Document:

Exhibit 10.1.6

 

FIFTH AMENDMENT TO CREDIT AGREEMENT

 

FIFTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) dated as of June 15, 2016 is entered into by and among:

 

AT HOME HOLDING III INC. (formerly known as GRD Holding III Corporation), a Delaware corporation, and AT HOME STORES LLC (successor in interest to Garden Ridge, L.P.), a Delaware limited liability company (collectively, the “Borrowers” and each individually, a “Borrower”);

 

the GUARANTORS party hereto;

 

the LENDERS party hereto; and

 

BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the “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, the Borrowers, the Lenders, and the Agent, among others, have entered into a certain Credit Agreement dated as of October 5, 2011, as amended by the First Amendment to Credit Agreement dated as of May 9, 2012, as further amended by the Second Amendment to Credit Agreement dated as of May 23, 2013, as further amended by the Third Amendment to Credit Agreement dated as of July 28, 2014, as further amended by the Assumption and Ratification Agreement dated as of September 29, 2014, and as further amended by the Fourth Amendment to Credit Agreement dated as of June 5, 2015 (as the same may be further amended, restated, supplemented or otherwise modified, the “Credit Agreement”); and

 

WHEREAS, the parties to the Credit Agreement desire to modify certain provisions of the Credit Agreement as provided herein.

 

NOW THEREFORE, in consideration of the mutual promises and agreements herein contained, the parties hereto hereby agree as follows:

 

1.                                      Incorporation of Terms and Conditions of the Credit Agreement.  All of the terms and conditions of the Credit Agreement (including, without limitation, all definitions set forth therein) are specifically incorporated herein by reference.  All capitalized terms not otherwise defined herein shall have the same meaning as in the Credit Agreement, as applicable.

 

2.                                      Amendments to the Credit Agreement.

 

a.                                      The definition of “Aggregate Commitments” in Section 1.01 of the Credit Agreement is hereby amended by (i) deleting “$140,000,000” and inserting “215,000,000” in lieu thereof and (ii) deleting “Third Amendment Effective Date” and inserting “Fifth Amendment Effective Date” in lieu thereof.

 

 

b.                                      The definition of “Eurodollar Rate” in Section 1.01 of the Credit Agreement is hereby amended by inserting “In no event shall the Eurodollar Rate be less than zero” at the end of such definition.

 

c.                                       The definition of “Letter of Credit Sublimit” in Section 1.01 of the Credit Agreement is hereby amended by deleting “$10,000,000” and inserting “$25,000,000” in lieu thereof.

 

d.                                      The following new definitions are hereby inserted into Section 1.01 of the Credit Agreement in their proper alphabetical sequence:

 

““Fifth Amendment” means Fifth Amendment to the Credit Agreement, dated as of June 15, 2016.”

 

““Fifth Amendment Effective Date” has the meaning specified in the Fifth Amendment.”

 

e.                                       Amendments to Section 2.14 of the Credit Agreement.

 

i.                                          Section 2.14(a) of the Credit Agreement is hereby amended by deleting “Third Amendment Effective Date” and inserting “Fifth Amendment Effective Date” in lieu thereof.

 

ii.                                       Section 2.14(d) of the Credit Agreement is hereby amended by inserting “and (v) clause (i) of the ABL Cap (as defined in the Term Loan Facilities) shall have been amended to reflect an amount equal to the amount of the Aggregate Commitments (after giving effect to the increase in Commitments contemplated hereby).”

 

f.                                        Amendment to Section 9.01 of the Credit Agreement.  The first sentence of Section 9.01(d) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“The Administrative Agent shall also act as the “collateral agent” under the Loan Documents, and each L/C Issuer and each of the Lenders (including in its capacities as a potential Bank Product Provider, Cash Management Bank and a potential Hedge Bank and on behalf of its Affiliates acting in such capacities) hereby irrevocably appoints and authorizes the Administrative Agent to act as the agent of such Lender, L/C Issuer, Bank Product Provider, Cash Management Bank and Hedge Bank for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan Parties to secure any of the Secured Obligations, together with such powers and discretion as are reasonably incidental thereto.”

 

g.                                       Designation of Wells Fargo Bank, National Association, as a Syndication Agent. Wells Fargo Bank, National Association, is hereby designated as a Syndication Agent in respect of the credit facilities evidenced by the Credit Agreement.

 

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Accordingly, (i) the cover page of the Credit Agreement is amended to replace “UBS SECURITIES LLC as Syndication Agent” with UBS SECURITIES LLC and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Syndication Agents,” (ii) the preamble to the Credit Agreement is amended to replace “UBS SECURITIES LLC as Syndication Agent” with UBS SECURITIES LLC and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Syndication Agents” and (iii) the definition of “Syndication Agent” in Section 1.01 of the Credit Agreement is amended to (x) insert the words “and Wells Fargo Bank, National Association,” immediately after the words “UBS Securities LLC” and (y) replace “Syndication Agent” with “Syndication Agents.”

 

h.                                      Amendment to Schedules to the Credit Agreement.  Schedule 2.01 (Commitments and Pro Rata Shares) to the Credit Agreement is hereby deleted in its entirety and replaced with Annex A attached to this Amendment.

 

3.                                      Conditions to Effectiveness.  This Amendment shall not be effective until the date that each of the following conditions precedent has been fulfilled to the satisfaction of the Agent (such date the “Fifth Amendment Effective Date”):

 

a.                                      This Amendment shall have been duly executed and delivered by the Borrowers, the Guarantors and the Lenders.

 

b.                                      The Agent shall have received the Fifth Amendment Fee Letter, dated as of the date hereof, duly executed by the Borrowers and Agent, and the Borrowers shall have paid all fees payable thereunder.

 

c.                                       The Agent shall have received (i) reasonable and customary opinions of counsel to the Loan Parties, and (ii) such customary corporate resolutions, certificates, lien searches and other customary corporate documents as the Agent shall reasonably request.

 

d.                                      The Borrowers shall have reimbursed the Agent for all reasonable out of pocket fees, costs and expenses, including, reasonable attorneys’ fees, in connection with or relating to this Amendment.

 

e.                                       The Administrative Agent shall have administered such reallocations, sales, assignments, transfers or other relevant actions to insure that the amount of Revolving Credit Loans made by each Lender shall equal such Lender’s Pro Rata Share (after giving effect to the increase in Commitments contemplated hereby) of all Revolving Credit Loans outstanding as of the Fifth Amendment Effective Date.

 

f.                                        After giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing.

 

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4.                                      Representations and Warranties.  Each Loan Party hereby represents and warrants that as of the Fifth Amendment Effective Date (as defined in Section 3 of this Amendment):

 

a.                                      (i) No Default or Event of Default exists under the Credit Agreement or under any other Loan Document, and (ii) all representations and warranties contained in the Credit Agreement and in the other Loan Documents are true and correct in all material respects except that (x) to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date, and (y) in the case of any representation and warranty qualified by materiality, they are true and correct in all respects.

 

b.                                      This Amendment has been duly executed and delivered by each of the Loan Parties.  This Amendment constitutes the legal, valid and binding obligation of each Loan Party, enforceable against such Loan Party in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

5.                                      Ratification of Loan Documents.  The Credit Agreement, as hereby amended, and all other Loan Documents, are hereby ratified and re-affirmed in all respects and shall continue in full force and effect.  The Collateral Documents continue to secure the Obligations, as modified pursuant to this Amendment, to the same extent as prior to giving effect to this Amendment.

 

6.                                      Binding Effect.  The terms and provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their heirs, representatives, successors and assigns.

 

7.                                      Multiple Counterparts.   This Amendment may be executed in multiple counterparts, each of which shall constitute an original and together which shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy, or other electronic image scan transmission (e.g., “pdf” or “tif” via e-mail) shall be as effective as delivery of a manually executed counterpart of this Amendment.

 

8.                                      Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF, BUT INCLUDING SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

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

 

 

BORROWERS:

 

	
 
    	
AT HOME HOLDING III INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Judd T. Nystrom
    
	
 
    	
 
    	
Name: Judd T. Nystrom
    
	
 
    	
 
    	
Title: Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AT HOME STORES LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Judd T. Nystrom
    
	
 
    	
 
    	
Name: Judd T. Nystrom
    
	
 
    	
 
    	
Title: Chief Financial Officer
    

 

Fifth Amendment to Credit Agreement

 

 

GUARANTORS:

 

	
 
    	
AT HOME HOLDING II INC.
    
	
 
    	
AT HOME COMPANIES LLC
    
	
 
    	
AT HOME FINANCE CORPORATION
    
	
 
    	
AT HOME PROPERTIES LLC
    
	
 
    	
1600 EAST PLANO PARKWAY, LLC
    
	
 
    	
2650 WEST INTERSTATE 20, LLC
    
	
 
    	
11501 BLUEGRASS PARKWAY LLC
    
	
 
    	
12990 WEST CENTER ROAD LLC
    
	
 
    	
1944 SOUTH GREENFIELD ROAD LLC
    
	
 
    	
4700 GREEN ROAD LLC
    
	
 
    	
4304 WEST LOOP 289 LLC
    
	
 
    	
642 SOUTH WALNUT AVENUE LLC
    
	
 
    	
15065 CREOSOTE ROAD LLC
    
	
 
    	
335 N. ACADEMY BOULEVARD   (1031), LLC
    
	
 
    	
1660 W. MIDWAY BOULEVARD   (1031), LLC
    
	
 
    	
3003 WEST VINE, LLC
    
	
 
    	
7613 NORTH EAST LOOP 1604, LLC
    
	
 
    	
334 CHICAGO DRIVE, LLC
    
	
 
    	
4949 GREENWOOD DRIVE, LLC
    
	
 
    	
2251 SOUTHWYCK BLVD, LLC
    
	
 
    	
1605 BUFORD HWY, LLC
    
	
 
    	
1267 CENTRAL PARK DR, LLC
    
	
 
    	
4801 183A TOLL ROAD, LLC
    
	
 
    	
19000 LIMESTONE COMMERCIAL DR,   LLC
    
	
 
    	
5501 GROVE BLVD, LLC
    
	
 
    	
1600 W. KELLY AVENUE, LLC
    
	
 
    	
1919 WELLS RD, LLC
    
	
 
    	
7697 WINCHESTER RD, LLC
    
	
 
    	
1000 TURTLE CREEK DRIVE LLC
    
	
 
    	
2201 PORTER CREEK DR LLC
    
	
 
    	
2000 E. SANTA FE LLC
    
	
 
    	
301 S TOWN MALL DR LLC
    
	
 
    	
621 SW 19TH STREET LLC
    
	
 
    	
4200 AMBASSADOR CAFFERY PKWY   LLC
    
	
 
    	
4405 PHEASANT RIDGE DR LLC
    
	
 
    	
6360 RIDGEWOOD COURT DR LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Judd T. Nystrom
    
	
 
    	
 
    	
Name: Judd T. Nystrom
    
	
 
    	
 
    	
Title: Chief Financial   Officer
    

 

Fifth Amendment to Credit Agreement

 

 

	
 
    	
BANK OF AMERICA, N.A., as Administrative Agent, Swing Line   Lender and L/C Issuer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard D. Hill Jr.
    
	
 
    	
 
    	
Name:   Richard D. Hill Jr.
    
	
 
    	
 
    	
Title:   Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BANK   OF AMERICA, N.A.,   as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard D. Hill Jr.
    
	
 
    	
 
    	
Name:   Richard D. Hill Jr.
    
	
 
    	
 
    	
Title:   Managing Director
    

 

Fifth Amendment to Credit Agreement

 

 

	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert C. Chakarian
    
	
 
    	
 
    	
Name:   Robert C. Chakarian
    
	
 
    	
 
    	
Title:   Vice President
    

 

Fifth Amendment to Credit Agreement

 

 

ANNEX A

 

SCHEDULE 2.01

 

[see attached]Exhibit 10.13

 

AMENDED AND RESTATED

 

AT HOME GROUP INC.

 

ANNUAL BONUS PLAN

 

1.              Purpose

 

The purpose of this Amended and Restated At Home Group Inc. Annual Bonus Plan is to promote the interests of the Company and its shareholders by motivating superior performance by executive officers and other key personnel with annual bonus opportunities based upon corporate and individual performance.

 

2.              Definitions

 

(a)   “Award” means an award granted to a Participant under the Plan subject to such terms and conditions as the Plan Administrator may establish under the terms of the Plan.

 

(b)   “Board” means the Board of Directors of the Company.

 

(c)   “Company” means At Home Group Inc. and its subsidiaries.

 

(d)   “Participant” means an employee of the Company who has been granted an Award under the Plan.

 

(e)   “Performance Criteria” shall have the meaning set forth in Section 5(b) hereof.

 

(f)    “Performance Goals” shall have the meaning set forth in Section 5(c) hereof.

 

(g)   “Plan” means this At Home Group Inc. Annual Bonus Plan, as it may be amended and restated from time to time.

 

(h)   “Plan Administrator” means the Compensation Committee of the Board, or such other committee of the Board that the Board shall designate from time to time to administer the Plan.

 

(i)    “Plan Year” means each fiscal year in which the Plan shall be in effect.

 

3.              Plan Administration

 

(a)   General. The Plan shall be administered by the Plan Administrator. The Plan Administrator shall have such powers and authority as may be necessary or appropriate for the Plan Administrator to carry out its functions as described in the Plan. No member of the Plan Administrator shall be liable for any action or determination made in good faith by the Plan Administrator with respect to the Plan or any Award hereunder. The Plan Administrator may delegate, to any appropriate officer or employee of the Company, responsibility for performing certain ministerial functions under this Plan.

 

(b)   Discretionary Authority. Subject to the express limitations of the Plan, the Plan Administrator shall have authority in its discretion to determine the time or times at which Awards may be granted, the recipients of Awards, the Performance Criteria, the Performance Goals and all other terms of an Award. The Plan Administrator shall also have discretionary authority to interpret the Plan, to make all factual determinations under the Plan, and to make all other determinations necessary or advisable for the administration of the Plan. The Plan Administrator may prescribe, amend, and rescind rules and

 

 

regulations relating to the Plan. All interpretations, determinations, and actions by the Plan Administrator shall be final, conclusive, and binding upon all parties.

 

4.              Eligibility and Participation

 

Employees of the Company who hold a position as an executive officer of the Company shall be eligible to participate in the Plan for a Plan Year on such basis and on such terms and conditions as determined by the Plan Administrator. In addition, any other employees of the Company designated by the Plan Administrator to receive an Award for a Plan Year shall become a Participant in the Plan with respect to such Plan Year.

 

5.              Awards

 

(a)   Amount of Awards. The Plan Administrator will determine in its discretion the amount of an Award, the Performance Criteria, the applicable Performance Goals relating to the Performance Criteria, and the amount and terms of payment to be made upon achievement of the Performance Goals for each Plan Year.

 

(b)   Performance Criteria. For purposes of Awards granted under the Plan, the “Performance Criteria” for a given Plan Year shall be one or any combination of the following, for the Company or any identified subsidiary or business unit, as may be selected by the Plan Administrator in its sole discretion at the time of an Award: (i) earnings per share; (ii) operating income; (iii) return on equity or assets; (iv) cash flow; (v) net cash flow; (vi) cash flow from operations; (vii) EBITDA and/or adjusted EBITDA; (viii) revenue growth, product revenue and/or comparable sales growth; (ix) revenue ratios; (x) cost reductions; (xi) cost ratios or margins; (xii) overall revenue or sales growth; (xiii) expense reduction or management; (xiv) market position or market share; (xv) total shareholder return; (xvi) return on investment; (xvii) earnings before interest and taxes (EBIT); (xviii) net income (before or after taxes); (xix) return on assets or net assets; (xx) economic value added; (xxi) shareholder value added; (xxii) cash flow return on investment; (xxiii) net operating profit; (xxiv) net operating profit after tax; (xxv) return on capital; (xxvi) return on invested capital; (xxvii) customer growth; (xxviii) supply chain achievements, (xxix) financial ratios, including those measuring liquidity, activity, profitability or leverage; (xxx) financing and other capital raising transactions (xxxi) strategic partnerships or transactions; or (xxxii) any combination of the foregoing, or such other Performance Criteria determined to be appropriate by the Plan Administrator in its sole discretion.

 

(c)   Performance Goals. For purposes of Awards granted under the Plan, the “Performance Goals” for a given Plan Year shall be the levels of achievement relating to the Performance Criteria as may be selected by the Plan Administrator for the Award. The Plan Administrator may establish such Performance Goals relative to the applicable Performance Criteria as it determines in its sole discretion at the time of an Award. The Performance Goals may be applied on an absolute basis or relative to an identified index or peer group, as specified by the Plan Administrator. The Performance Goals may be applied by the Plan Administrator after excluding charges for restructurings, discontinued operations, extraordinary items and other unusual or non-recurring items, and the cumulative effects of accounting changes, and without regard to realized capital gains.

 

(d)   Payment of Awards. The payment of awards under the Plan shall be made at such time or times as determined by the Plan Administrator in its sole discretion and generally shall be made within two and one half months following the end of the applicable Plan Year.

 

(e)   Form of Payment. Awards under the Plan shall generally be made in cash. The Plan Administrator may, in its discretion, provide that a Participant receive all or a portion of an Award in

 

 

stock units or other equity-based compensation to be granted under one or more equity incentive compensation plans sponsored or maintained by the Company from time to time.

 

(f)    Tax Withholding. Any payment under this Plan shall be subject to applicable income and employment taxes and any other amounts that the Company is required by law to deduct and withhold from such payment.

 

6.              Termination of Employment

 

(a)   General Rule. Subject to the provisions of Section 6(b) hereof, the obligation of the Company to satisfy payment of an Award to a Participant hereunder is conditioned upon the continued employment of the Participant with the Company at the time determined by the Plan Administrator for payment of an Award. If the employment of a Participant with the Company is terminated for any reason, at any time prior to the time determined by the Plan Administrator for payment of an Award hereunder, the Award shall be forfeited and automatically be cancelled without further action of the Company, unless otherwise provided by the Plan Administrator.

 

(b)   Exceptions. The Plan Administrator may, in its discretion, provide for the payment of an Award in the event a Participant’s employment with the Company is terminated for any reason including, but not limited to, a termination by the Company without cause or as a result of the Participant’s death or disability. Such payment may be made on a pro-rated or accelerated basis as determined by the Plan Administrator in its sole discretion.

 

7.              General Provisions

 

(a)   Effective Date. The Plan shall be effective with respect to Plan Years beginning on or after January 1, 2016.

 

(b)   Amendment and Termination. The Company may, from time to time, by action of the Board, amend, suspend or terminate any or all of the provisions of the Plan with respect to the then current Plan Year and any future Plan Year, without the requirement of obtaining the consent of the affected Participants.

 

(c)   No Right to Employment. Nothing in the Plan shall be deemed to give any Participant the right to remain employed by the Company or to limit, in any way, the right of the Company to terminate, or to change the terms of, a Participant’s employment at any time.

 

(d)   Governing Law. The Plan shall be governed by and construed in accordance with the laws of Texas, without regard to the choice-of-law rules thereof.

 

(e)   Section 409A. The Company intends that that payments and benefits under this Plan will either comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and guidance promulgated thereunder (collectively “Section 409A”) and, accordingly, to the maximum extent permitted, this Plan shall be interpreted to be exempt from Section 409A or in compliance therewith, as applicable. Nothing contained herein shall constitute any representation or warranty by the Company regarding compliance with Section 409A. The Company shall have no obligation to take any action to prevent the assessment of any additional income tax, interest or penalties under Section 409A on any person and the Company, its subsidiaries and affiliates, and each of their respective employees or representatives, shall have no liability to any person with respect thereto. A termination of employment shall not be deemed to have occurred for purposes of any provision of the Plan providing for the payment of any amounts or benefits that are considered nonqualified deferred

 

 

compensation under Section 409A upon or following a termination of employment, unless such termination is also a “separation from service” within the meaning of Section 409A and the payment thereof prior to a “separation from service” would violate Section 409A. For purposes of any such provision of the Plan or relating to any such payments or benefits, references to a “termination,” “termination of employment,” or like terms shall mean “separation from service.” If an amount is paid in two or more installments, for purposes of Section 409A, each installment shall be treated as a separate payment. Notwithstanding any contrary provision in the Plan, any payment(s) of nonqualified deferred compensation (within the meaning of Section 409A) that are otherwise required to be made under the Plan to a “specified employee” (as defined under Section 409A) as a result of his or her separation from service (other than a payment that is not subject to Section 409A) shall be delayed for the first six months following such separation from service (or, if earlier, until the date of death of the specified employee) and shall instead be paid on the day that immediately follows the end of such six-month period.

 

(f)    Section 162(m) Transition Relief. This Plan, having been adopted prior to the Company’s securities having become publicly held in connection with an initial public offering, is intended to satisfy the requirements for the transition relief under Treasury Regulation §1.162-27(f)(1) such that the deduction limit set forth in Treasury Regulation §1.162-27(b) does not apply to any remuneration paid pursuant to this Plan until the first meeting of the shareholders of the Company at which directors of the Company are to be elected that occurs after the close of the third calendar year following the calendar year in which the initial public offering of the Company’s securities occurs.

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