Exhibit 99.1
WAIVER AND AMENDMENT NO. 1
This WAIVER and AMENDMENT NO. 1 (this "Waiver and Amendment"-
dated as of July 31, 1995 among The First National Bank of Boston
("FNBB"), The CIT Group/Business Credit, Inc. ("CIT"), BankAmerica
Business Credit, Inc., Congress Financial Corporation, NatWest Bank
N.A., LaSalle Business Credit, Inc. and Sanwa Business Credit
Corporation as the Banks party to the Credit Agreement hereinafter
referred to below and Rose's Stores, Inc. (the "Borrower").
W I T N E S S E T H:
WHEREAS, the Borrower is a party to the Revolving Credit
Agreement dated as of April 28, 1995 among the Borrower, the Banks,
FNBB as administrative agent (in such capacity, the "Administrative
Agent") and FNBB and CIT as facility agents (in such capacities,
the "Facility Agents") (as such agreement may be amended and
restated, amended, supplemented or modified from time to time, the
"Credit Agreement");
WHEREAS, the Borrower has advised the Administrative Agent,
the Facility Agents and the Banks that it may fail to comply with
the covenant set forth in Section 10.2 of the Credit Agreement for
the single fiscal quarter ended on July 29, 1995 or for the period
of two fiscal quarters ended on July 29, 1995;
WHEREAS, the Borrower has requested that the Majority Banks
(i) waive, subject to all of the terms, conditions, and limitations
set forth herein, the Borrower's compliance with the covenant set
forth in Section 10.2 of the Credit Agreement for the single fiscal
quarter ended on July 29, 1995 or for the period of two fiscal
quarters ended on July 29, 1995 and (ii) make certain amendments
to Section 26 of the Credit Agreement; and
WHEREAS, subject to all of the terms, conditions and
limitations set forth herein, the Majority Banks are willing to (i)
waive the Borrower's compliance with the covenant set forth in
Section 10.2 of the Credit Agreement for the single fiscal quarter
ended on July 29, 1995 or for the period of two fiscal quarters
ended on July 29, 1995, provided that EBITDA for the single fiscal
quarter ended on July 29, 1995 is not less than $50,000 and (ii)
amend Section 26 of the Credit Agreement.
NOW, THEREFORE, in consideration of the premises contained
herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree to the following:
1. Definitions. Capitalized terms defined in the preceding
preliminary paragraphs shall have such meanings provided therein
and, unless otherwise defined herein, capitalized terms which are
defined in the Credit Agreement shall have the meanings assigned
thereto in the Credit Agreement.
2. Waiver. The Majority Banks hereby waive compliance with
Section 10.2 of the Credit Agreement (i) for the single fiscal
quarter ended on July 29, 1995 and (ii) for the period of two
fiscal quarters ended on July 29, 1995; provided that EBITDA for
the single fiscal quarter ended on July 29, 1995 is not less than
$50,000. The Borrower agrees and acknowledges that any failure of
the Borrower to achieve EBITDA of $50,000 or more for the single
fiscal quarter ended on July 29, 1995 shall constitute a breach of
the covenant contained in Section 10.2 of the Credit Agreement and
that such breach shall constitute an immediate Event of Default
under the Credit Agreement.
3. Amendment to Section 26. Section 26 of the Credit
Agreement is hereby amended by replacing the phrase "the fixed
maturity date of the Notes' in the third sentence of such section
with the phrase "any fixed payment date for principal or interest".
4. Effectiveness of Waiver and Amendment. The waiver to be
made pursuant to Section 2 of this Waiver and Amendment and the
amendment to be made pursuant to Section 3 of this Waiver and
Amendment shall become effective when the Administrative Agent
shall have received counterparts of this Waiver and Amendment
signed by the Majority Banks and the Borrower.
5. Representations and Warranties; No Default. The Borrower
hereby represents and warrants to the Banks, the Facility Agent and
the Administrative Agent as follows:
(a) Each of the representations and warranties
contained in the Credit Agreement, the other Loan
Documents or any in any document or instrument delivered
pursuant to or in connection with the Credit Agreement
are true at and as of the date hereof with the same
effect as if made at and as of the date hereof (except
to the extent of changes resulting directly from the
transactions contemplated or permitted by the Credit
Agreement and the other Loan Documents and changes
occurring during the ordinary course of business that
singly or in the aggregate are not materially adverse to
the Banks or the business or financial affairs of the
Borrower, and to the extent that such representations and
warranties relate expressly to an earlier date). After
giving effect to this Waiver and Amendment, no event has
occurred and is continuing on the date hereon that
constitutes a Default or Event of Default.
(b) The execution and delivery by the Borrower of
this Waiver and Amendment and the performance by the
Borrower of its obligations hereunder in accordance with
its terms:
(i) are within the corporate powers of the
Borrower, have been duly authorized by all necessary
corporate action, and do not and will not contravene
any provision of law applicable to the Borrower;
(ii) do not require any approval, consent,
order, authorization, or license by, or giving
notice to, or taking any other action with respect
to any governmental or regulatory authority, under
any provisions of any laws or any governmental
rules, regulations, orders or decrees applicable to
and binding upon the Borrower, except such as have
been obtained, and are in full force and effect and
adequate for their purposes;
(iii) do not require any filing, recording or
enrolling of any instrument with any governmental
or regulatory authority of any political subdivision
thereof except such as have been obtained and are
in full force and effect and adequate for their
purposes;
(iv) do not contravene the terms of the
certificate of incorporation, by-laws or other
corporate governance documents;
(v) will not conflict with or result in any
breach or contravention of or the creation of any
Lien under any indenture, agreement, lease,
instrument or undertaking to which the Borrower is
a party or by which any of its properties, assets
or rights is or will become bound or affected; and
(vi) is and will be a valid and legally binding
obligation of the Borrower and is and will be
enforceable in accordance with its terms, except as
limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or affecting
generally the enforcement of creditors' rights.
(c) The execution, delivery and effectiveness of
this Waiver and Amendment shall not, except as expressly
provided herein, operate as a waiver of any right, power
or remedy of the Administrative Agent, the Facility
Agents or any Bank under the Credit Agreement or any of
the other Loan Documents. Without limiting the
generality of the fore-going, the Borrower agrees and
acknowledges that, except as expressly set forth herein,
this Waiver and Amendment shall not constitute a waiver
by the Banks, the Facility Agents or the Administrative
Agent of any condition, provision or covenant in the
Credit Agreement or any Loan Document, including, without
limitation, any condition to borrowings and shall not
in any way preclude the Banks, the Facility Agents or the
Administrative Agent from exercising all rights, powers
and remedies under and in respect of the Credit
Agreement, the Loan Documents or otherwise.
(d) The Borrower shall reimburse the Administrative
Agent and the Banks for all of their expenses, including,
without limitation, attorneys' fees and expenses,
incurred in connection with the negotiation, preparation,
execution, and administration of the provisions, of this
Waiver and Amendment and the other documents and
instruments contemplated hereby.
6. Governing Law. This Waiver and Amendment shall be deemed
to be a contract under the laws of the State of New York and shall
for all purposes be construed in accordance with and governed by
the laws of said State.
7. Miscellaneous. The captions in this Waiver and Amendment
are for convenience of reference only and shall not define or limit
the provisions hereof. This Waiver and Amendment may be executed
in separate counterparts, each of which when so executed and
delivered shall be an original, but all of which together shall
constitute one instrument.
In proving this Waiver and Amendment, it shall not be necessary to
produce or account for more than one such counterpart.
PAGE
IN WITNESS WHEREOF, the parties hereto have executed this
Waiver and Amendment as of the day and year first hereinabove set
forth.
BANKS
THE FIRST NATIONAL BANK OF BOSTON
By:Signature not shown
Title:
THE CIT GROUP/BUSINESS CREDIT, INC.
By:Signature not shown
Title:
BANKAMERICA BUSINESS CREDIT, INC.
By:Signature not shown
Title:
CONGRESS FINANCIAL CORPORATION
(NEW ENGLAND)
By:Signature not shown
Title:
NATWEST BANK N.A.
By:Signature not shown
Title:
LASALLE BUSINESS CREDIT, INC.
By:Signature not shown
Title:
SANWA BUSINESS CREDIT CORPORATION
By:Signature not shown
Title:
BORROWER
ROSE'S STORES, INC.
By:Signature not shown
Title:
