Exhibit 10.18
November 9, 2001
Spiegel, Inc.
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇. ▇▇▇▇▇▇
Re: Waiver
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Ladies and Gentlemen:
Please refer to the Second Amended and Restated Revolving Credit
Agreement, dated as of June 30, 2000, as amended (the "Second Amended Credit
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Agreement"), and the 364-Day Revolving Credit Agreement, dated as of June 30,
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2000, as amended (the "364-Day Credit Agreement" and together with the Second
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Amended Credit Agreement, individually a "Credit Agreement" and, collectively,
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the "Credit Agreements"), each among Spiegel, Inc. (the "Borrower"), various
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financial institutions as the Lenders, the Arrangers, the Syndication Agent and
Deutsche Bank AG, New York Branch, as the Administrative Agent. Capitalized
terms used but not otherwise defined herein have the respective meanings
assigned thereto in the Credit Agreements.
At the Borrower's request, the Required Lenders under each Credit
Agreement hereby waive: (a) any failure by the Borrower to comply with Section
7.2.6(c) of the Credit Agreements (minimum Fixed Charge Coverage Ratio) for the
Fiscal Quarters ended December 29, 2001 and March 30, 2002 and (b) any failure
by the Borrower to comply with Section 7.2.6(d) of the Credit Agreements
(maximum Debt to EBITDAR Ratio) as of the last day of the 2001 Fiscal Year;
provided, that such waivers shall be in effect from the date hereof through June
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15, 2002 (such period being the "Waiver Period"). Upon the expiration of the
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Waiver Period, unless extended, if the Borrower were not in compliance with each
of the foregoing covenants as of the end of each of the foregoing covenant
periods, it shall constitute an Event of Default.
In consideration of the foregoing waivers during the Waiver Period, the
Borrower agrees with the Agent and the Required Lenders that:
(a) The Borrower shall not be permitted to declare or make any
Restricted Payment until it is once again in compliance with all the
financial covenants of Section 7.2.6 (including Section 7.2.6(c) and
without regard to any waiver thereof provided for in this Waiver
Letter) on and after March 31, 2002 and it is otherwise in compliance
with Section 7.2.8 of the Credit Agreements.
(b) ▇▇▇▇ Versand (GmbH & Co) shall provide up to a
$100,000,000 loan (the "Loan") to the Borrower (as more fully described
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in the letter agreement dated of even
Spiegel, Inc.
November 9, 2001
Page 2
date herewith); the Borrower agrees that any interest on the Loan may
accrue, but shall not be paid, during the Waiver Period.
(c) The Borrower agrees to pay to the Administrative Agent for
the account of each consenting Lender a waiver fee equal to 0.25% of
the amount of such Lender's Commitment under each Credit Agreement
concurrently with the effectiveness hereof.
(d) The Borrower will not, and will not permit any Subsidiary
to, make any Permitted Acquisition without the prior written consent of
the Required Lenders under each Credit Agreement.
This Waiver Letter is limited to the matters specifically set forth
herein and shall not be deemed to constitute a waiver or consent with respect to
any other matter whatsoever. The Administrative Agent and the Lenders hereby
reserve all of their rights, powers and remedies under the Credit Agreements and
applicable law.
This Waiver Letter may be executed in counterparts and by the parties
hereto on separate counterparts. This Waiver Letter shall become effective upon
receipt by the Administrative Agent of (i) counterparts hereof (or facsimiles
thereof) executed by the Borrower, the Subsidiaries listed below and the
Required Lenders, (ii) the amendment fee referred to in clause (c) above and
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(iii) a letter agreement executed by ▇▇▇▇ Versand (GmbH & Co) and the
Administrative Agent evidencing the obligations referred to in clause (b) above.
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The Borrower agrees to pay on demand all reasonable expenses of the
Arrangers and the Administrative Agent (including the fees and reasonable
out-of-pocket expenses of counsel to the Arrangers and the Administrative
Agent), in connection with the negotiation, preparation, execution and delivery
of this Waiver Letter and of each other Loan Document executed in connection
with this Waiver Letter as may from time to time hereafter be required, whether
or not the transactions contemplated hereby are consummated.
This Waiver Letter shall be governed by the laws of the State of
Illinois applicable to contracts made and to be performed entirely within such
State.
Spiegel, Inc.
November 9, 2001
Page 3
Please acknowledge your agreement to the foregoing by signing and returning
a counterpart hereof to the Administrative Agent.
DEUTSCHE BANK AG, NEW YORK BRANCH,
Individually and as Administrative Agent
By:/s/ ▇▇▇▇-▇▇▇▇▇ ▇▇▇▇▇▇
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Name: ▇▇▇▇-▇▇▇▇▇ ▇▇▇▇▇▇
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Title: Director
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By: /s/ ▇▇▇▇▇▇▇ ▇. Peetzen
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Name:▇▇▇▇▇▇▇ ▇. Peetzen
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Title: Director
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ABN AMRO BANK N.V., as a Lender
By:/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
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Title: Group Vice President
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By:/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Title: Vice President
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BANCA COMMERCIALE ITALIANA, NEW
YORK BRANCH, as a Lender
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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Title: Vice President
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By: /s/ ▇. ▇▇▇▇▇▇▇▇▇
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Name: ▇. ▇▇▇▇▇▇▇▇▇
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Title: Vice President
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Spiegel, Inc.
November 9, 2001
Page 4
BANK OF AMERICA, N.A., as a Lender
By:/s/▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Title:Managing Director
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Spiegel, Inc.
November 9, 2001
Page 5
THE BANK OF NEW YORK, as a Lender
By:/s/ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇
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Name: ▇▇▇▇▇▇▇▇▇ ▇▇▇▇ Fuiks
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Title: Vice President
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BAYERISCHE HYPO UND VEREINSBANK AG,
as a Lender
By:/s/ A. von der ▇▇▇▇
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Name: A. von der ▇▇▇▇
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Title: Senior Vice President
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By:/s/ A. Neuheuser
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Name: A. Neuheuser
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Title: Vice President
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BANKGESELLSCHAFT BERLIN AG, as a
Lender
By: ______________________________________
Name: ____________________________________
Title: ___________________________________
COMMERZBANK AG, NEW YORK AND
GRAND CAYMAN BRANCHES, as a Lender
By:/s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇
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Title: Assistant Treasurer
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By:/s/ ▇▇▇▇ ▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇▇▇▇▇▇
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Title: Vice President
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Spiegel, Inc.
November 9, 2001
Page 6
CREDIT LYONNAIS NEW YORK BRANCH, as
a Lender
By: /s/ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
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Title: Vice President
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CREDIT SUISSE FIRST BOSTON, as a Lender
By: /s/ ▇▇▇▇ ▇' ▇▇▇▇
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Name: ▇▇▇▇ ▇'▇▇▇▇
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Title: Vice President
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By: /s/ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
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Title: Associate
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DEUTSCHE BANK AG NEW YORK AND/OR
CAYMAN ISLAND BRANCHES, as a Lender
By: /s/ ▇▇▇▇-▇▇▇▇▇ ▇▇▇▇▇▇
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Name: ▇▇▇▇-▇▇▇▇▇ ▇▇▇▇▇▇
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Title: Director
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By: /s/ ▇▇▇▇▇▇▇ ▇. Peetzen
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Name: ▇▇▇▇▇▇▇ ▇. Peetzen
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Title: Director
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DEN DANSKE BANK, as a Lender
By: /s/ ▇▇ ▇▇▇▇▇▇▇▇ /s/ ▇▇▇▇ ▇▇▇▇▇▇
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Name: ▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
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Title: Vice President Vice President
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Spiegel, Inc.
November 9, 2001
Page 7
DG BANK DEUTSCHE
GENOSSENSCHAFTSBANK AG, as a Lender
By: /s/ Jochen Breitgens
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Name: Jochen Breitgens
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Title: Vice President
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By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇
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Title: Vice President
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DRESDNER BANK AG, NEW YORK AND
GRAND CAYMAN BRANCHES, as a Lender
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇▇▇▇▇▇▇▇
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Title: Director
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By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇
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Title: Vice President
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THE HONGKONG AND SHANGHAI BANKING
CORPORATION LIMITED, as Issuer
By: /s/ ▇▇▇▇▇▇ ▇. Bollington
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Name: ▇▇▇▇▇▇ ▇. Bollington
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Title: Senior Vice President
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Spiegel, Inc.
November 9, 2001
Page 8
HSBC BANK USA, as a Lender
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇▇▇▇▇▇▇▇
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Title: Senior Vice President
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LANDESBANK HESSEN-THURINGEN, as a
Lender
By: /s/ ▇▇▇▇ ▇▇▇▇▇ /s/ ▇▇▇▇▇ ▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
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Title: Vice President Senior Vice President
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▇▇▇▇▇▇ GUARANTY TRUST COMPANY OF NEW YORK, as a
Lender
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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Title: Vice President
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NORDDEUTSCHE LANDESBANK GIROZENTRALE NEW YORK BRANCH
AND/OR CAYMAN ISLAND BRANCH, as a Lender
By: /s/ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Title: Vice President Senior Vice President
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Spiegel, Inc.
November 9, 2001
Page 9
WESTDEUTSCHE LANDESBANK
GIROZENTRALE, NEW YORK BRANCH, as a
Lender
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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Title: Director Manager
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ACCEPTED AND AGREED
as of November 9, 2001
SPIEGEL, INC.
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇
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Title: Vice President, Treasurer
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▇▇▇▇▇ ▇▇▇▇▇, INC.
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Treasurer
ULTIMATE OUTLET INC.
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Treasurer
NEWPORT NEWS, INC.
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Treasurer
Spiegel, Inc.
November 9, 2001
Page 10
DISTRIBUTION FULFILLMENT SERVICES, INC. (DFS)
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Treasurer
SPIEGEL PUBLISHING COMPANY
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Treasurer
SPIEGEL CATALOG, INC.
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Treasurer