Document:

Amendment No.3 to Credit Agreement

 Exhibit 10.6 
  
 AMENDMENT NO. 3 TO CREDIT AGREEMENT 
  
 This Amendment, dated as of June 28, 2003 (this “Amendment”), is by and among Footstar, Inc. (the
“Lead Borrower”) and Footstar Corporation (collectively, with the Lead Borrower, the “Borrowers”), the financial institutions named as parties hereto as lenders (the “Lenders”), Fleet National Bank,
as swingline lender and as administrative agent (in such capacity, the “Administrative Agent”), Fleet Retail Finance Inc., as collateral agent (in such capacity, the “Collateral Agent”), Congress Financial
Corporation and Wells Fargo Retail Finance, LLC, as syndication agents (in such capacity, the “Syndication Agents”) and JPMorgan Chase Bank, as documentation agent (in such capacity, the “Documentation Agent”).

  
 WHEREAS, the Borrowers, the Lenders, the Administrative Agent,
the Collateral Agent, the Syndication Agents and the Documentation Agent are parties to that certain Credit Agreement dated as of October 18, 2002 (as amended, extended, supplemented or otherwise modified from time to time, the “Credit
Agreement”). Capitalized terms used herein without definition shall have the meanings assigned to them in the Credit Agreement. 
  
 WHEREAS, the Borrowers have requested (i) a temporary waiver of certain financial covenants applicable for the fiscal period ended June 28, 2003; (ii)
certain modifications to the financial reporting covenants contained in the Credit Agreement; and (iii) a further extension of time by which they will be required to deliver to the Administrative Agent and the Lenders their quarterly and annual
financial statements and corresponding Compliance Certificates pursuant to Sections 6.1(a), (b) and (c) of the Credit Agreement for the fiscal quarters ending September 28, 2002, March 29, 2003 and June 28, 2003 and the fiscal year ending December
28, 2002. 
  
 NOW, THEREFORE, in consideration of the premises set
forth above, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrowers, the Lenders and the Administrative Agent agree as follows: 
  
 1. Temporary Waiver Under Credit Agreement. The Borrowers have
informed the Administrative Agent that they will not know if they will meet the minimum Consolidated EBITDA required by Section 7.11(a) of the Credit Agreement for the two fiscal quarters ended June 28, 2003, until the restatement of the accounts
payable, the retained earnings and net income of the Lead Borrower and its Subsidiaries for prior fiscal periods through September 28, 2002 (the “Accounting Restatement Matter”) is finalized. The Lenders hereby temporarily waive any
Default or Event of Default existing or arising out of the Borrowers’ failure to comply with the provisions of Section 7.11(a) of the Credit Agreement as of and for the two fiscal quarter period ended June 28, 2003 until the earlier of the
completion of the Accounting Restatement Matter or October 31, 2003. 
  
 2. Amendments to Credit Agreement. 
  
 (a) Section 6.1 of the Credit Agreement is hereby amended by adding the following new subsection immediately following Section 6.1(b) thereof: 

 “(b-1) within 45 days after the end of each fiscal month, the internally prepared
unaudited consolidated and consolidating by division balance sheets and related statement of operations of the Borrowers and the internally prepared unaudited consolidated statement of cash flows of the Borrowers, each as of the end of and for such
fiscal month and the elapsed portion of the fiscal year, together with a comparison to the results for the same period in the immediately preceding fiscal year, all certified by one of the Lead Borrower’s Financial Officers as presenting fairly
in all material respects the financial condition and results of operations of the Borrowers on a consolidated basis and of each such division (if applicable) in accordance with GAAP consistently applied, subject to normal year end audit adjustments,
the absence of footnotes, and the Accounting Restatement Matter;” 
  
 (b) The Administrative Agent and each of the Lenders hereby agree that the time by which the Borrowers shall be required to deliver their annual financial statements under Section 6.1(a) for the fiscal year ending
December 28, 2002, their quarterly financial statements under Section 6.1(b), and the corresponding Compliance Certificates under Section 6.1(c) of the Credit Agreement, for the fiscal quarters ended September 28, 2002, March 29, 2003 and June 28,
2003, respectively, is hereby extended to the earlier of: (i) the date by which the Lead Borrower files with the Securities and Exchange Commission its Form 10Q reports for the fiscal quarters ended September 28, 2002, March 29, 2003 and June 28,
2003, respectively, and its Form 10K report for the fiscal quarter ended December 28, 2002, or (ii) October 31, 2003. 
  
 3. Conditions to Effectiveness. The extension contemplated by this Amendment shall become effective upon the satisfaction of the following
conditions: 
  
 (a) the Administrative Agent
shall have received counterparts hereof executed by each of the Required Lenders, the Administrative Agent and the Borrowers; 
  
 (b) all representations and warranties contained in this Amendment shall be true and correct in all material respects; 
  
 (c) no event shall have occurred and be continuing which
constitutes an Event of Default or a Default (except as to the specific matters covered hereby); and 
  
 (d) the Borrowers shall have paid the fees agreed to be paid by the Borrowers in connection with this Amendment. 
  
 4. Reference to and Effect on the Loan Documents. On and after
the effective date of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the
Credit Agreement, as modified by this Amendment, and each reference in the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and
be a reference to the Credit Agreement, 

  

 2 

 
as modified by this Amendment. The Credit Agreement and all other Loan Documents are and shall continue to be in full force and effect and are hereby in all
respects ratified and confirmed. 
  
 5. Specific
Representations as to the Accounting Restatement Matter. Each of the Borrowers represents and warrants that the maximum potential impact to earnings with respect to the Accounting Restatement Matter does not and will not exceed $55,000,000
in the aggregate. In the event such maximum aggregate amount exceeds $55,000,000, such event shall constitute an Event of Default under Section 8.1(c) of the Credit Agreement. Each of the Borrowers further represents and warrants that the Accounting
Restatement Matter in the aggregate does not and will not negatively affect the Collateral or the Borrowing Base in any manner and except as specifically waived herein, none of the financial covenants set forth in Section 7.11 of the Credit
Agreement will be breached with respect to the fiscal quarter ended September 28, 2002 or thereafter as a result of the Accounting Restatement Matter. In the event the Accounting Restatement Matter in the aggregate negatively affects the Collateral
or the Borrowing Base or in the event any of such financial covenants are breached (except as specifically temporarily waived herein or as previously waived in writing) as a result of the Accounting Restatement Matter, the same shall constitute an
Event of Default under Section 8.1(c) of the Credit Agreement. 
  
 6. Miscellaneous. 
  
 (a)
Representations and Warranties. Each of the Borrowers represents and warrants that: 
  
 (i) it is duly organized, validly existing corporation in good standing under the laws of the jurisdiction of its organization and has the
corporate power and authority to execute, deliver and carry out the terms and provisions of this Amendment and has taken or caused to be taken all necessary corporate action to authorize the execution, delivery and performance of this Amendment;

  
 (ii) no consent of any other person,
including, without limitation, shareholders, creditors or Subsidiaries of either of the Borrowers, and no action of, or filing with, any governmental or public body or authority, is required to authorize, or is otherwise required in connection with
the execution, delivery and performance of, this Amendment; 
  
 (iii) this Amendment has been duly executed and delivered by a duly authorized officer on behalf of each of the Borrowers, and constitutes its legal, valid and binding obligations, enforceable in accordance with its
terms, except as enforcement thereof may be subject to the effect of any applicable (A) bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally and (B) general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law); and 
  
 (iv) the execution, delivery and performance of this Amendment will not violate any law, statute or regulation applicable to either of the Borrowers or 

  

 3 

 
any order or decree of any court or governmental instrumentality applicable to it, or conflict with, or result in the breach of, or constitute a default
under, any of its contractual obligations. 
  
 (b) No
Waiver. Except as to the specific matters covered hereby, nothing herein contained shall constitute a waiver or be deemed to be a waiver, of any existing Default or Event of Default, and the Lenders and the Administrative Agent are entering into
this Amendment without prejudice and hereby reserve all rights and remedies granted to them by the Credit Agreement, by the other Loan Documents, by law and otherwise. 
  
 (c) Counterparts. This Amendment may be executed in any number of separate counterparts, each of which shall
collectively and separately constitute one agreement. Delivery of an executed counterpart of a signature page to this Amendment by facsimile shall be effective as delivery of a manually executed counterpart of this Amendment. 
  
 (d) GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAWS OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES). 
  
 [Signature pages to follow] 
  

 4 

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

	 FOOTSTAR, INC., as a Borrower

		
	 By:
	 	 /s/ Stephen R. Wilson

	 	 	 Name:
	 	 Stephen R. Wilson

	 	 	 Title:
	 	 Executive Vice President and C.F.O.

	
	 FOOTSTAR CORPORATION, as a Borrower

		
	 By:
	 	 /s/ Stephen R. Wilson

	 	 	 Name:
	 	 Stephen R. Wilson

	 	 	 Title:
	 	 Executive Vice President and C.F.O.

  
 Signature Page
to Amendment No. 3 to Credit Agreement 

	 FLEET NATIONAL BANK, as Administrative
 Agent and as Lender

		
	 By:
	 	 /S/    KEITH
VERCAUTEREN

	 	 	 Name:
	 	 Keith Vercauteren

	 	 	 Title:
	 	 Vice President

	
	 FLEET RETAIL FINANCE INC., as Collateral
 Agent

		
	 By:
	 	 /S/    KEITH
VERCAUTEREN

	 	 	 Name:
	 	 Keith Vercauteren

	 	 	 Title:
	 	 Vice President

  
 Signature Page
to Amendment No. 3 to Credit Agreement 

	 BACK BAY CAPITAL FUNDING LLC

		
	 By:
	 	 /s/ Kristan M. O’Connor

	 	 	 Name:
	 	 Kristan M. O’Connor

	 	 	 Title:
	 	 Director

  
 Signature Page
to Amendment No. 3 to Credit Agreement 

	 CONGRESS FINANCIAL CORPORATION

		
	 By:
	 	 /s/ Thomas Grabosky

	 	 	 Name:
	 	 Thomas Grabosky

	 	 	 Title:
	 	 First Vice President

  
 Signature Page
to Amendment No. 3 to Credit Agreement 

	 WELLS FARGO FOOTHILL, INC.

	 (fka WELLS FARGO RETAIL FINANCE, LLC)

		
	 By:
	 	 /s/ EUNNIE KIM

	 	 	 Name:
	 	 EUNNIE KIM

	 	 	 Title:
	 	 ASST. VICE PRESIDENT

  
 Signature Page
to Amendment No. 3 to Credit Agreement 

	 JPMORGAN CHASE BANK

		
	 By:
	 	 /s/ Dale A. Pensgen

	 	 	 Name:
	 	 Dale A. Pensgen

	 	 	 Title:
	 	 Vice President

  
 Signature Page
to Amendment No. 3 to Credit Agreement 

	 THE CIT GROUP/BUSINESS CREDIT, INC.

		
	 By:
	 	 /s/ STEVEN SCHUIT

	 	 	 Name:
	 	 STEVEN SCHUIT

	 	 	 Title:
	 	 VICE PRESIDENT

	 	 	 	 	 TEAM LEADER

  
 Signature Page
to Amendment No. 3 to Credit Agreement 

	 UPS CAPITAL CORPORATION

		
	 By:
	 	 /s/ Charles Johnson

	 	 	 Name:
	 	 Charles Johnson

	 	 	 Title:
	 	 SVP

  
 Signature Page
to Amendment No. 3 to Credit Agreement 

	 AMSOUTH BANK

		
	 By:
	 	 /s/ Kathleen F. D’Angelo

	 	 	 Name:
	 	 Kathleen F. D’Angelo

	 	 	 Title:
	 	 Attorney-In-Fact

  
 Signature Page
to Amendment No. 3 to Credit Agreement 

	 NATIONAL CITY BANK

		
	 By:
	 	 /s/ Thomas J. McDonnell

	 	 	 Name:
	 	 Thomas J. McDonnell

	 	 	 Title:
	 	 Senior Vice President

  
 Signature Page
to Amendment No. 3 to Credit Agreement 

	 ORIX FINANCIAL SERVICES, INC.

		
	 By:
	 	 /s/ Andrew Kosowsky

	 	 	 Name:
	 	 Andrew Kosowsky

	 	 	 Title:
	 	 Vice President

  
 Signature Page
to Amendment No. 3 to Credit Agreement 

	 SIEMENS FINANCIAL SERVICES, INC.

		
	 By:
	 	 /s/ NJ Ranmiso

	 	 	 Name:
	 	 NJ Ranmiso

	 	 	 Title:
	 	 SVP

  
 Signature Page
to Amendment No. 3 to Credit Agreement 

 ACKNOWLEDGEMENT AND CONSENT BY GUARANTORS 
  
 Each of the undersigned Guarantors does hereby acknowledge and consent to the
execution, delivery and performance of the within foregoing Amendment, confirms the continuing effect of such Guarantor’s guarantee of the Obligations after giving effect to the foregoing Amendment, and agrees to the provisions of the within
and foregoing Amendment. 
  
 Accepted and agreed to as of June 28,
2003 by the Facility Guarantors: 
  

	 FOOTSTAR CENTER, INC.

	 FOOTACTION CENTER, INC.

	 ATHLETIC CENTER, INC.

	 FA HQ, INC.

	 FEET HQ, INC.

	 FWS I, INC.

	 FWS II, INC.

	 STELLAR WHOLESALING, INC.

	 FEET CENTER, INC.

	 MELDISCO H.C., INC.

	 APACHE-MINNESOTA THOM MCAN, INC.

	 MILES SHOES MELDISCO LAKEWOOD, COLORADO, INC.

	 MALL OF AMERICA FAN CLUB, INC.

	 NEVADA FEET, INC.

	 FEET OF COLORADO, INC.

	 LFD I, INC.

	 LFD II, INC.

	 LFD OPERATING, INC.

	 FOOTSTAR HQ, LLC

	 SHOE ZONE CENTER, INC.

	 LFD TODAY, INC.

	 ATHLETIC ATTIC OF TEXAS, INC.
and each of their Subsidiaries, including all other Facility Guarantors

	
	 By:  /S/    DONNA
WANGENSTER

	         Duly Authorized Signatory as to all<PAGE>

                                                                    EXHIBIT 10.9

                       NINTH AMENDMENT TO CREDIT AGREEMENT

                          PERTAINING TO CREDIT FACILITY

                                   ESTABLISHED

                                  IN FAVOUR OF

                        KINGSWAY FINANCIAL SERVICES INC.

                      AND KINGSWAY U.S. FINANCE PARTNERSHIP

<PAGE>

                                                                    Exhibit 10.9

        THIS NINTH AMENDMENT TO CREDIT AGREEMENT, dated as of May 27, 2003, is
among:

                        KINGSWAY FINANCIAL SERVICES INC.
                      AND KINGSWAY U.S. FINANCE PARTNERSHIP

                                  As Borrowers

                                       AND

                       The Lenders named herein as Lenders

                                       AND

                       LASALLE BANK NATIONAL ASSOCIATION,
                As Administrative Agent and Co-Syndications Agent

                                       AND

                       CANADIAN IMPERIAL BANK OF COMMERCE,
                As Co-Syndications Agent and Documentation Agent

        WHEREAS:

     1. Pursuant to a Credit Agreement made as of the 23rd day of February, 1999
among the parties hereto, as subsequently amended (the "Credit Agreement"), the
Lenders and the Agents established certain credit facilities in favour of the
Borrowers;

     2. The Agents, the Lenders and the Borrowers have agreed to amend certain
terms and conditions of the Credit Agreement, in the manner hereinafter set
forth;

        FOR VALUABLE CONSIDERATION, the parties agree as follows:

                                   ARTICLE I

                           AMENDMENT TO INTERPRETATION

Additional Permitted Indebtedness. Section 1.01(84) of the Credit Agreement is
hereby amended by deleting the period found at the end of sub-section
1.01(84)(xvi) and replacing such period with a semi-colon, by adding the word
"and" immediately following the semi-colon and by adding the following as
sub-section 1.01(84)(xvii):

     "(xvii) Indebtedness in connection with the Cdn $66,500,000 Amended Credit
     Agreement dated as of May 27, 2003 (the "Amended Credit Agreement"), among
     the Borrowers, HSBC Bank Canada, as lender, Canadian Imperial Bank of
     Commerce, as lender and as Administrative Agent, LaSalle Bank National
     Association, as lender and as Syndication Agent, Canadian

<PAGE>

     Imperial Bank of Commerce, New York Agency, and CIBC World Markets, as Sole
     Lead Arranger and Bookrunner."

                             AMENDMENT TO COVENANTS

Amendment to No Guarantees Covenant. Sub-section 8.03(5) of the Credit Agreement
is hereby amended by: (A) deleting the word "and" at the end of sub-section
8.03(5)(viii), and all of sub-section (ix); and (B) inserting the following
immediately after sub-section 8.03(5)(viii):

     "(ix) the Guarantee issued by Guarantor in connection with the Amended
     Credit Agreement; and
     (x) as otherwise permitted hereunder."

                     CONDITIONS PRECEDENT TO THIS AGREEMENT

Conditions Precedent. The amendments set forth in this Ninth Amendment to Credit
Agreement shall not become effective until (a) the execution and delivery of
this Ninth Amendment to Credit Agreement by the Borrowers and the Majority of
the Lenders and (b) the receipt by the Agent of the executed copy of the Amended
Credit Agreement, together with all schedules and exhibits, and all ancillary
documents contemplated by the Amended Credit Agreement.

                                  MISCELLANEOUS

Nature of Amendments and Defined Terms. It is acknowledged and agreed that the
terms of this Ninth Amendment to Credit Agreement are in addition to and, unless
specifically provided for, shall not limit, restrict, modify, amend or release
any of the understandings, agreements or covenants as set out in the Credit
Agreement. The Credit Agreement shall henceforth be read and construed in
conjunction with this Ninth Amendment to Credit Agreement and the Credit
Agreement together with all of the powers, provisions, conditions, covenants and
agreements contained or implied in the Credit Agreement shall be and shall
continue to be in full force and effect. References to the "Credit Agreement" or
the "Agreement" in the Credit Agreement or in any other document delivered in
connection with, or pursuant to, the Credit Agreement, shall mean the Credit
Agreement, as amended hereby. Capitalized terms utilized in this agreement but
not defined in this Agreement shall have the meanings ascribed to such terms in
the Credit Agreement.

<PAGE>

Assignment. This Ninth Amendment to Credit Agreement shall enure to the benefit
of and be binding upon the parties hereto and their respective successors and
assigns but shall not be assignable by the Borrowers or either of them without
the prior written consent of the Agents and Lenders.

Severability. Any provision of this Ninth Amendment to Credit Agreement which is
prohibited or unenforceable in any jurisdiction shall not invalidate the
remaining provisions hereof and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

Governing Law. This Ninth Amendment to Credit Agreement shall be governed by and
construed in accordance with the laws of the Province of Ontario and the laws of
Canada applicable therein and shall be treated in all respects as an Ontario
contract and the parties hereby submit and attorn to the non-exclusive
jurisdiction of the courts of the Province of Ontario.

Further Assurances. The Borrowers shall from time to time and at all times
hereafter, upon every reasonable request from the Agents or the Lenders, make,
do, execute and deliver or cause to be made, done, executed and delivered, all
such further acts, deeds and assurances and things as may be necessary in the
opinion of the Agents for more effectually implementing and carrying out the
true intent and meaning of this Ninth Credit Amending Agreement.

Counterparts. This Ninth Amendment to Credit Agreement may be executed in any
number of counterparts, each of which shall constitute an original and all of
which, taken together, shall constitute one and the same agreement.

<PAGE>

         IN WITNESS WHEREOF the parties hereto have executed this Ninth
Amendment to Credit Agreement.

                        KINGSWAY FINANCIAL SERVICES INC.

                        By: /s/ William G. Star
                            ----------------------------------------------------
                            William G. Star
                            President & Chief Executive Officer

                        By: /s/ W. Shaun Jackson
                            ----------------------------------------------------
                            W. Shaun Jackson
                            Executive Vice President & Chief Financial Officer

                        KINGSWAY U.S. FINANCE PARTNERSHIP
                        by its Partners

                            KINGSWAY FINANCIAL SERVICES INC.

                        By: /s/ W. Shaun Jackson
                            ----------------------------------------------------
                            W. Shaun Jackson
                            Executive Vice President & Chief Financial Officer

                            METRO CLAIM SERVICES INC.

                        By: /s/ W. Shaun Jackson
                            ----------------------------------------------------
                            W. Shaun Jackson
                            Executive Vice President & Chief Financial Officer

<PAGE>

                        CANADIAN IMPERIAL BANK OF COMMERCE

                        By: /s/ Ralph Sehgal
                            ----------------------------------------------------
                            Ralph Sehgal
                            Executive Director

                        By: /s/ Warren Lobo
                            ----------------------------------------------------
                            Warren Lobo
                            Director

                        LASALLE BANK NATIONAL ASSOCIATION

                        By: /s/ Brad Kronland
                            ----------------------------------------------------
                            Brad Kronland
                            Assistant Vice President

                        LASALLE BANK NATIONAL ASSOCIATION,
                        AS ADMINISTRATIVE AGENT

                        By: /s/ Brad Kronland
                            ----------------------------------------------------
                            Brad Kronland
                            Assistant Vice President

                        CANADIAN IMPERIAL BANK OF COMMERCE,
                        AS DOCUMENTATION AGENT

                        By: /s/ Ralph Sehgal
                            ----------------------------------------------------
                            Ralph Sehgal
                            Executive Director

                        By: /s/ Warren Lobo
                            ----------------------------------------------------
                            Warren Lobo
                            Director

                        CANADIAN IMPERIAL BANK OF COMMERCE
                        NEW YORK AGENCY

                        By: /s/ Geraldine Kerr
                            ----------------------------------------------------
                            Geraldine Kerr
                            Executive Director

<PAGE>

                        THE BANK OF NOVA SCOTIA

                        By: /s/ William E. Zarrett
                            ----------------------------------------------------
                            William E. Zarrett
                            Managing Director

                        WACHOVIA BANK, NATIONAL ASSOCIATION

                        By: ____________________________________________________
                            Name:
                            Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00056-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00056-of-00352.parquet"}]]