Document:

Exhibit 4.4

 

CONFORMED COPY

 

AMENDMENT NO. 1 TO

CREDIT AGREEMENT

AMENDMENT NO. 1 TO CREDIT
AGREEMENT (“Amendment No. 1”), dated as of November 21, 2004, by and among
TPG-MD INVESTMENT, LLC, a Delaware limited liability Borrower (the “Lender”),
J. CREW OPERATING CORP., a Delaware corporation (the “Borrower”), J.
CREW GROUP, INC. (the “Parent”) and each of GRACE HOLMES INC., a
Delaware corporation doing business as J. Crew Retail, H.F.D. NO. 55, INC., a
Delaware corporation doing business as J. Crew Factory, J.
CREW, INC., a New Jersey corporation, and J. CREW INTERNATIONAL, INC., a
Delaware corporation, as guarantors (each a “Guarantor”) and together
with any subsidiary that executes a Note Guarantee (the “Guarantors”).

 

WHEREAS, the Lender, the Borrower, Parent and the
Guarantors have entered into financing arrangements pursuant to which the
Lender has made and may make loans and advances and provide other financial
accommodations to the Borrower as set forth in the Credit Agreement, dated as
of February 4, 2003, by and among the Lender, the Borrower, Parent and the
Guarantors (as the same now exists and may hereafter be further amended,
modified, supplemented, extended, renewed, restated or replaced, the “Credit
Agreement”); 

 

WHEREAS, the Borrower, J. CREW INTERMEDIATE
LLC, a Delaware limited liability company (“Intermediate”) and the
Guarantors desire to enter into certain financing arrangements with one or more
entities affiliated with BLACK CANYON CAPITAL LLC (collectively, “Black
Canyon”) pursuant to which Borrower proposes to incur up to $325,000,000 of
indebtedness under the Black Canyon Documents (as defined below), the proceeds
of which will be used by the Borrower to (i) redeem in full all of the
indebtedness of the Borrower arising under the 10 3/8% Senior Subordinated
Notes due 2007 issued by the Borrower and (ii) to make intercompany loans to
Intermediate from time to time, the proceeds of which will be used by to prepay
a portion of the 16.0% Senior Discount Contingent Principal Notes due 2008 issued
by Intermediate;

 

WHEREAS, the Borrower has requested that the
Lender consent to the subordination in right of payment of the Tranche A Loan
evidenced by the Tranche A Note to the indebtedness of the Borrower arising
under the Black Canyon Documents; and

 

WHEREAS, the Lender is willing to make such amendments
to the extent and subject to terms and conditions set forth herein.

 

NOW, THEREFORE, the
Lender, the Borrower, Parent and the Guarantors hereby agree as follows:

 

Section 1                                               Definitions.

 

1.1                                 Additional Definitions. As used herein, the following terms
shall have the respective meanings given to them below and the Credit Agreement
shall be deemed and Section 9.01 is hereby amended to include, in addition
and not in limitation of, each of the following definitions:

 

 

(a)          “Amendment No. 1” shall mean this
Amendment No. 1 to the Credit Agreement by and among the Lender, the Borrower,
Parent and the Guarantors, as the same now exists and may hereafter be further
amended, modified, supplemented, extended, renewed, restated or replaced.

 

(b)         “Black
Canyon Credit Agreement” shall mean the Credit Agreement, dated as of the
Effective Date, between the Borrower, as borrower, the Black Canyon Guarantors, the lenders named therein and U.S. Bank
National Association, as administrative agent, as the same now exists or may
hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced.

 

(c)          “Black
Canyon Documents” shall mean, collectively the following (as the same may
now or hereafter exist or may hereafter be amended, modified, supplemented,
extended, renewed, restated or replaced): 
1. the Black Canyon Credit Agreement (including any loan notes and loan
guarantees issued thereunder), 2. the Black Canyon
Indenture (including any notes and guarantees issued thereunder), 3. the Black Canyon Security Agreement, 4. the
Black Canyon Intercreditor Agreement and 5. all other
agreements, documents and instruments now or at any time hereafter executed
and/or delivered by the Borrower or any other person in connection therewith.

 

(d)         “Black Canyon Guarantors” shall mean,
collectively, the Guarantors and any subsidiary of the Borrower or its
subsidiaries formed after the Effective Date, or Intermediate on or after the
date of the execution and delivery of the Black Canyon Indenture, that
guarantees the indebtedness under the Black Canyon Credit Agreement or the
Black Canyon Indenture, to the extent required to do so under the terms
thereof, pursuant to the form of loan guarantee attached as Exhibit B to the
Black Canyon Credit Agreement (or the equivalent form attached to the Black
Canyon Indenture), and their respective successors and assigns, sometimes being
referred to individually as a “Black Canyon Guarantor”.

 

(e)          “Black
Canyon Indebtedness” shall mean indebtedness of the Borrower and the Black
Canyon Guarantors incurred pursuant to the Black Canyon Documents.

 

(f)            “Black
Canyon Indenture” shall mean the Indenture to be entered into among the
Borrower, as issuer, the Black Canyon
Guarantors and U.S. Bank National Association in its capacity as trustee
thereunder, in the form included as an exhibit to the Black Canyon Credit
Agreement.

 

(g)         “Black
Canyon Intercreditor Agreement” shall mean the Intercreditor Agreement,
dated as of the Effective Date, by and among the senior credit agent named
therein, U.S. Bank National Association, as collateral agent, the Borrower,
Intermediate and the Black Canyon Guarantors, as the same now exists or may
hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced.

 

2

 

(h)         “Black
Canyon Security Agreement” shall mean the Security Agreement, dated as of
the Effective
Date, by the Borrower, Intermediate and the Black Canyon Guarantors in favor of
U.S. Bank National Association, as collateral agent, as such Security Agreement
as may hereafter be amended, modified, supplemented, extended, renewed,
restated or replaced.

 

(i)             “Closing
Date” shall mean the date of the initial funding of the loans under the
Black Canyon Credit Agreement.

 

(j)             “Effective
Date” shall mean the date of the execution of the Black Canyon Credit
Agreement.

 

1.2                                 Amendment to Definitions.  Section 9.01
is hereby by amended as follows:

 

(a)          The term “Senior Subordinated Notes” and the
definition thereof is hereby deleted in its entirety.

 

(b)         The term “Senior Subordinated Notes
Indenture” and the definition thereof is hereby
deleted in its entirety.

 

1.3                                 Interpretation. For purposes of this Amendment No. 1,
all terms used herein, including those terms used or defined in the recitals
hereto, shall have the respective meanings assigned thereto in the Credit
Agreement.

 

Section 2.                                            Replacement of Terms.

 

2.1                                 The final sentence of Section 2.01(b)
is hereby amended to delete the reference to the term “Senior Subordinated
Notes Indenture” contained therein and substitute the following therefor: “Black
Canyon Documents”.

 

2.2.                              The first sentence of Section 2.02(a)
is hereby amended to delete the reference to the term “Senior Subordinated Notes
Indenture” contained therein and substitute the following therefor: “Black
Canyon Credit Agreement or the Black Canyon Indenture, as then in effect”.

 

2.3                                 Section 8.03 is hereby amended to
delete all references to the term “Senior Subordinated Notes Indenture”
contained therein and substitute the following therefor: “Black Canyon Credit
Agreement or the Black Canyon Indenture, as then in effect”.

 

Section 3.                                            Subordination.

 

3.1                                 Section 6.01 of the Credit Agreement
is hereby deleted in its entirety and the following is substituted therefor:

 

“SECTION 6.01              Agreement to Subordinate.

 

(a) The Borrower agrees, and the Lender agrees, that the payment of the Loans evidenced by the Notes is subordinated on
the same terms and to the same extent as Black Canyon Indebtedness in right of payment to the prior payment in

 

3

 

full of all Senior Debt (as defined in the Black Canyon Credit Agreement or the Black Canyon
Indenture, as then in effect)
(whether outstanding on the Closing Date or created, incurred, assumed or
guaranteed thereafter), and that the subordination is for the benefit of the
holders of Senior Debt of the Borrower.

 

(b) The Borrower agrees, and the Lender agrees with regard to the
Tranche A Loan, as evidenced by the Tranche
A Note, that the payment of the Tranche A Loans, as evidenced by the
Tranche A Note, is subordinated in right of payment, to the extent and in the
manner provided in the remainder of this Article VI, to the prior payment
in full in cash of Black Canyon Indebtedness (whether outstanding on the
Closing Date or created, incurred, assumed or guaranteed thereafter), and that
this subordination is for the benefit of the holders of Black Canyon
Indebtedness.

 

(c) In the case of the Tranche B
Loan, as evidenced by the Tranche B Note, such Tranche B Loan, as evidenced by
the Tranche B Note, ranks and will rank at all times pari passu with Black Canyon Indebtedness.

 

SECTION 6.02                    Liquidation;
Dissolution; Bankruptcy.

 

With regard to the Tranche A Note, the holders of Black Canyon
Indebtedness will be entitled to receive payment in full in cash of all
Obligations (as defined in the Black Canyon Credit Agreement or the Black
Canyon Indenture, as then in effect) due in respect of Black Canyon Indebtedness
(including interest after the commencement of any bankruptcy proceeding at the
rate that would be applicable under the terms of the documentation governing
Black Canyon Indebtedness and other reasonable fees, costs or charges provided
for under the Black Canyon Documents which would accrue and become due under
the terms of the Black Canyon Documents but for the commencement of any case in
bankruptcy, in each case as to such interest or other amounts whether or not
allowed or allowable in whole or in part in such case) before the Lender will
be entitled to receive any payment (by setoff or otherwise) with respect to the
Tranche A Note:

 

(a)          in a liquidation or dissolution of the
Borrower;

 

(b)         in a bankruptcy, reorganization,
insolvency, receivership or similar proceeding relating to the Borrower or its
property;

 

(c)          in an assignment for the benefit of the
Borrower’s creditors; or

 

(d)         in any marshaling of the Borrower’s assets
and liabilities.

 

and, if any of the
foregoing shall have occurred, until all Obligations with respect to Black
Canyon Indebtedness are paid in full in cash, any payment or distribution to
which the Lender would be entitled with respect to the Tranche A Note shall be
made to the holders of Black Canyon Indebtedness.

 

4

 

SECTION 6.03                    Default On Black Canyon Indebtedness.

 

(a) The Borrower shall not make any payment (by setoff or otherwise) in
respect of the Tranche A Note if (i) a default in the payment of the
principal or premium, if any, or interest on Black Canyon Indebtedness occurs
and is continuing beyond any applicable grace period or (ii) any other default
occurs and is continuing with respect to Black Canyon Indebtedness that permits
holders of Black Canyon Indebtedness to accelerate their maturity, and the
Lender receives a notice of such default (a “Payment Blockage Notice”)
from the holders of Black Canyon Indebtedness or any agent or trustee for such
holders.  Payments on the Tranche A Note
may and shall be resumed (a) in the case of a payment default, upon the date on
which such default is cured or waived and (b) in case of a nonpayment default,
the earlier of the date on which such nonpayment default is cured or waived or
179 days after the date on which the applicable Payment Blockage Notice is
received, unless a payment default has occurred and is continuing (as a result
of the maturity of Black Canyon Indebtedness having been accelerated).  No new period of payment blockage (other than
for a payment default) may be commenced by the holders of Black Canyon
Indebtedness or any agent or trustee for such holders unless and until
(i) 360 days have elapsed since the effectiveness of the immediately prior
Payment Blockage Notice and (ii) all scheduled payments of principal, premium, if
any, and interest on the Tranche A Note that have come due have been paid in
full in cash.  No nonpayment default that
existed or was continuing on the date of delivery of any Payment Blockage
Notice to the Lender shall be, or be made, the basis for a subsequent Payment
Blockage Notice unless such default shall have been cured or waived for a
period of not less than 90 days.

 

(b) Whenever the Borrower is prohibited from making any payment in
respect of the Tranche A Note, the Borrower also shall be prohibited from
making, directly or indirectly, any payment of any kind on account of the
prepayment of the Tranche A Note.  If the
Lender receives any payment or distribution that the Lender is not entitled to
receive with respect to the Tranche A Note, the Lender shall be required to pay
the same over to the holders of Black Canyon Indebtedness, or any
representative of such holders under the indenture or other agreement (if any)
pursuant to which Black Canyon Indebtedness may have been issued (the “Black
Canyon Representative”), provided, however, that if the Lender
shall have received a Payment Blockage Notice from the holders of Senior Debt
or any agent or trustee for such holders pursuant to the application of Section 6.01(a),
then such payment shall not be required to be made to such holders of Black
Canyon Indebtedness or such Black Canyon Representative to the extent that the
Lender shall be required to pay any such payment or distribution to the holders
of Senior Debt, or any representative of such holders under the indenture or
other agreement (if any) pursuant to which Senior Debt may have been issued
(the “Senior Debt Representative”).

 

5

 

SECTION 6.04                    Acceleration
of Notes.

 

If payment of the Tranche A Note is accelerated because of an Event of
Default, the Borrower shall promptly notify holders of Black Canyon
Indebtedness of the acceleration.

 

SECTION 6.05                    When Distribution Must Be Paid Over.

 

(a) In the event that the Lender receives any payment (including a
payment by a Guarantor under its Note Guarantee) of any obligations with
respect to the Tranche A Note at a time when the Lender has actual knowledge
that such payment is prohibited by Section 6.03 hereof, such payment shall
be held by the Lender, in trust for the benefit of, and shall be paid forthwith
over and delivered, upon written request, to, the holders of Black Canyon
Indebtedness as their interests may appear, or the Black Canyon Representative,
as its interests may appear, for application to the payment of all Obligations
with respect to Black Canyon Indebtedness remaining unpaid to the extent
necessary to pay such Obligations in full in accordance with their terms, after
giving effect to any concurrent payment or distribution to or for the holders
of such Black Canyon Indebtedness, provided, however, that in the
event that the Lender receives any payment (including a payment by a Guarantor
under its Note Guarantee) of any obligations with respect to the Tranche A Note
at a time when the Lender also has actual knowledge that such payment is
prohibited pursuant to the application of Section 6.01(a) hereof, such
payment shall be held by the Lender, in trust for the benefit of, and shall be
paid forthwith over and delivered, upon written request, to the holders of
Senior Debt or the Senior Debt Representative to the extent required by the
terms of the documentation governing Senior Debt.

 

(b) With respect to the holders of Black Canyon Indebtedness, the
Lender undertakes to perform only such obligations on the part of the Lender as
are specifically set forth in this Article VI, and no implied covenants or
obligations with respect to the holders of Black Canyon Indebtedness shall be
read into this Credit Agreement against the Lender with respect to the Tranche
A Note.

 

SECTION 6.06                    Notice by the Borrower.

 

The Borrower shall promptly notify the Lender of any facts known to the
Borrower that would cause a payment of any obligations with respect to the
Notes to violate this Article VI, but failure to give such notice shall
not affect the subordination of the Notes to Senior Debt and Black Canyon
Indebtedness as provided in this Article VI.

 

SECTION 6.07                    Subrogation.

 

After all Black Canyon Indebtedness is paid in full in cash and until
the Tranche A Note is paid in full, the Lender shall be subrogated with respect
to the Tranche A Note (equally and ratably with all other Indebtedness pari passu with the Tranche A Note) to the
rights of holders of Black Canyon Indebtedness to

 

6

 

receive distributions applicable to Black Canyon
Indebtedness to the extent that distributions otherwise payable to the Lender
with respect to the Tranche A Note have been applied to the payment of Black
Canyon Indebtedness.  A distribution made
under this Article VI to holders of Black Canyon Indebtedness that
otherwise would have been made to the Lender with respect to the Tranche A Note
is not, as between the Borrower and Lender, a payment by the Borrower on the
Tranche A Note.

 

SECTION 6.08                    Relative Rights.

 

(a) This Article VI defines the relative rights of the Lender with
respect to the Notes and holders of Senior Debt and Black Canyon
Indebtedness.  Nothing in this Indenture
shall:

 

(i)                       impair, as between the Borrower and the Lender,
the obligations of the Borrower, which are absolute and unconditional, to pay
principal of and interest on the Notes in accordance with its terms;

 

(ii)                    affect the relative rights of Lender and
creditors of the Borrower other than their rights in relation to holders of
Senior Debt and Black Canyon Indebtedness; or

 

(iii)                 prevent the Lender from exercising its available
remedies upon a Default or Event of Default, subject to the rights of holders
of Senior Debt and Black Canyon Indebtedness to receive distributions and
payments otherwise payable to the holder of the Notes.

 

(b) If the Borrower fails because of this Article VI to pay
principal of or interest on the Notes on the due date, the failure is still a
Default or Event of Default.

 

SECTION 6.09                    Subordination
May Not Be Impaired by the Borrower.

 

No right of any holder of Senior Debt or Black Canyon Indebtedness to
enforce the subordination of the Indebtedness (as defined in the Black Canyon
Credit Agreement or the Black Canyon Indenture, as then in effect) evidenced by
the Notes shall be impaired by any act or failure to act by the Borrower, any
subsidiary of the Borrower or the Lender or by the failure of the Borrower, any
subsidiary of the Borrower or the Lender to comply with this Credit Agreement.

 

SECTION 6.10                    Distribution or Notice of Representative.

 

(a) Whenever a distribution is to be made or a notice given to holders
of Black Canyon Indebtedness, the distribution may be made and the notice given
to the Black Canyon Representative of such holders.

 

7

 

(b) Upon any payment or distribution of assets of the Borrower referred
to in this Article VI, the Lender shall be entitled to rely upon any order
or decree made by any court of competent jurisdiction or upon any certificate
of such Black Canyon Representative or Senior Debt Representative, as the case
may be, or of the liquidating trustee or agent or other Person making any
distribution to the Lender for the purpose of ascertaining the Persons entitled
to participate in such distribution, the holders of Black Canyon Indebtedness
and Senior Debt and other Indebtedness of the Borrower, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article VI.

 

SECTION 6.11                    Amendments.

 

Any amendment to the provisions of this Article VI shall require
the consent of (a) the majority of the holders of Black Canyon
Indebtedness if such amendment would adversely affect the rights of the holders
of such Black Canyon Indebtedness then outstanding (or any group or
representative thereof authorized to give such consent) and (b) the majority of
the holders of Senior Debt if such amendment would adversely affect the rights
of the holders of such Senior Debt then outstanding (or any group or
representative thereof authorized to give such consent).

 

SECTION 6.12                    Reliance
by Holders of Senior Debt on Subordination Provisions.

 

The Lender acknowledges and agrees that the foregoing subordination
provisions are, and are intended to be, with respect to the Notes, an
inducement and a consideration to each holder of any Senior Debt or Black
Canyon Indebtedness, whether such Senior Debt or Black Canyon Indebtedness was
created or acquired before or after funding of the Loans, to acquire and
continue to hold, or to continue to hold, such Senior Debt or Black Canyon
Indebtedness and such holder of such Senior Debt or Black Canyon Indebtedness
shall be deemed conclusively to have relied on such subordination provisions in
acquiring and continuing to hold, or in continuing to hold, such Senior Debt or
Black Canyon Indebtedness.”

 

Section 4                                               Exhibits.

 

4.1                                 Exhibit A (the form of the Tranche A
Note) is hereby amended by deleting the fourth paragraph therein in its
entirety and substituting the following therefor:

 

“The payment of the Loan evidenced by this Note is
subordinated in accordance with the provisions of Article VI of the Credit
Agreement in right of payment to the prior payment in full in cash of
Senior Debt (as defined in the Black
Canyon Credit Agreement or the Black Canyon
Indenture, as then in effect) and
Black Canyon Indebtedness (whether outstanding on the Closing Date or created,

 

8

 

incurred,
assumed or guaranteed thereafter), and that this subordination is for the
benefit of the holders of Senior Debt and Black Canyon Indebtedness.”

 

4.2                                 Exhibit B (the form of the Tranche B
Note) is hereby amended by deleting the fourth paragraph therein in its entirety
and substituting the following therefor:

 

“The payment of the Loan evidenced by this Note is subordinated in
accordance with the provisions of Article VI of the Credit Agreement on
the same terms and to the same extent as Black Canyon Indebtedness in right of payment to the prior payment in full of all Senior Debt (as
defined in the Black Canyon Credit Agreement or the Black Canyon
Indenture, as then in effect)
(whether outstanding on the Closing Date or created, incurred, assumed or
guaranteed thereafter), and that this subordination is for the benefit of the
holders of Senior Debt of the Borrower. 
The payment of the Loan evidenced by this Note ranks and will rank at all times pari
passu with Black Canyon Indebtedness.”

 

Section 5                                               Effectiveness.

 

5.1                                 This Amendment
shall become effective on the Closing Date.

 

Section 6                                               Miscellaneous.

 

6.1                                 Effect of this Amendment. Except as modified pursuant hereto, no
other changes or modifications to the Credit Agreement are intended or implied,
and in all other respects, the Credit Agreement is hereby specifically
ratified, restated and confirmed by all parties hereto as of the effective date
of this Amendment No. 1 in accordance with Section 5.  The Credit Agreement and this Amendment No. 1
shall be read and construed as one agreement. To the extent of conflict between
the terms of this Amendment and the Credit Agreement, the terms of this
Amendment No. 1 shall control.

 

6.2                                 Further Assurances. The parties hereto shall execute and
deliver such additional documents and take such additional actions as may be
necessary to effectuate the provisions and purposes of this Amendment No. 1.

 

6.3                                 Governing Law. The rights and obligations hereunder of
each of the parties hereto shall be governed by and interpreted and determined
in accordance with the laws of the State of New York without regard to
principals of conflicts of law or other rule of law that would result in the
application of the law of any jurisdiction other than the laws of the State of
New York.

 

6.4                                 Binding Effect. This Amendment No. 1 shall be binding
upon and inure to the benefit of each of the parties hereto and their
respective successors and assigns.

 

6.5                                 Counterparts. This Amendment No. 1 may be executed in
any number of counterparts, but all of such counterparts shall together
constitute but one and the same agreement. In making proof of this Amendment
No. 1, it shall not be necessary to produce or account for more than one
counterpart thereof signed by each of the parties thereto.  Delivery of an executed counterpart of this
Amendment No. 1 by telefacsimile shall have the same force and effect as
delivery of an original executed counterpart of this Amendment No. 1.  Any party

 

9

 

delivering an executed counterpart of this Amendment
No. 1 by telefacsimile also shall deliver an original executed counterpart of
this Amendment No. 1, but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect
of this Amendment No. 1 as to such party or any other party.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

10

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment No. 1 to be duly executed and delivered by their
authorized officers as of the date and year first above written.

 

 

	
   

  	
  TPG-MD INVESTMENT, LLC

  
	
   

  	
  as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard A.
  Ekleberry

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  J. CREW OPERATING CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Amanda J. Bokman

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  J. CREW GROUP, INC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Amanda J. Bokman

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRACE HOLMES, INC.
  d/b/a J. CREW

  RETAIL

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Amanda J. Bokman

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  H.F.D. NO. 55, INC.
  d/b/a J. CREW

  FACTORY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Amanda J. Bokman

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Chief Financial Officer

  	
   

  
								

 

 

	
   

  	
  J. CREW INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Amanda J. Bokman

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  J. CREW INTERNATIONAL,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Nicholas P.
  Lamberti

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  VP ControllerExhibit
4.5

 

CONFORMED COPY

 

AMENDMENT NO. 3 TO

LOAN AND SECURITY AGREEMENT

 

AMENDMENT NO. 3 TO LOAN AND SECURITY
AGREEMENT (“Amendment No. 3”), dated November 21, 2004, by and among J. Crew
Operating Corp., a Delaware corporation (“Operating”), J. Crew Inc., a New
Jersey corporation (“J. Crew”), Grace Holmes, Inc., a Delaware corporation
doing business as J. Crew Retail (“Retail”), H.F.D. No. 55, Inc., a Delaware
corporation doing business as J. Crew Factory (“Factory”, and together with
Operating, J. Crew and Retail, each individually a “Borrower” and collectively,
“Borrowers”), J. Crew Group, Inc., a New York corporation (“Parent”), J. Crew
International, Inc., a Delaware corporation (“JCI”), and J. Crew Intermediate
LLC, a Delaware limited liability company (“Intermediate”, and together with
Parent and JCI, each individually a “Guarantor” and collectively, “Guarantors”),
the parties from time to time to the Loan Agreement (as hereinafter defined) as
lenders (each individually, a “Lender” and collectively, “Lenders”) and
Congress Financial Corporation, a Delaware corporation, in its capacity as
administrative and collateral agent for Lenders pursuant to the Loan Agreement
(in such capacity, “Agent”).

 

W  I  T  N  E  S  S  E  T
H :

 

WHEREAS, Agent, Lenders, Borrowers and
Guarantors have entered into financing arrangements pursuant to which Agent and
Lenders have made and may make loans and advances and provide other financial
accommodations to Borrowers as set forth in the Loan and Security Agreement,
dated December 23, 2002, by and among Agent, Lenders, Wachovia Bank, National
Association, in its capacity as arranger pursuant to the Loan Agreement,
Borrowers and Guarantors, as amended by Amendment No. 1 to Loan and Security
Agreement, dated February 7, 2003 and Amendment No. 2 to Loan and Security
Agreement, dated April 4, 2003 (as the same now exists and may hereafter be
further amended, modified, supplemented, extended, renewed, restated or
replaced, the “Loan Agreement”) and the agreements, documents and instruments
at any time executed and/or delivered in connection therewith or related
thereto (collectively, together with the Loan Agreement, the “Financing
Agreements”);

 

WHEREAS, Operating proposes to incur
$275,000,000 of indebtedness under the Black Canyon Documents (as defined
below) the proceeds of which will be used by Operating to (i) redeem in full
all of the indebtedness of Operating arising under the 10 3/8% Senior
Subordinated Notes due 2007 issued by Operating and (ii) to make an
intercompany loan to Intermediate, the proceeds of which will be used by
Intermediate to redeem a portion of the existing 16.0% Senior Discount
Contingent Principal Notes due 2008 issued by Intermediate;

 

WHEREAS, upon the occurrence of certain
events, the loans made under the Black Canyon Credit Agreement will be
exchanged into new notes to be issued under the Black Canyon Indenture (as
defined below);

 

WHEREAS, the indebtedness of Operating
arising under the Black Canyon Documents will be guaranteed by Factory, JCI, J.
Crew and Retail and secured by certain assets of

 

 

Operating, Factory, JCI, J.
Crew and Retail which security interests and liens shall be junior and
subordinate to the security interests and liens of Agent therein;

 

WHEREAS, after giving effect to the
redemption of a portion of the existing 16.0% Senior Discount Contingent
Principal Notes due 2008 issued by Intermediate, the remaining balance will be
secured by certain assets of Operating, Factory, JCI, J. Crew and Retail on an
equal and ratable basis with the indebtedness of Operating arising under the
Black Canyon Documents, which security interests and liens shall be junior and
subordinate to the security interests and liens of Agent in such assets;

 

WHEREAS, Borrowers and Guarantors have
requested that Agent and Lenders consent to (a) the incurring of the
indebtedness under the Black Canyon Documents, (b) guarantees by Intermediate,
Factory, JCI, J. Crew and Retail of such indebtedness of Operating, (c) the
grant of the subordinate security interests by Operating, Intermediate,
Factory, JCI, J. Crew and Retail to U.S. Bank National Association, as
collateral agent on behalf of the lenders or holders
under the Black Canyon Documents and the holders of the 16.0% Senior Discount
Contingent Principal Notes due 2008 issued by Intermediate, in the Collateral
to secure the indebtedness evidenced thereby and the guarantees thereof on an
equal and ratable basis, (e) the redemption by Operating of the 10 3/8% Senior
Subordinated Notes due 2007 with the proceeds of the loans under the Black
Canyon Credit Agreement, (f) the intercompany loan by Operating to Intermediate
with a portion of the proceeds of the loans under the Black Canyon Credit
Agreement, (f) the redemption by Intermediate of a portion of the 16.0% Senior
Discount Contingent Principal Notes with the proceeds of the intercompany loan
by Operating to Intermediate, and (g) certain related amendments to the Loan
Agreement; and

 

WHEREAS, Agent and Required Lenders are
willing to provide such consents and to make such amendments to the extent and
subject to terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the
mutual conditions and agreements and covenants set forth herein, and for other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

 

Section 1.               Definitions.

 

1.1           Additional
Definitions.  As used herein, the
following terms shall have the respective meanings given to them below and the
Loan Agreement shall be deemed and is hereby amended to include, in addition
and not in limitation of, each of the following definitions:

 

(a)   “Amendment
No. 3” shall mean this Amendment No. 3 to Loan and Security Agreement by and
among Agent, Lenders, Borrowers and Guarantors, as the same now exists and may
hereafter be further amended, modified, supplemented, extended, renewed,
restated or replaced.

 

(b)   “Black
Canyon Credit Agreement” shall mean the Credit Agreement, dated the Effective
Date, between Operating, as borrower, the Black Canyon Guarantors, the lenders
named therein and U.S. Bank National Association, as administrative agent, as
the same now exists or may hereafter be amended, modified, supplemented,
extended, renewed, restated or replaced.

 

2

 

(c)   “Black
Canyon Documents” shall mean, collectively the following (as the same may now
or hereafter exist or may hereafter be amended, modified, supplemented,
extended, renewed, restated or replaced): 
(i) the Black Canyon Credit Agreement (including any loan notes and loan
guarantees issued thereunder), (ii) the Black Canyon Indenture (including any
notes and guarantees issued thereunder), (iii) the Black Canyon Security
Agreement, (iv) the Black Canyon Intercreditor Agreement, and (v) all other
agreements, documents and instruments now or at any time hereafter executed
and/or delivered by Operating or any other person in connection therewith.

 

(d)   “Black
Canyon Guarantors” shall mean, collectively, Factory, JCI, J. Crew, Retail and
any Subsidiary of Operating or its Subsidiaries formed after the Effective
Date, or Intermediate on or after the date of the execution and delivery of the
Black Canyon Indenture, that guarantees the Indebtedness under the Black Canyon
Credit Agreement or the Black Canyon Indenture, to the extent required to do so
under the terms thereof, pursuant to the form of loan guarantee attached
as Exhibit B to the Black Canyon Credit Agreement (or the equivalent
form attached to the Black Canyon Indenture), and their respective successors
and assigns, sometimes being referred to individually as a “Black Canyon
Guarantor”.

 

(e)   “Black
Canyon Indenture” shall mean the Indenture to be entered into among
Operating, as issuer, the Black Canyon Guarantors and Noteholder Collateral
Agent in its capacity as trustee thereunder, upon the occurrence of certain
events as set forth in the Black Canyon Credit Agreement, in the form included
as an exhibit to the Black Canyon Credit Agreement as of the Effective Date
(except as such form may be amended or modified to the extent permitted
hereunder).

 

(f)    “Black
Canyon Intercreditor Agreement” shall mean the Intercreditor Agreement, dated
the Effective Date, by and among Agent, Noteholder Collateral Agent, Operating,
and the Black Canyon Guarantors, as the same now exists or may hereafter be
amended, modified, supplemented, extended, renewed, restated or replaced.

 

(g)   “Black
Canyon Security Agreement” shall mean the Security Agreement, dated the Effective
Date, by Operating and the Black Canyon Guarantors in favor of Noteholder
Collateral Agent, as the same now exists or may hereafter be amended, modified,
supplemented, extended, renewed, restated or replaced.

 

(h)   “Closing
Date” shall mean the date of the initial funding of the loans under the Black
Canyon Credit Agreement.

 

(i)    “Effective
Date” shall mean the date of the execution of the Black Canyon Credit
Agreement.

 

(j)    “Noteholder
Collateral Agent” shall mean U.S. Bank, National Association, and any successor
or replacement agent or any sub-agent under the Black Canyon Documents.  

 

(k)   “16%
Senior Discount Note Indenture” shall mean the Indenture, dated May 6, 2003,
between Intermediate, as issuer and 16% Senior Discount Note Trustee, with
respect to the 16% Senior Discount Notes, as the same now exists or may
hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced.

 

3

 

(l)    “16%
Senior Discount Notes” shall mean, collectively, the 16.0% Senior Discount Contingent
Principal Notes due 2008 issued by Intermediate under the 16% Senior Discount
Note Indenture, as the same now exist or may hereafter be amended, modified,
supplemented, extended, renewed, restated or replaced.

 

(m)  “16%
Senior Discount Note Trustee” shall mean U.S. Bank, National Association, and
its successors and assigns, and any replacement trustee permitted pursuant to
the terms and conditions of the 16% Senior Discount Note Indenture.

 

(n)   “10
3/8% Subordinated Notes” shall mean, collectively, the 10 3/8% Senior
Subordinated Notes due 2007 issued by Operating under the 10 3/8% Subordinated
Note Indenture, as the same now exists or may hereafter be amended, modified,
supplemented, extended, renewed, restated or replaced.

 

(o)   “10
3/8% Subordinated Note Indenture” shall mean the Indenture, dated as of October
17, 1997, by and among Operating, as issuer, Borrowers, and certain Affiliates
of Borrowers, as guarantors, and State Street Bank and Trust Company, as
trustee, with respect to the 10 3/8% Subordinated Notes, as the same now exists
or may hereafter be amended, modified, supplemented, extended, renewed,
restated, or replaced.

 

1.2           Amendment
to Definitions.  All references to
the term “Financing Agreements” in the Loan Agreement and the other Financing
Agreements shall be deemed and each such reference is hereby amended to
include, in addition and not in limitation, this Amendment No. 3, and all other
agreements documents and instruments at any time executed and/or delivered by
any Obligor or any other person in connection with this Amendment No. 3.

 

1.3           Interpretation.
For purposes of this Amendment No. 3, all terms used herein, including those
terms used or defined in the recitals hereto, shall have the respective
meanings assigned thereto in the Loan Agreement.

 

Section 2.               Consent. 
Notwithstanding anything to the contrary set forth in the Loan Agreement
or any of the other Financing Agreements and subject to the terms and
conditions contained herein, Agent and Required Lenders hereby consent to:

 

2.1           the
Indebtedness of Operating evidenced by and arising under the Black Canyon
Documents;

 

2.2           the
contingent Indebtedness of the Black Canyon Guarantors arising under the Black
Canyon Documents;

 

2.3           the
security interests in and liens upon the Collateral of Operating and the Black
Canyon Guarantors granted to the Noteholder Collateral Agent pursuant to the
Black Canyon Security Agreement  to
secure the Indebtedness evidenced by and arising under the Black Canyon
Documents and the remaining portion of the 16% Senior Discount Notes on an
equal and ratable basis;

 

2.4           the
redemption by Operating on or about the Closing Date of all of the Indebtedness
of Operating arising under the 10 3/8% Senior Subordinated Notes with the
proceeds of the loans

 

4

 

under the Black Canyon Credit
Agreement;

 

2.5           an
intercompany loan by Operating to Intermediate on or about the Closing Date in
the amount not exceeding $125,000,000 with a portion of the proceeds of the
loans under the Black Canyon Credit Agreement all of which amount shall be used
contemporaneously by Intermediate solely to redeem a portion of the
Indebtedness arising under the 16% Senior Discount Notes; and

 

2.6           the
redemption by Intermediate on or about the Closing Date  of a portion of the 16% Senior Discount Notes with all of the
proceeds of the intercompany loan by Operating to Intermediate with the
proceeds of the loans under the Black Canyon Credit Agreement.

 

Section 3.               Encumbrances. 
Section 9.8 of the Loan Agreement is hereby amended by adding the
following new subsection (n) at the end thereof:

 

“(n) the security interests and liens of the Noteholder Collateral
Agent in the Collateral pursuant to the Black Canyon Security Agreement to
secure (i) the Indebtedness of Operating and the Black Canyon Guarantors under
the Black Canyon Documents to the extent such Indebtedness is permitted under
Section 9.9(r) hereof and (ii) the Indebtedness of Intermediate  evidenced by the remaining portion of the 16%
Senior Discount Notes on an equal and ratable basis to the extent such
Indebtedness is permitted under Section 9.9(q) hereof, which security interests
and liens of the Noteholder Collateral Agent are and shall at all times be
junior and subordinate to the security interests and liens of Agent pursuant to
the Black Canyon Intercreditor Agreement.”

 

Section 4.               Indebtedness.

 

4.1           Section
9.9(j)(i) of the Loan Agreement is hereby amended by deleting the reference to
the figure “$142,000,000” contained therein and substituting the following
therefor: “$25,000,000”.

 

4.2           As
of the Closing Date, Section 9.9(k) of the Loan Agreement will be automatically
and without further action by the parties hereto deleted in its entirety and
the following substituted therefor:  “intentionally
omitted”.

 

4.3           Section
9.9(o) of the Loan Agreement is hereby amended by deleting all of the words
prior to the words “provided, that” at the beginning of such
Section and substituting the following therefor:

 

“(o)  Indebtedness of Parent,
Operating or Intermediate, as the case may be, arising after the date hereof
issued in exchange for, or the proceeds of which are used to extend, refinance,
replace or substitute for Indebtedness permitted under Sections 9.9(j), 9.9(q)
or 9.9(r) hereof (the “Refinancing Indebtedness”);”

 

4.4           As
of the Closing Date, Section 9.9(q)(i) of the Loan Agreement will be
automatically and without further action by the parties hereto amended to
delete the reference to the figure “154,500,000” contained therein and substitute
the following therefor:  “$75,000,000”.

 

5

 

4.5           Section
9.9 of the Loan Agreement is hereby amended by adding a new Section 9.9(r) at
the end thereof as follows:

 

“(r)  Indebtedness of Operating
arising on the Closing Date under the Black Canyon Credit Agreement (or under
the Black Canyon Indenture upon its execution and delivery after the Closing
Date), provided, that:

 

(i)  the aggregate amount of such
Indebtedness shall not exceed $275,000,000, less the aggregate amount of all
repayments or redemptions, whether optional or mandatory, in respect thereof,
plus interest thereon at the rate provided for in the Black Canyon Credit
Agreement (or provided for in the Black Canyon Indenture upon its execution and
delivery after the Closing Date),

 

(ii)  the Credit Facility is and
shall at all times continue to be the “Congress Credit Facility” as such term
is defined in the Black Canyon Documents 
and the Obligations are and shall at all times constitute “Senior Debt”
and “Designated Senior Debt” as each of such terms is defined in the Black
Canyon Documents and is and shall be entitled to all of the rights and benefits
thereof, if any, under the Black Canyon Documents,

 

(iii) Borrowers and Guarantors shall not, directly or indirectly, make
any payments in respect of such Indebtedness, except  that they
may make regularly scheduled payments of interest and fees, if any, in respect
of such Indebtedness when due in accordance with the terms of the Black Canyon
Credit Agreement (or in accordance with the terms of the Black Canyon Indenture
upon its execution and delivery after the Closing Date), and any reasonable and
customary fees required to be paid to lenders or holders of the Indebtedness of
Operating under the Black Canyon Documents,

 

(iv)  Borrowers and Guarantors
shall not, directly or indirectly, amend, modify, alter or change, in each
case, in any material respect any terms of such Indebtedness or any of the
Black Canyon Documents or any related agreements, documents and instruments, except
that Borrowers and Guarantors may, after prior written notice to Agent,
amend, modify, alter or change the terms thereof so as to extend the maturity
thereof or defer the timing of any payments in respect thereof, or to forgive
or cancel any portion of such Indebtedness other than pursuant to payments
thereof, or to reduce the interest rate or any fees in connection therewith, or
to eliminate any covenants contained therein, or make any such covenants less
restrictive or otherwise more favorable to any Borrower or Guarantor or to
execute and deliver a loan guarantee in the form attached as Exhibit B to the
Black Canyon Credit Agreement (or the equivalent form attached to the Black
Canyon Indenture), and

 

(v)  Borrowers and Guarantors
shall not, directly or indirectly, redeem, retire, defease, purchase or
otherwise acquire all or any part of such Indebtedness other than at maturity
(as set forth in the Black Canyon Credit Agreement or the Black Canyon
Indenture upon its execution and delivery after the Closing Date), or set aside
or otherwise deposit or invest any sums for such

 

6

 

purpose, except
that

 

(A)  Borrowers or Guarantors may
redeem, retire, defease, purchase or otherwise acquire all or any part of such
Indebtedness with Refinancing Indebtedness with respect thereto to the extent
permitted under Section 9.9(o) hereof,

 

(B)  Borrowers or Guarantors may
redeem, retire, defease, purchase or otherwise acquire all or any portion of
such Indebtedness with the net proceeds of the issuance and sale of Capital
Stock of Parent or Operating permitted hereunder received by such Borrower or
Guarantor in cash or other immediately available funds; provided, that,
as of the date of any such redemption or purchase or any payment in respect
thereof and after giving effect thereto, (1) Borrowers and Guarantors shall
have complied with all of the requirements of Sections 9.7(b)(iii)(A), (B), (C)
and (E) with respect to such issuance and sale of Capital Stock and in addition
to such requirements, the notice provided to Agent pursuant thereto shall
specify that the proceeds are to be used for the redemption, retirement,
defeasance, purchase or acquisition of all or any part all of such Indebtedness
(and shall specify which of the foregoing is intended), the maximum amount that
Borrowers and Guarantors will pay in respect thereof and the range of the
principal amount of such Indebtedness that Borrowers and Guarantors anticipate
will be so redeemed, retired, defeased, purchased or otherwise acquired, (2)
the redemption, retirement, defeasance, repurchase or acquisition of all or any
part of such Indebtedness shall be substantially contemporaneous with the
issuance and sale of the Capital Stock of Parent or Operating subject to such
notice provided to Agent, (3) as of the date of any such payment and after
giving effect thereto, there shall be Excess Availability, and (4)  as of the date of any such payment and after giving
effect thereto, no Default or Event of Default shall exist or have occurred and
be continuing, and

 

(C)  Borrowers or Guarantors may
redeem or repurchase such Indebtedness in cash or other immediately available
funds (other than with proceeds of the issuance and sale of Capital Stock of Parent
or Operating as provided in clause (B) above); provided, that,
(1) Borrower Agent shall have provided to Agent not less than ten (10) Business
Days’ notice of the intention of such Borrower or Guarantor to redeem or
purchase such Indebtedness (specifying the amount to be paid by Borrowers or
Guarantors and the principal amount of such Indebtedness that Borrowers and
Guarantors anticipate will be so redeemed or repurchased), (2) for each of the
immediately preceding thirty (30) consecutive days, Excess Availability shall
have been not less than $20,000,000 and as of the date of any such payment and
after giving effect thereto, Excess Availability shall be not less than
$20,000,000 and (3) as of the date of such payment and after giving effect
thereto, no Default or Event of Default shall exist or have occurred and be
continuing.”

 

4.6           Section
9.9 of the Loan Agreement is hereby amended by adding a new Section 9.9(s) at
the end thereof as follows:

 

7

 

“(s) contingent Indebtedness arising pursuant to the guarantees
existing on the Effective Date by the Black Canyon Guarantors (or thereafter
pursuant to any person that becomes a Black Canyon Guarantor after the
Effective Date in accordance with the terms of the Black Canyon Documents) of
the Indebtedness of Operating arising under the Black Canyon Documents to the
extent such Indebtedness of Operating is permitted hereunder, set forth in the
Black Canyon Credit Agreement, or on substantially the same terms, in the Black
Canyon Indenture upon the execution and delivery thereof.”

 

Section 5.               Loans, Investments, Etc.  Section 9.10 of the Loan Agreement is hereby
amended by adding a new Section 9.10(k) at the end thereof as follows:

 

“(k)  an intercompany loan by Operating
to Intermediate on or about the Closing Date with a portion of the proceeds of
the loans received by Operating under the Black Canyon Credit Agreement, the
proceeds of which shall be used on or about the Closing Date by Intermediate
solely to prepay a portion of the 16% Senior Discount Notes, provided, that,
the Indebtedness arising pursuant to such loan shall not be evidenced by a
promissory note or other instrument, unless the single original of such note or
other instrument is promptly delivered to Agent upon its request to hold as
part of the Collateral, with such endorsement and/or assignment by the payee of
such note or other instrument as Agent may require.”

 

Section 6.               Representations, Warranties and Covenants.  In addition to the continuing representations,
warranties and covenants heretofore or hereafter made by Borrowers and
Guarantors to Agent and Lenders pursuant to the other Financing Agreements,
each of Borrowers and Guarantors, jointly and severally, hereby represents,
warrants and covenants with and to Agent and Lenders as follows (which
representations, warranties and covenants are continuing and shall survive the
execution and delivery hereof and shall be incorporated into and made a part of
the Financing Agreements):

 

6.1           This
Amendment No. 3 has been duly executed and delivered by all necessary action on
the part of Borrowers and Guarantors and, if necessary, their respective
stockholders, and is in full force and effect as of the Effective Date and the
agreements and obligations of Borrowers and Guarantors contained herein
constitute legal, valid and binding obligations of Borrowers and Guarantors
enforceable against Borrowers and Guarantors in accordance with their
respective terms.

 

6.2           No
Default or Event of Default exists or has occurred and is continuing.

 

6.3           No
action of, or filing with, or consent of any governmental authority, and no
approval or consent of any other party, is required to authorize, or is
otherwise required in connection with, the execution, delivery and performance
of this Amendment No. 3, other than a filing of a current report on Form 8-K
with the Securities and Exchange Commission in connection therewith.

 

6.4           All
of the representations and warranties set forth in the Loan Agreement and the
other Financing Agreements, each as amended hereby, are true and correct on and
as of the date hereof.

 

8

 

6.5           Neither
the execution or delivery of any of the other Black Canyon Documents, nor the
consummation of the transactions contemplated by the Black Canyon Documents,
nor compliance with the provisions thereof, shall result in the creation nor
imposition of any lien, charge or encumbrance upon any of the Collateral as
amended hereby, other than in favor of Noteholder Collateral Agent or Agent as
specifically permitted herein.

 

6.6           On
or prior to the Closing Date, the Black Canyon Credit Agreement shall have been
duly authorized, issued and delivered by Operating, and the transactions
contemplated thereunder shall have been performed in accordance with their
terms by the respective parties thereto in all respects to the extent to be
performed thereunder on or before the Closing Date, including the fulfillment
(or the waiver) of all conditions precedent set forth therein.

 

6.7           On
or prior to the Closing Date, all actions and proceedings required by the Black
Canyon Documents, applicable law or regulations, including, without limitation,
all Securities Laws, shall have been taken, and the transactions required
thereunder shall have been (or will be when required to under the Black Canyon
Documents or applicable law) duly and validly taken and consummated.

 

6.8           Neither
the execution and delivery of any of the Black Canyon Documents nor the
consummation of the transactions therein contemplated, nor compliance with the
provisions thereof (a) has violated or will violate any of the Securities Laws
or any other law or regulation or any order or decree of any court or
governmental instrumentality in any respect, or (b) after giving effect to the
consents hereunder, does or shall conflict with or result in the breach of, or
constitute a default in any respect under, any indenture, mortgage, deed of
trust, security agreement, agreement or instrument to which any Borrower or
Guarantor is a party or by which it or any of its assets may be bound, or (c)
violate any provision of the Certificate of Incorporation, By-Laws, Articles of
Formation or Operating Agreement of any Borrower or Guarantor.

 

6.9           Borrowers shall provide written notice to Agent
of the Closing Date on such date.

 

6.10         On the Effective Date, Agent has received true,
correct and complete copies of all of the Black Canyon Documents executed as of
or prior to such date, and thereafter shall receive true, correct and complete
copies of all other Black Canyon Documents promptly upon the execution thereof
(but in any event one (1) Business Day thereafter).

 

6.11         The Closing Date shall occur on or about
January 15, 2005 and Borrowers and Guarantors shall have received the proceeds
of the initial loans under the Black Canyon Credit Agreement on or about such
date.

 

Section 7.               Conditions. 
The effectiveness of the consents, terms and conditions contained herein
shall be subject to the satisfaction of each of the following conditions, in form
and substance satisfactory to Agent:

 

7.1           Agent
shall have received a true, complete and correct copy of the Black Canyon
Intercreditor Agreement, in form and substance satisfactory to Agent, as duly
authorized, executed and delivered by the parties thereto;

 

9

 

7.2           Agent
shall have received true, correct and complete copies of all of the Black
Canyon Documents executed and delivered on the Effective Date, which shall be
in form and substance reasonably satisfactory to Agent;

 

7.3           Agent
shall have received evidence that all corporate and limited liability company
proceedings with respect to the incurrence of the Indebtedness under the Black
Canyon Documents have been taken by Borrowers, Guarantors and their Affiliates,
as appropriate;

 

7.4           Agent
shall have received, in form and substance satisfactory to Agent, from
Operating, Directors’ Certificate of Shareholders and Shareholders’
Resolutions, Incumbency and Shareholder Consent evidencing the adoption and subsistence
of the corporate resolutions approving the execution, delivery and performance
by Operating of this Amendment No. 3 and the agreements, documents and
instruments to be delivered pursuant to this Amendment including the
transactions contemplated by the Black Canyon Documents;

 

7.5           Agent
shall have received an original of this Amendment No. 3, duly authorized,
executed and delivered by Borrowers and Guarantors;

 

7.6           Agent
shall have received all consents of Lenders required for the amendments provided
for herein;

 

7.7           the
Effective Date and each of the conditions set forth above shall have occurred
by no later than December 7, 2004.

 

Section 8.               Miscellaneous.

 

8.1           Effect
of this Amendment. Except as modified pursuant hereto, no other changes or
modifications to the Financing Agreements are intended or implied, and in all
other respects, the Financing Agreements are hereby specifically ratified,
restated and confirmed by all parties hereto as of the Effective Date.  The Loan Agreement and this Amendment No. 3
shall be read and construed as one agreement. To the extent of conflict between
the terms of this Amendment and the other Financing Agreements, the terms of
this Amendment No. 3 shall control.

 

8.2           Further
Assurances. The parties hereto shall execute and deliver such additional
documents and take such additional actions as may be necessary to effectuate
the provisions and purposes of this Amendment No. 3.

 

8.3           Governing
Law. The rights and obligations hereunder of each of the parties hereto
shall be governed by and interpreted and determined in accordance with the laws
of the State of New York without regard to principals of conflicts of law or
other rule of law that would result in the application of the law of any
jurisdiction other than the laws of the State of New York.

 

8.4           Binding
Effect. This Amendment No. 3 shall be binding upon and inure to the benefit
of each of the parties hereto and their respective successors and assigns.

 

8.5           Counterparts.
This Amendment No. 3 may be executed in any number of counterparts, but all of
such counterparts shall together constitute but one and the same
agreement.  In making proof of this
Amendment, it shall not be necessary to produce or account

 

10

 

for more than one counterpart
thereof signed by each of the parties hereto. 
Delivery of an executed counterpart of this Amendment No. 3 by
telefacsimile shall have the same force and effect as delivery of an original
executed counterpart of this Amendment No. 3. 
Any party delivering an executed counterpart of this Amendment No. 3 by
telefacsimile also shall deliver an original executed counterpart of this
Amendment No. 3, but the failure to deliver an original executed counterpart
shall not affect the validity, enforceability, and binding effect of this
Amendment No. 3 as to such party or any other party.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

11

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment No. 3 to be duly executed and delivered by their
authorized officers as of the date and year first above written.

 

	
   

  	
  CONGRESS FINANCIAL CORPORATION,

  as Agent and as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason Searle

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Assistant Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Keith Vercauteren

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MERRILL LYNCH CAPITAL, a division of

  Merrill Lynch Business Financial Services Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michele Kovatchis

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE CIT GROUP/BUSINESS CREDIT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Deborah Rogut

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LASALLE RETAIL FINANCE, a division of

  Lasalle Business Credit, as agent for Standard

  Federal Bank National Association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Craig G. Nutbrown

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ORIX CREDIT CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Lenhardt

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Director, Domestic Research

  	
   

  
							

 

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

12

 

[SIGNATURES CONTINUED FROM PRIOR PAGE]

 

	
   

  	
  J. CREW OPERATING CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Amanda J. Bokman

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  J. CREW INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Amanda J. Bokman

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRACE HOLMES, INC. d/b/a J. CREW RETAIL

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Amanda J. Bokman

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  H.F.D. NO. 55, INC. d/b/a J. CREW FACTORY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Amanda J. Bokman

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  J. CREW GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Amanda J. Bokman

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  J. CREW INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nicholas P. Lamberti

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  VP Controller

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  J. CREW INTERMEDIATE LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Amanda J. Bokman

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
						

 

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]