SEC Contract Filing

Filing Date: 2021-10-22

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<TYPE>EX-10.1
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<DESCRIPTION>EX-10.1
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<DIV><FONT size="1" style="font-size:1pt;color:white"> Exhibit 10.1 LIMITED WAIVER AND AMENDMENT This LIMITED WAIVER AND AMENDMENT (this &#8220;Limited Waiver&#8221;) is entered into as of October 18, 2021, by and among Casper Sleep Inc., a Delaware corporation (the &#8220;Lead Borrower&#8221;), each of the other Loan Parties signatory hereto, the lenders party hereto and WELLS FARGO BANK, NATIONAL ASSOCIATION as agent (the &#8220;Agent&#8221;). WHEREAS, reference is made to that certain Credit Agreement, by and among, among others, the Agent and the Lead Borrower, dated November 10, 2020 (as amended, restated, supplemented or otherwise modified from time to time, the &#8220;Credit Agreement&#8221;); and WHEREAS, the Lead Borrower has requested the ability, solely between the date hereof and December 31, 2021 (the &#8220;Relevant Period&#8221;), to maintain less than $32,000,000 of Deposited Cash without implicating, constituting or otherwise giving rise to an Accelerated Borrowing Base Delivery Event or a Cash Dominion Event (the &#8220;Limited Waiver&#8221;); NOW THEREFORE, in consideration of the mutual promises and agreements herein contained, the parties hereto agree as follows: 1. GENERAL. Defined terms used but not otherwise defined herein shall have the same meanings as in the Credit Agreement. 2. Limited Waiver and Amendments. In accordance with, and in reliance on, the Loan Parties&#8217; representations and warranties contained herein, and subject to the satisfaction of the conditions precedent specified in Section 4 below, the Agent and the Lenders hereby consent to the Limited Waiver, subject to the following agreements by the Loan Parties: (a) Section 6.10(b) of the Credit Agreement is hereby amended to delete &#8220;two (2) commercial finance examinations&#8221; where it appears therein, and replace same with &#8220;three (3) commercial finance examinations&#8221;; (b) Section 6.10(c) of the Credit Agreement is hereby amended to delete &#8220;two (2) inventory appraisals&#8221; where it appears therein, and replace same with &#8220;three (3) inventory appraisals&#8221;; (c) notwithstanding the provisions of Section 6.01(d) of the Credit Agreement, on or before November 30, 2021, the Loan Parties shall deliver to the Agent the final forecasts prepared by management of the Lead Borrower, in form satisfactory to the Agent, of consolidated balance sheets and statements of income or operations and cash flows of the Lead Borrower and its Subsidiaries on a monthly basis for the 2022 Fiscal Year; (d) during the Relevant Period, the Loan Parties shall participate in bi-weekly update calls with the Agent, as requested by the Agent; (e) from and after November 5, 2021 during the Relevant Period, on Tuesday of each week, the Loan Parties shall deliver to the Agent an updated Approved Budget (as defined below) with respect to the immediately following thirteen (13) weeks; and (f) from and after the date hereof, the Loan Parties shall provide the Agent with at least five (5) Business Days&#8217; prior written notice before reducing the amount of Deposited Cash below $15,000,000. </FONT></DIV>
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<DIV><FONT size="1" style="font-size:1pt;color:white">This Limited Waiver shall be effective only in this specific instance and for the specific purpose for which it is given, and shall not entitle the Loan Parties to any other or further consent in any similar or other circumstances. As used herein, an &#8220;Approved Budget&#8221;: means a thirteen (13) week budget prepared by the Lead Borrower and furnished to the Agent on or before the date hereof, as the same shall be updated, modified and/or supplemented thereafter from time to time as required herein which budget shall include a weekly cash budget, including information on a cumulative basis by category as to (w) projected cash receipts, (x) projected disbursements (including ordinary course operating expenses, capital expenditures, asset sales and fees and expenses of the Agent and the Lenders (including counsel therefor) and any other fees and expenses relating to the Loan Documents), (y) projected inventory levels, and (z) a calculation of the Borrowing Base, which shall be in form and substance acceptable to the Agent. 3. LOAN PARTY REPRESENTATIONS. Each Loan Party represents and warrants to the Agent and the Lenders that the representations and warranties of the Loan Parties set forth in the Credit Agreement and in each other Loan Document to which the Loan Parties are parties are true and correct in all material respects on the date hereof, as if made on and as of the date hereof (except (A) to the extent that such representations and warranties expressly relate to an earlier date, in which case such representations and warranties are true and correct in all material respects as of such earlier date, and (B) in the case of any representation and warranty qualified by materiality, in which case such representations and warranties shall be true and correct in all respects). 4. CONDITIONS PRECEDENT. This Limited Waiver shall become effective, as of the date hereof, upon satisfaction of the following conditions precedent: (a) this Limited Waiver shall have been duly executed and delivered by each of the Loan Parties, the Agent, and the Lenders, and (b) no Default or Event of Default shall have occurred and be continuing, nor shall any Default or Event of Default result fr