FIFTH SUPPLEMENTAL INDENTURE

Contract Categories: Business Finance - Indenture Agreements
EX-4.1 2 a16-2514_1ex4d1.htm EX-4.1

EXHIBIT 4.1

 

FIFTH SUPPLEMENTAL INDENTURE

 

Fifth Supplemental Indenture (this “Supplemental Indenture”), dated as of January 15, 2016, among Bonstores Holdings One, LLC, a Delaware limited liability company, Bonstores Realty One, LLC, a Delaware limited liability company, Bonstores Holdings Two, LLC, a Delaware limited liability company, and Bonstores Realty Two, LLC, a Delaware limited liability company (collectively, the “Guaranteeing Subsidiaries”), each of which is a subsidiary of The Bon-Ton Stores, Inc., a Pennsylvania corporation (or its permitted successor) (the “Parent”), The Bon-Ton Department Stores, Inc., a Pennsylvania corporation (the “Company”), and Wells Fargo Bank, National Association, a national banking association (or its permitted successor), as trustee and collateral agent under the Indenture referred to below (the “Trustee”).

 

W I T N E S S E T H

 

WHEREAS, the Company and the other Guarantors party thereto have heretofore executed and delivered to the Trustee an indenture (as amended or supplemented to the date hereof, the “Indenture”), dated as of July 9, 2012, providing for the issuance of the Company’s 105/8% Second Lien Senior Secured Notes due 2017 (the “Notes”);

 

WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiaries shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiaries shall, subject to Article Ten of the Indenture, unconditionally guarantee the Notes on the terms and conditions set forth therein (the “Note Guarantee”); and

 

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

 

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company, the Guaranteeing Subsidiaries and the Trustee agree as follows for the equal and ratable benefit of the Holders of the Notes:

 

1.                                      Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

 

2.                                      Agreement to Guarantee.

 

(a)                                 Subject to Article Ten of the Indenture, the Guaranteeing Subsidiaries fully and unconditionally guarantee to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of the Indenture, the Notes or the obligations of the Company hereunder or thereunder, that:

 

(i)                                     the principal of, premium, if any, and interest and Additional Interest, if any, on the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of, premium, if any, and interest and Additional Interest, if any, on the Notes, if

 



 

lawful (subject in all cases to any applicable grace period provided herein), and all other obligations of the Company to the Holders or the Trustee hereunder or thereunder will be promptly paid in full, all in accordance with the terms hereof and thereof; and

 

(ii)                                  in case of any extension of time of payment or renewal of any Notes or any of such other obligations, the same will be promptly paid in full when due in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.  Failing payment when due of any amount so guaranteed for whatever reason, the Guarantors shall be jointly and severally obligated to pay the same immediately.  The Guaranteeing Subsidiaries agree that this is a guarantee of payment and not a guarantee of collection.

 

(b)                                 The Guaranteeing Subsidiaries hereby agree that, to the maximum extent permitted under applicable law, their obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Guarantor.

 

(c)                                  The Guaranteeing Subsidiaries, subject to Section 6.06 of the Indenture, hereby waive diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenants that this Note Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes and the Indenture.

 

(d)                                 If any Holder or the Trustee is required by any court or otherwise to return to the Company, the Guarantors, or any custodian, trustee, liquidator or other similar official acting in relation to any of the Company or the Guarantors, any amount paid by any of them to the Trustee or such Holder, this Note Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect.

 

(e)                                  The Guaranteeing Subsidiaries agree that they shall not be entitled to any right of subrogation in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby.

 

(f)                                   The Guaranteeing Subsidiaries agree that, as between the Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the Obligations guaranteed hereby may be accelerated as provided in Article Six of the Indenture for the purposes of the Note Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Obligations guaranteed hereby, and (y) in the event of any declaration of acceleration of such Obligations as provided in Article Six of the Indenture, such Obligations (whether or not due and payable) shall forthwith become due and payable by the Guarantors for the purpose of the Note Guarantee.

 

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(g)                                  The Guaranteeing Subsidiaries shall have the right to seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair the rights of the Holders under the Note Guarantee.

 

(h)                                 The Guaranteeing Subsidiaries confirm, pursuant to Section 10.02 of the Indenture, that it is the intention of each such Guaranteeing Subsidiary that the Note Guarantee not constitute (i) a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to the Note Guarantee or (ii) an unlawful distribution under any applicable state law prohibiting shareholder distributions by an insolvent subsidiary to the extent applicable to the Note Guarantee.  To effectuate the foregoing intention, the Guaranteeing Subsidiaries and the Trustee hereby irrevocably agree that the obligations of each Guaranteeing Subsidiary will be limited to the maximum amount as will, after giving effect to all other contingent and fixed liabilities of each Guaranteeing Subsidiary that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under Article Ten of the Indenture, result in the obligations of each Guaranteeing Subsidiary under the Note Guarantee not constituting a fraudulent transfer or conveyance or such an unlawful shareholder distribution.

 

3.                                      Execution and Delivery.  The Guaranteeing Subsidiaries agree that the Note Guarantee shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of the Note Guarantee.

 

4.                                      Guaranteeing Subsidiaries May Consolidate, Etc., on Certain Terms.  The Guaranteeing Subsidiaries may not sell or otherwise dispose of all or substantially all of their assets to, or consolidate with or merge with or into, any Person other than as set forth in Section 10.04 of the Indenture.

 

5.                                      Release.  Each Guaranteeing Subsidiary’s Note Guarantee shall be released as set forth in Section 10.05 of the Indenture.

 

6.                                      No Recourse Against Others.  Pursuant to Section 13.07 of the Indenture, no director, officer, employee, incorporator, stockholder, member, manager or partner of any Guaranteeing Subsidiary, as such, shall have any liability for any obligations of any Guaranteeing Subsidiary under the Notes, the Indenture, this Supplemental Indenture, the Note Guarantees, the Security Documents or the Intercreditor Agreement or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder of Notes by accepting a note waives and releases all such liability.  This waiver and release are part of the consideration for the Note Guarantee.

 

7.                                      NEW YORK LAW TO GOVERN.  THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.

 

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8.                                      Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.

 

9.                                      Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

 

10.                               Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiaries and the Company.

 

11.                               FATCA.  The parties to this Supplemental Indenture will treat the Notes as qualifying as a “grandfathered obligation” within the meaning of Treasury regulation section 1.1471-2(b)(2)(i).

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

 

 

BONSTORES HOLDINGS ONE, LLC

 

 

 

 

 

 

 

By:

/s/ J. Gregory Yawman

 

 

Name:

J. Gregory Yawman

 

 

Title:

Vice President — Secretary and General Counsel

 

 

 

 

 

 

 

 

 

BONSTORES REALTY ONE, LLC

 

 

 

 

 

 

 

By:

/s/ J. Gregory Yawman

 

 

Name:

J. Gregory Yawman

 

 

Title:

Vice President — Secretary and General Counsel

 

 

 

 

 

 

 

 

 

BONSTORES HOLDINGS TWO, LLC

 

 

 

 

 

 

 

By:

/s/ J. Gregory Yawman

 

 

Name:

J. Gregory Yawman

 

 

Title:

Vice President — Secretary and General Counsel

 

 

 

 

 

 

 

 

 

BONSTORES REALTY TWO, LLC

 

 

 

 

 

 

 

By:

/s/ J. Gregory Yawman

 

 

Name:

J. Gregory Yawman

 

 

Title:

Vice President — Secretary and General Counsel

 

 

 

 

 

 

 

 

 

THE BON-TON DEPARTMENT STORES, INC.

 

 

 

 

 

 

 

By:

/s/ J. Gregory Yawman

 

 

Name:

J. Gregory Yawman

 

 

Title:

Vice President — General Counsel and Secretary

 

 

 

 

[Signature Page to Fifth Supplemental Indenture]

 



 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee and Collateral Agent

 

 

 

 

 

 

 

 

 

By:

/s/ Raymond Delli Colli

 

 

Name:

Raymond Delli Colli

 

 

Title:

Vice President

 

 

 

 

[Signature Page to Fifth Supplemental Indenture]