

c. Company covenants and agrees that access to the Website by any Customer will only be

granted in strict compliance with the terms of this Agreement. In the event of any default under or breach

of the terms and conditions this Agreement by any Customer, in addition to all other rights and remedies

available to ACT, ACT may enforce directly against Company all terms and conditions of this Agreement

and request Company to enforce the terms and conditions of this Agreement against any Customer.

d. The Website and all data and information available from or contained therein shall be

used solely for repairing the credit standing of a Customer. Company shall not, and Company shall ensure

that no Customer, shall change, modify, alter or amend the Website, including any notices or disclaimers

contained therein. Company acknowledges and agrees that use of the Website and any other data or

information obtained by a Customer is at such Customer’s own discretion and risk, and ACT assumes no

liability of any kind associated with the use thereof. Company further acknowledges and agrees that the

Website and any other data or information obtained by a Customer is solely for use by such Customer for

the Permitted Use and shall not be reproduced, shared or distributed to any other person or entity.

 

7. Term; Termination. The term of this Agreement shall commence on the effective date set forth in

the signature section of this Agreement (the “Effective Date”) and shall continue until terminated as provided

herein. Either party hereto may terminate this Agreement, with or without cause at any time, upon 60 days’ prior

written notice to the other. Notice may be transmitted electronically and sender shall bear the burden of proof of

delivery. Notices sent electronically shall be deemed delivered the next Business Day (as defined herein) after

transmission. Furthermore, ACT may suspend the Website, without notice and credit, in the event that, in the

exercise of its reasonable discretion, ACT believes that the Company has breached its or their obligations pursuant

to this Agreement, and ACT may keep such service suspended until the breach is remedied to the satisfaction of

ACT. Upon termination of this Agreement, all rights granted to the Company hereunder shall terminate and the

parties hereto shall have no further or continuing obligation to each other, except as accrued by Company prior to

termination of this Agreement. The parties hereto acknowledge and understand that the termination of this

Agreement shall not automatically terminate the right of a Customer to continue to have access to the Website

whose rights were granted prior to the effective termination date of this Agreement. The parties hereto further

acknowledge and understand that any Customer’s right to have access to the Website shall be governed by the terms

and conditions of the license agreement each such Customer executes and delivers to ACT via the Website as a

condition to gaining initial access to the ACT Back-office link on the Website.

 

  

  

  

8. Modification of Website; Restrictions. Notwithstanding any provision herein to the contrary,

ACT reserves the right to modify the Website at any time during the term of this Agreement. Company shall not

directly or indirectly, through any third party: (a) disassemble, decompile or reverse engineer the Website; (b) rent,

sublease, sublicense, market or otherwise distribute the Website (in whole or in part) to any third party, except as

expressly permitted herein; (c) adapt or modify the Website in any way, or create any derivative works therefrom; (d)

use the Website for the benefit of any third parties not authorized herein; or (e) avoid, disable or circumvent any

access control, process or procedure established with respect to the Website.

 

9. Usage Policies. Company shall comply with any and all ACT terms and conditions, privacy

policies and security policies that are made available to Company by ACT through postings to the Website or

otherwise, as such terms and conditions and policies may be amended from time to time (collectively, the “Usage

Policies”).

 

10. Fees. For each full or partial calendar month during the term of this Agreement the referral

CLIENT shall pay ACT a one time set up fee of (“$TBD per month per authorized user”). For all Customers that

the Company desires to permit access to the Website for the Permitted Use. Customer Access Fees are due in

Advance. All amounts due hereunder shall be paid to ACT on or before the 10th day of each month. If the 10th day

of any month is not a Business Day, then the Company shall pay all amounts due hereunder on the immediately

preceding Business Day. For purposes of this Agreement, a “Business Day” means any day other than a Saturday,

Sunday or national legal holiday. Company agrees to pay all current and future sales, use, transfer and other taxes

and duties, whether state, federal, national or international, however designated, including value added taxes and

similar taxes, which are levied or imposed because of the transactions contemplated by this Agreement; excluding,

however, taxes on or measured by ACT’s income. Company agrees that it will not pass through to a Customer,

either directly or indirectly, any of the Monthly Access Fees or Customer Access Fees due hereunder by the

Company to ACT.

 

11 Method of Payment. All payments of any funds due us under this Agreement shall be paid in

immediately available funds in United States currency either by (a) direct debit, electronic transfer from Company’s

bank account to an account specified by ACT; (b) credit card; or (c) by such other means as expressly permitted by

an officer of ACT in writing. ACT will invoice the Company monthly for amounts due under this Agreement

provided, however, that the failure to issue an invoice shall not relieve Company from its obligation to pay the

amounts due hereunder. If ACT invoices the Company electronically, the invoice shall be deemed delivered the

next Business Day after transmission.

 

12. Intellectual Property Rights. Company agrees that the Website and all other proprietary materials

of ACT and deliverables of ACT hereunder, and all copies, versions and derivatives thereof, whether prepared by

ACT individually or jointly with others (collectively, the “ACT IP”), are and at all times shall remain the sole and

exclusive property of ACT or its suppliers, as the case may be, including all worldwide intellectual property and

proprietary rights that are embodied in, related to or represented by the ACT IP. Company acknowledges and agrees

that it is not granted or vested with any right, license or ownership in or to any of ACT’s trademarks, trade names,

service marks or logos. The Company agrees that any breach of its obligations regarding intellectual property is

likely to result in irreparable harm to ACT for which there is no adequate remedy at law. Therefore, in the event of

any breach or threatened breach of the Company’s obligation regarding intellectual property, ACT will be entitled to

seek immediate injunctive relief in addition to its other available remedies under this Agreement or under applicable

law.

 

  

  

  

13. Warranties and Disclaimer. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS

AGREEMENT, ACT DISCLAIMS ALL WARRANTIES OF ANY KIND, WHETHER EXPRESSED, IMPLIED

OR STATUTORY, INCLUDING WITHOUT LIMITATION THE WARRANTIES OF MERCHANTABILITY,

FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT. ACT DOES NOT

WARRANT OR GUARANTEE (a) THE ACCESSIBILITY AND FUNCTION OF THE WEBSITE; (b) THAT

THE WEBSITE WILL BE UNINTERRUPTED, ERROR-FREE OR COMPLETELY SECURE; OR (c) THAT

ERRORS OR DEFECTS WILL BE CORRECTED. ACT SHALL HAVE NO LIABILITY TO ANYONE FOR

ANY INACCURACY, ERROR OR OMISSION OR FOR ANY CONTENT OR INFORMATION CONTAINED

IN OR MADE AVAILABLE THROUGH THE WEBSITE. FURTHERMORE, ACT MAKES NO WARRANTY

THAT: (i) THE WEBSITE OR THE MATERIALS WILL MEET THE COMPANY’S REQUIREMENTS OR

NEEDS OR WILL MEET THE REQUIREMENTS OR NEEDS OF A CUSTOMER OR ANY PERSON

AUTHORIZED BY THE COMPANY TO USE OR HAVE ACCESS TO THE WEBSITE PURSUANT TO THIS

AGREEMENT; (ii) THE WEBSITE OR THE MATERIALS REFERRED TO THEREIN WILL BE AVAILABLE

ON AN UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE BASIS; (iii) THAT THE RESULTS THAT

MAY BE OBTAINED FROM THE USE OF THE WEBSITE, OR ANY MATERIALS OFFERED THROUGH

THE WEBSITE, WILL BE ACCURATE OR RELIABLE; OR (iv) THAT THE QUALITY OF ANY PRODUCTS,

SERVICES, INFORMATION, OR OTHER MATERIAL PURCHASED OR OBTAINED BY THE COMPANY

OR BY A CUSTOMER THROUGH THE WEBSITE OR IN RELIANCE ON THE MATERIALS WILL MEET

THE EXPECTATIONS OR NEEDS OF THE COMPANY OR WILL MEET THE EXPECTATIONS OR NEEDS

OF ANY CUSTOMER OR OF ANY OTHER PERSON AUTHORIZED BY THE COMPANY TO USE AND/OR

HAVE ACCESS TO THE WEBSITE PURSUANT TO THIS AGREEMENT.

 

14. Indemnification.

(a) Company shall defend, indemnify and hold ACT and its directors, officers, and

employees (each, an “ACT Party”) harmless from and against any and all claims, demands, losses,

damages, liabilities, settlement amounts, costs or expenses whatsoever (including reasonable attorneys’

fees and costs and court costs) arising from or relating to any claim, action or proceeding made or brought

against ACT or an ACT Party by any third party, including without limitation a Customer, arising out of or

in connection with: (i) the use by Company or any Customer of the Passwords or the Website in violation

of this Agreement; (ii) the acts of the Company in contravention of the terms and conditions of this

Agreement; (iii) any conduct of Company or any Customer relating to this Agreement including, without

limitation, misuse of any Password(s); or (iv) Company’s or any Customer’s negligence or willful

misconduct; or (v) any other services provided by Company to a Customer.

(b) ACT shall defend, indemnify and hold Company and its directors, officers and

employees, (each, a “Company Party”) harmless from and against any and all claims, demands, losses,

damages, liabilities, settlement amounts, costs or expenses whatsoever (including reasonable attorneys’

fees and costs and court costs) arising from or relating to any claim, action or proceeding made or brought

against Company or a Company Party by any third party, including without limitation a Customer arising

out of or in connection with a claim that the Website infringes a United States patent, copyright, trademark

or trade secret or other United States intellectual property rights of a third party.

 

15. Limitation of Liability. UNDER NO CIRCUMSTANCES WILL ACT BE LIABLE TO THE

COMPANY OR ANY CUSTOMER FOR LOSS OF PROFITS, LOSS OF BUSINESS OR ANY OTHER

INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN ANY WAY

RELATED TO THE PERFORMANCE OR BREACH OF THIS AGREEMENT BY ACT. THE FOREGOING

LIMITATIONS AND EXCLUSIONS SHALL NOT APPLY TO ANY LOSSES OR DAMAGES ARISING OUT

OF THIRD PARTY LOSSES COVERED BY ACT’S INDEMNIFICATION OBLIGATIONS. IF COMPANY’S

OR A CUSTOMER’S USE OF THE WEBSITE OR USE OF THE MATERIALS FROM THE WEBSITE

RESULTS IN THE NEED FOR SERVICING, REPAIR OR CORRECTION OF EQUIPMENT OR DATA,

COMPANY IS SOLELY RESPONSIBLE FOR ANY COSTS THEREOF.

 

16. USE OF WEBSITE. ANY MATERIALS OBTAINED THROUGH THE USE OF THE

WEBSITE IS DONE AT COMPANY’S OWN DISCRETION AND RISK. COMPANY ACKNOWLEDGES AND

UNDERSTANDS THAT ACT DID NOT AND DOES NOT GUARANTEE OR REPRESENT THAT USE OF

THE WEBSITE WILL BE SUCCESSFUL AND THE COMPANY HAS NOT RELIED UPON ANY PROMISE,

ASSURANCE OR UNDERSTANDING NOT EXPRESSLY SET FORTH IN THESE TERMS AND

CONDITIONS; AND THE INFORMATION CONTAINED AND/OR PROVIDED ON THE WEBSITE IS NOT

LEGAL ADVICE, AND THE COMPANY DOES NOT GUARANTY THAT IT IS ACCURATE, COMPLETE OR

UP TO DATE. THEREFORE, IF THE COMPANY NEEDS LEGAL ADVICE FOR COMPANY’S SPECIFIC

PROBLEM, THEN COMPANY ACKNOWLEDGES AND AGREES THAT COMPANY SHOULD CONSULT

AN ATTORNEY OF COMPANY’S OWN CHOOSING.

  

  

  

17. Remedies. ACT may exercise any remedy available to it under applicable law in order to prevent

the violation of and to enforce this Agreement, including, without limitation, immediate termination of Company’s

access to the Website, if ACT believes Company has violated, is violating, or intends to violate the terms of this

Agreement.

 

18. Changes to Website. Unless explicitly stated otherwise in writing, any new features announced in

writing by ACT and made available by ACT through the Website that augments or enhances the Website shall

automatically be subject to this Agreement.

 

19. Miscellaneous. This Agreement, together with all schedules or exhibits thereto and hereto and the

Usage Policies constitute the entire agreement between Company and ACT relating to the transactions contemplated

hereby. This Agreement and the terms hereof shall be interpreted according to GEORGIA law. All rights and

remedies provided herein or by law are cumulative. Paragraph headings are for convenience of reference only and

do not limit the meaning of this Agreement. Acquiescence in or waiver of any breach is not a waiver of another or

subsequent breach. No custom, practice or course of dealing constitutes a waiver of any provision of this

Agreement. If any provision of this Agreement is held unenforceable, it shall be severed from the balance of this

Agreement. This Agreement is not intended to create a joint venture, partnership or business organization of any

kind between the parties hereto and neither party is authorized to act as the agent of the other. ACT shall not be

liable to the Company or any Customer by reason of any failure or delay in the performance of its obligations

hereunder on account of any cause which is beyond the reasonable control of ACT.

 

COMPANY’S ELECTRONIC SIGNATURE CONSTITUTES ACCEPTANCE BY THE COMPANY

OF THIS AGREEMENT. COMPANY AGREES TO PAY THE FEES BY THE FOLLOWING METHOD:

_______________________

Accepted by:

Advanced Credit Technologies, Inc. David Anthony Agency

	
Chris Jackson____________________________ 

	
BY__David Iannone_____________

	
Name: _______________________________ 

	
Name:_____________________________

	
Title: COO__________________________ 

	
Title: _COO____________________

Effective Date: Februrary 21, 2011_____________________ __________________________________

Additional terms of this contract agreed to by both parties are as follows:

1. $49/month....unlimited client access...ACT will provide all client supportUnassociated Document

Exhibit 10.6

 

 

JOINDER, CONSENT AND FIRST AMENDMENT TO CREDIT AGREEMENT

This Joinder, Consent and First Amendment to Credit Agreement (this “Amendment”) is made as of August 10, 2011, by and among:

 

DSW INC., an Ohio corporation (“DSW”), and DSW SHOE WAREHOUSE, INC., a Missouri corporation (individually, a “Borrower”, and collectively, the “Borrowers”);

 

the Persons named on Schedule I hereto (individually, an “Existing Guarantor”, and collectively, the “Existing Guarantors”);

 

DSW MS LLC, an Ohio limited liability company (“DSW MS”) (the “New Guarantor”, and together with the Existing Guarantors, individually, a “Guarantor”, and collectively, the “Guarantors”; the Guarantors, together with the Borrowers, are hereinafter referred to individually as a “Loan Party”, and collectively as the “Loan Parties”);

 

the LENDERS party hereto; and

 

PNC BANK, NATIONAL ASSOCIATION, in its capacity as administrative agent for the Lenders under the Credit Agreement referred to below (in such capacity, the “Administrative Agent”);

 

in consideration of the mutual covenants herein contained and benefits to be derived herefrom.

W I T N E S S E T H:

 

WHEREAS, reference is made to that certain Credit Agreement, dated as of June 30, 2010 (as amended, restated, supplemented or otherwise modified and in effect from time to time, the “Credit Agreement”), by and among the Borrowers, the Existing Guarantors, the Lenders and the Administrative Agent;

 

WHEREAS, the Borrowers have advised the Agent and the Lenders that DSW has formed DSW MS as a wholly-owned Subsidiary of DSW and has consummated the Acquisition described in that certain confidential side letter dated as of June 30, 2010 (as amended, restated, supplemented or otherwise modified and in effect from time to time (including pursuant to that certain letter agreement dated as of February 3, 2011), the “Side Letter”) by and among the Borrowers, the Existing Guarantors and the Administrative Agent, and as a result of such Acquisition, DSW MS is the sole shareholder of each of the Subsidiaries identified on Schedule II annexed hereto;

 

WHEREAS, pursuant to the Credit Agreement and the Side Letter, the Borrowers are required to cause DSW MS and its Subsidiaries to join the Loan Documents as Guarantors thereunder;

 

WHEREAS, the New Guarantor shall receive direct and indirect benefits from the Lenders’ providing loans and other financial accommodations to the Borrowers under the Loan Documents;

 

  

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WHEREAS, the New Guarantor desires to join the Credit Agreement and the other Loan Documents;

 

WHEREAS, the Loan Parties desire to repay in full the Indebtedness owing under the PIES (as defined in the Side Letter) or otherwise settle the PIES in accordance with the terms thereof and to make a dividend to the shareholders of DSW in connection therewith, and have requested that the Administrative Agent and the Required Lenders consent to such dividend, subject to the terms and conditions set forth herein;

 

WHEREAS, in connection with the foregoing, the Loan Parties, the Required Lenders and the Administrative Agent desire to amend certain provisions of the Credit Agreement, subject to the terms and conditions set forth herein.

 

NOW, THEREFORE, the parties hereto hereby agree as follows:

 

	
1.

	
Defined Terms.  Capitalized terms used in this Amendment shall have the respective meanings assigned to such terms in Credit Agreement unless otherwise defined herein.

 

	
2.

	
Joinder to Loan Documents.

 

	
  

	
(a)

	
Joinder.  The New Guarantor hereby becomes a Guarantor under the terms of the Credit Agreement and in consideration of the value of the synergistic and other benefits received by the New Guarantor as a result of being or becoming affiliated with the Borrowers and the Guarantors, the New Guarantor hereby agrees that effective as of the date hereof it hereby is, and shall be deemed to be, and assumes the Obligations of, a "Loan Party" and a "Guarantor", jointly and severally under the Credit Agreement, a "Guarantor," jointly and severally with the existing Guarantors under the Guaranty, a "Debtor" jointly and severally under the Security Agreement and a Loan Party or Guarantor, as the case may be, under each of the other Loan Documents to which the Loan Parties or Guarantors are a party; and, the New Guarantor hereby agrees that from the date hereof and so long as any Loan or any Commitment of any Lender shall remain outstanding and until the indefeasible payment in full in cash of the Secured Obligations, expiration or termination of all Letters of Credit (or with respect to any undrawn Letters of Credit, the full Cash Collateralization thereof or the supporting thereof by another letter of credit from an issuing bank and on terms satisfactory to the Issuing Lender and the Administrative Agent), and the payment and performance of all other Obligations of the Loan Parties under the Loan Documents, the New Guarantor shall perform, comply with, and be subject to and bound by each of the terms and provisions of the Credit Agreement, Guaranty, Security Agreement and each of the other Loan Documents jointly and severally with the existing parties thereto.  Without limiting the generality of the foregoing, the New Guarantor hereby represents and warrants that (i) each of the representations and warranties set forth in Section 5 of the Credit Agreement applicable to a Loan Party is true and correct as to the New Guarantor on and as of the date hereof (other than representations and warranties that relate solely to an earlier date) and (ii) the New Guarantor has heretofore received a true and correct copy of the Credit Agreement, Guaranty, Security Agreement and each of the other Loan Documents (including any modifications thereof or supplements or waivers thereto) in effect on the date hereof.

 

  

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(b)

	
Ratification.  The New Guarantor hereby makes, affirms, and ratifies in favor of the Administrative Agent and the other Secured Parties the Credit Agreement, Guaranty, Security Agreement and each of the other Loan Documents given by the Guarantors to the Administrative Agent or any of the other Secured Parties, and to the extent that any changes in any representations, warranties, and covenants require any amendments to the schedules of any of such Loan Documents as a result of DSW’s acquisition of the New Guarantor or the joinder of the New Guarantor to the Loan Documents, such schedules are hereby updated, as evidenced by any supplemental schedules (if any) annexed to this Amendment in Exhibit A.

 

	
  

	
(c)

	
Grant of Security Interest.  Without limiting the foregoing, as security for the due and punctual payment and performance of the Secured Obligations in full, the New Guarantor hereby agrees that the Secured Parties shall have, and the New Guarantor hereby grants to and creates in favor of the Administrative Agent for the benefit of itself and the other Secured Parties (as defined in the Security Agreement), a continuing first priority Lien on, and security interest under the UCC in and to, the Collateral (as defined in the Security Agreement) subject only to Permitted Liens having priority by operation of Law.

 

	
  

	
(d)

	
Further Assurances.  The New Guarantor further agrees that with respect to each item of Collateral as to which (i) the creation of a valid and enforceable security interest is not governed exclusively by the UCC or (ii) the perfection of a valid and enforceable first priority security interest therein under the UCC cannot be accomplished either by (a) the Administrative Agent taking possession thereof, (b) the Administrative Agent’s having “control”  (as defined in the UCC) thereof, or (c) by the filing in appropriate locations of appropriate UCC financing statements executed by the New Guarantor, the New Guarantor will at its expense execute and deliver to the Administrative Agent and hereby does authorize the Administrative Agent to execute and file such documents, agreements, notices, assignments and instruments and take such further actions as may be reasonably requested by the Administrative Agent from time to time for the purpose of creating, protecting and preserving a valid and perfected first priority Lien on such item, subject only to Permitted Liens having priority by operation of Law, enforceable against the New Guarantor to secure the Secured Obligations.  In furtherance of the foregoing, the New Guarantor shall execute and deliver or cause to be executed and delivered at any time and from time to time such further instruments and documents and do or cause to be done such further acts as may be reasonably necessary in the reasonable opinion of the Administrative Agent to carry out more effectively the provisions and purposes of this Joinder and the other Loan Documents.

 

  

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3.

	
Amendments to Credit Agreement.

 

	
  

	
(a)

	
The provisions of Section 1.1 of the Credit Agreement [Certain Definitions] are hereby amended by adding the following definitions thereto in appropriate alphabetical order:

 

“First Amendment Effective Date means August 10, 2011.”

 

“Immaterial Subsidiaries means, individually, Retail Ventures Services, Inc., an Ohio corporation, Retail Ventures Licensing, Inc., a Delaware corporation, Retail Ventures Imports, Inc., an Ohio corporation, and Carlyn Advertising Agency, Inc., an Ohio corporation, and collectively, all of the foregoing.”

 

“PIES Repayment has the meaning assigned to such term in that certain Joinder, Consent and First Amendment dated as of August 10, 2011 by and among the Borrowers, the Guarantors, the Administrative Agent and the Required Lenders.”

 

	
  

	
(b)

	
The provisions of Section 5.1 of the Credit Agreement [Representations and Warranties] are hereby amended by adding the following new Section 5.1.18 [Immaterial Subsidiaries] at the end thereof:

 

“5.1.18   Immaterial Subsidiaries.  None of the Immaterial Subsidiaries (i) has any business operations other than as conducted as of the First Amendment Effective Date and those reasonably incidental thereto (all of such operations being de minimis in nature), or (ii) owns any assets other than those that are de minimis in value.”

 

	
  

	
(c)

	
The provisions of Section 7 of the Credit Agreement [Covenants] are hereby amended as follows:

 

	
  

	
(i)

	
By amending Section 7.2.4 [Loans and Investments] as follows:

 

	
  

	
(1)

	
by inserting the phrase “(in each case, other than, except as provided in clause (viii) below, to or in an Immaterial Subsidiary)” immediately preceding the semi-colon appearing prior to clause (i) thereof;

 

	
  

	
(2)

	
by deleting the word “and” at the end of clause (vii) thereof, re-lettering clause (viii) as clause (x) and inserting the following new clauses (viii) and (xi) therein:

 

“(viii)           loans, advances and investments in the Immaterial Subsidiaries, in an amount not to exceed $5,000,000 in the aggregate at any time outstanding, for the purposes of maintaining the Immaterial Subsidiaries’ good standing, filing of tax returns on behalf of the Immaterial Subsidiaries, payment of taxes on behalf of the Immaterial Subsidiaries and other general corporate purposes of the Immaterial Subsidiaries not involving active operations;

 

  

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(ix)           within sixty (60) days following the First Amendment Effective Date, investments in the form of a capital contribution by DSW in DSW MS LLC in connection with the PIES Repayment, provided that (x) to the extent not transferred to the holders of the PIES in connection with the PIES Repayment, DSW MS LLC shall transfer to DSW the issued and outstanding equity interests owned by DSW MS LLC in DSW contemporaneously with such investment, and (y) the aggregate amount of such investment shall not exceed the amount, when combined with such portion of the PIES Repayment paid in the form of the issuance of equity interests of DSW, necessary to satisfy the PIES Repayment in full; and”

 

	
  

	
(ii)

	
By amending Section 7.2.5 [Dividends and Related Distributions] as follows:

 

	
  

	
(1)

	
by deleting the proviso from clause (ii) thereof and substituting the following proviso in its stead:

 

“provided that prior to and after giving effect to the making of such dividend or other distribution, no Trigger Event Election or Event of Default shall have occurred and the Borrowers shall have on hand the Minimum Cash Requirement.”

 

	
  

	
(2)

	
by adding the following clauses (iii) and (vi) at the end thereof:

 

“(iii) substantially contemporaneously with the PIES Repayment, dividends or other distributions in an aggregate amount not to exceed the difference (if a positive number) between (a) $190,000,000, and (b) such portion of the PIES Repayment paid in cash; and

 

(iv) to the extent constituting a dividend, distribution, share repurchase, share redemption or retirement, the investment described in clause (viii) of Section 7.2.4 [Loans and Investments].”

 

	
  

	
(iii)

	
By amending Section 7.2.7 [Dispositions of Assets or Subsidiaries] by inserting the phrase “(in each case, other than to or with an Immaterial Subsidiary)” immediately preceding the semi-colon appearing prior to clause (i) thereof; and

 

  

5

  

	
  

	
(iv)

	
By deleting Section 7.2.8 [Affiliate Transactions] in its entirety and substituting the following new Section 7.2.8 [Affiliate Transactions] in its stead:

 

“7.2.8  Affiliate Transactions.  Except as disclosed on Schedule 7.2.8 or as permitted pursuant to clause (viii) of Section 7.2.4 [Loans and Investments], each of the Loan Parties shall not, and shall not permit any of its Subsidiaries to, enter into or carry out any transaction with any Immaterial Subsidiary or any Affiliate of any Loan Party (including purchasing property or services from or selling property or services to any Immaterial Subsidiary or any Affiliate of any Loan Party or other Person) unless such transaction is not otherwise prohibited by this Agreement, is entered into in the ordinary course of business upon fair and reasonable arm's-length terms and conditions which are fully disclosed to the Administrative Agent and is in accordance with all applicable Law.”

 

	
  

	
(v)

	
By amending Section 7.2.14 [Capital Expenditures] by deleting the number “$75,000,000” in its entirety therefrom and substituting in its stead the number “$100,000,000”.

 

	
  

	
(vi)

	
By adding the following new Section 7.2.19 [Immaterial Subsidiaries] at the end thereof:

 

“7.2.19  Immaterial Subsidiaries.  The Immaterial Subsidiaries shall not engage in any business operations other than those operations being conducted as of the First Amendment Effective Date and any operations reasonably incidental thereto (including any dissolution or winding up of any such Immaterial Subsidiary) or acquire any assets unless prior thereto, such Immaterial Subsidiaries shall have joined the Loan Documents in accordance with the provisions of Section 7.2.9 [Subsidiaries, Partnerships and Joint Ventures].”

 

	
4.

	
PIES Repayment.  The Borrowers have advised the Administrative Agent and the Lenders that they desire to repay the Indebtedness consisting of the PIES (as defined in the Side Letter) on or prior to September 15, 2011 in an amount not to exceed $190,000,000 (the “PIES Repayment”), such repayment to consist of a cash payment or the issuance of equity interests.  Such PIES Repayment is permitted pursuant to Section 7 of the Side Letter subject to the satisfaction of the conditions described therein.  The Borrowers acknowledge and agree that the Borrowers shall deliver to the Administrative Agent, contemporaneously with the PIES Repayment, a certificate in form and substance reasonably satisfactory to the Administrative Agent and duly executed by an Authorized Officer of each Borrower, certifying to the Administrative Agent and the Lenders that as of the date of the PIES Repayment, (i) the Borrowers have maintained the Minimum Cash Requirement, and (ii) no Event of Default or Trigger Event has occurred and is continuing or would result from the PIES Repayment.

 

  

6

  

	
5.

	
Consent regarding Immaterial Subsidiaries.  The Borrowers have requested that the Administrative Agent and the Lenders refrain from requiring that (i) the Immaterial Subsidiaries join the Loan Documents as Loan Parties thereunder, and (ii) the New Guarantor grant to the Administrative Agent Administrative Agent for the benefit of itself and the other Secured Parties a continuing first priority Lien on the equity interests owned by the New Guarantor in each of the Immaterial Subsidiaries.  Subject to the satisfaction of the conditions precedent set forth in Section 7 hereof, the Administrative Agent and the Lenders hereby consent and affirm that, except as provided in Section 7.2.19 of the Credit Agreement [Immaterial Subsidiaries], (i) the Immaterial Subsidiaries shall not be required to join the Loan Documents as Loan Parties thereunder, and (ii) the New Guarantor shall not be required to grant to the Administrative Agent Administrative Agent for the benefit of itself and the other Secured Parties, a continuing first priority Lien on the equity interests owned by the New Guarantor in each of the Immaterial Subsidiaries. The consent provided in this Section 5 shall in no way constitute a modification or waiver of any of the Administrative Agent’s, the Lenders’ or the Issuing Bank’s rights, or any Loan Party’s obligations, under the Credit Agreement, the Side Letter or any other Loan Documents, each of which (as expressly modified in this Amendment) remains in full force and effect.  It is hereby agreed to and understood by the parties that this consent is a one-time consent related to the Immaterial Subsidiaries and is not an amendment to the Credit Agreement with respect to any other obligation to cause other Subsidiaries to join the Loan Documents or to grant Liens on equity interests on any other occasion, nor is it a waiver of any Potential Default or Event of Default now existing or hereafter arising under the Credit Agreement.

 

	
6.

	
Ratification of Loan Documents.  Except as otherwise expressly provided herein, all terms and conditions of the Credit Agreement and the other Loan Documents remain in full force and effect.  The Loan Parties hereby ratify, confirm, and reaffirm that all representations and warranties of the Loan Parties contained in the Credit Agreement and each other Loan Document are true and correct in all material respects on and as of the date hereof, except to the extent such representations and warranties (1) relate to an earlier date, in which case they are true and correct in all material respects as of such earlier date, or (2) are modified by “materiality” or “Material Adverse Change” or words of similar import, in which case they are true and correct in all such respects.  The Guarantors hereby acknowledge, confirm and agree that the Guarantied Obligations of the Guarantors under, and as defined in, the Guaranty include, without limitation, all Obligations of the Loan Parties at any time and from time to time outstanding under the Credit Agreement and the other Loan Documents, as such Obligations have been amended pursuant to this Amendment.  The Loan Parties hereby acknowledge, confirm and agree that the Collateral Documents and any and all Collateral previously pledged to the Administrative Agent, for the benefit of the Secured Parties (as defined in the Security Agreement), pursuant thereto, shall continue to secure all applicable Obligations of the Loan Parties at any time and from time to time outstanding under the Credit Agreement and the other Loan Documents.

 

  

7

  

	
7.

	
Conditions to Effectiveness.  This Amendment shall not be effective until each of the following conditions precedent has been fulfilled to the reasonable satisfaction of the Administrative Agent:

 

	
  

	
(a)

	
The Administrative Agent shall have received counterparts of this Amendment duly executed and delivered by each of the parties hereto.

 

	
  

	
(b)

	
All action on the part of the Loan Parties (including, without limitation, the New Guarantor) necessary for the valid execution, delivery and performance by the Loan Parties of this Amendment and the documents, instruments and agreements to be executed in connection herewith shall have been duly and effectively taken and evidence thereof reasonably satisfactory to the Administrative Agent shall have been provided to the Administrative Agent.

 

	
  

	
(c)

	
The New Guarantor shall each have delivered the following to the Administrative Agent, in form and substance reasonably satisfactory to the Agents:

 

	
  

	
(i)

	
Copies of the New Guarantor’s certificate of articles of organization, (including any provisions or resolutions relating to capital stock), operating agreement or other organizational documents.

 

	
  

	
(ii)

	
Certificates of resolutions or other action, incumbency certificates and/or other certificates of Authorized Officers of the New Guarantor evidencing (A) the authority of the New Guarantor to enter into this Amendment and the other Loan Documents to which the New Guarantor is a party or is to be a party and (B) the identity, authority and capacity of each Authorized Officer thereof authorized to act as a Authorized Officer in connection with this Amendment and the other Loan Documents to which the New Guarantor is a party or is to be a party.

 

	
  

	
(iii)

	
Certificate of Full Force and Effect issued by the Secretary of the State of such New Domestic Guarantor’s incorporation or organization.

 

	
  

	
(iv)

	
A Perfection Certificate substantially in the form delivered to the Administrative Agent on the Closing Date.

 

	
  

	
(v)

	
Any Collateral Documents or amendments thereto necessary to evidence and/or perfect the pledge by the holder of the equity interests in the New Guarantor of such equity interests in favor of the Administrative Agent, as security for the Obligations, in each case in form and substance satisfactory to the Administrative Agent and duly executed by the parties thereto.

 

	
  

	
(vi)

	
Evidence that all insurance as to the New Guarantor required to be maintained pursuant to the Loan Documents (including, without limitation, Section 7.1.3 of the Credit Agreement [Maintenance of Insurance]) in favor of the Administrative Agent required under the Loan Documents have been obtained and are in effect.

 

  

8

  

	
  

	
(vii)

	
Execution and delivery by the New Guarantor of the following Loan Documents:

 

	
  

	
(1)

	
All applicable Collateral Documents necessary or advisable to create in favor of the Administrative Agent valid, enforceable and perfected first priority Liens in the Collateral, including, without limitation, Blocked Account Agreements; and

 

	
  

	
(2)

	
Such other documents and agreements as the Administrative Agent may reasonably require in order to carry out the terms and conditions of the Credit Agreement, this Amendment and the other Loan Documents.

 

	
  

	
(d)

	
The Administrative Agent shall have received all documents and instruments, including UCC financing statements, required by applicable Law or reasonably requested by the Agent to create or perfect the Liens intended to be created under any Collateral Document and all such documents and instruments shall have been so filed, registered or recorded to the reasonable satisfaction of the Administrative Agent.

 

	
  

	
(e)

	
The Loan Parties shall have paid in full (i) all expenses invoiced to the Borrowers in connection with the preparation, negotiation, execution and delivery of this Amendment and related documents, and (ii) any other outstanding fees and expenses invoiced and due and owing and required to be paid under Section 10.3.1 of the Credit Agreement [Costs and Expenses].

 

	
  

	
(f)

	
The Loan Parties shall have executed and delivered to the Administrative Agent such additional documents, instruments, and agreements as the Administrative Agent may reasonably request.

 

	
8.

	
Representations and Warranties.

 

	
  

	
(a)

	
The execution, delivery and performance by each Loan Party of this Amendment and the performance of each Loan Party’s obligations hereunder have been duly authorized by all necessary corporate or other organizational action, do not and shall not: (i) contravene the terms of any of such Person's organizational documents; (ii) conflict with or result in any breach, termination, or contravention of, or constitute a default under, or require any payment to be made under (x) any material contract, document, or agreement to which such Person is a party or any material Indebtedness to which such Person is a party, or affecting such Person or the properties of such Person or any of its Subsidiaries, in each case in any material respect, or (y) any order, injunction, writ or decree of any Official Body or any arbitral award to which such Person or its property is subject; (iii) result in or require the creation of any Lien upon any asset of any Loan Party (other than Liens in favor of the Administrative Agent under the Collateral Documents); or (iv) violate any Law.

 

  

9

  

	
  

	
(b)

	
This Amendment has been duly executed and delivered by each Loan Party.  This Amendment constitutes a legal, valid and binding obligation of each Loan Party, enforceable against each Loan Party in accordance with its terms, subject to the Bankruptcy Code.

 

	
  

	
(c)

	
After giving effect to this Amendment, no Potential Default or Event of Default has occurred and is continuing.

 

	
9.

	
Miscellaneous.

 

	
  

	
(a)

	
Each of the Loan Parties hereby acknowledges and agrees that it has no offsets, defenses, claims, or counterclaims against the Agents, the other Secured Parties, or their respective parents, affiliates, predecessors, successors, or assigns, or their officers, directors, employees, attorneys, or representatives, with respect to the Obligations, and that if any of the Loan Parties now has, or ever did have, any offsets, defenses, claims, or counterclaims against such Persons, whether known or unknown, at law or in equity, from the beginning of the world through this date and through the time of execution of this Amendment, all of them are hereby expressly WAIVED, and each of the Loan Parties hereby RELEASES such Persons from any liability therefor.

 

	
  

	
(b)

	
This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Amendment, the Credit Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof including any prior confidentiality agreements and commitments.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or e-mail shall be effective as delivery of a manually executed counterpart of this Amendment.

 

	
  

	
(c)

	
The provisions of this Amendment are intended to be severable.  If any provision of this Amendment shall be held invalid or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without in any manner affecting the validity or enforceability thereof in any other jurisdiction or the remaining provisions hereof in any jurisdiction.

 

	
  

	
(d)

	
The Loan Parties represent and warrant that they have consulted with independent legal counsel of their selection in connection with this Amendment and are not relying on any representations or warranties of the Administrative Agent or any other Secured Party or their respective counsel in entering into this Amendment.

 

	
  

	
 (e)

	
This Amendment shall be deemed to be a contract under the Laws of the State of Ohio without regard to its conflict of laws principles.

 

[SIGNATURE PAGES FOLLOW]

 

  

10

  

IN WITNESS WHEREOF, the parties have hereunto caused this Amendment to be executed and their seals to be hereto affixed as of the date first above written.

 

	  	
DSW INC., as a Borrower

	  	  	  
	  	
By:

	
/s/Kurt Gatterdam

	  	
Name:

	
Kurt Gatterdam

	  	
Title:

	
VP, Treasurer

	  	  	  
	  	  	  
	  	
DSW SHOE WAREHOUSE, INC., as a Borrower

	  	  	  
	  	
By:

	
/s/Kurt Gatterdam

	  	
Name:

	
Kurt Gatterdam

	  	
Title:

	
VP, Treasurer

	  	  	  
	  	  	  
	  	
ETAILDIRECT LLC, as an Existing Guarantor

	  	  	  
	  	
By:

	
/s/Kurt Gatterdam

	  	
Name:

	
Kurt Gatterdam

	  	
Title:

	
VP, Treasurer

	  	  	  
	  	  	  
	  	
BRAND CARD SERVICES LLC, as an Existing Guarantor

	  	  	  
	  	
By:

	
/s/Kurt Gatterdam

	  	
Name:

	
Kurt Gatterdam

	  	
Title:

	
VP, Treasurer

	  	  	  
	  	
DSW INFORMATION TECHNOLOGY LLC, as an Existing Guarantor

	  	  	  
	  	
By:

	
/s/Kurt Gatterdam

	  	
Name:

	
Kurt Gatterdam

	  	
Title:

	
VP, Treasurer

 

  

  

  

	  	
MINT STUDIO LLC, as an Existing Guarantor

	  	  	  
	  	
By:

	
/s/Kurt Gatterdam

	  	
Name:

	
Kurt Gatterdam

	  	
Title:

	
VP, Treasurer

	  	  	  
	  	  	  
	  	
DSW MS LLC, as a New Guarantor

	  	  	  
	  	
By:

	
/s/Kurt Gatterdam

	  	
Name:

	
Kurt Gatterdam

	  	
Title:

	
VP, Treasure

 

  

  

  

List of Omitted Schedules and Exhibits

 

Pursuant to Item 601(b)(2) of Regulation S-K, the following schedules and exhibits to this Joinder, Consent and First Amendment to Credit Agreement, have not been provided herein: 

Schedules

Schedule I. Existing Guarantors

Schedule II. Subsidiaries of New Guarantor

Exhibits

Exhibit A. Updated Schedules to Loan Documents

 

The registrant agrees to supplementally furnish a copy of any omitted schedule or exhibit to the Securities and Exchange Commission upon request.

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