Exhibit 10.1
FOURTH AMENDMENT TO CREDIT
AGREEMENT
THIS FOURTH AMENDMENT TO CREDIT
AGREEMENT (this
“Amendment”) dated as of August 10, 2009, is by and
among HOOKER FURNITURE CORPORATION (the
“Borrower”), THE PERSONS IDENTIFIED AS LENDERS ON
THE SIGNATURE PAGE HERETO (whether one or more, the
“Lenders”) and BANK OF AMERICA, N.A. , as agent
for the Lenders (the “Agent”).
WHEREAS , the Borrower, the Lenders and the Agent are
parties to a Credit Agreement dated as of April 30, 2003, as
amended by a First Amendment to Credit Agreement dated as of
February 18, 2005, a Second Amendment to Credit Agreement dated as
of February 27, 2008, and a Third Amendment to Credit Agreement
dated as of February 19, 2009 (such credit agreement and
amendments, the “Existing Credit Agreement”);
and
WHEREAS , the Borrower has requested that the Lenders
make certain amendments to the Existing Credit Agreement;
and
WHEREAS, the Lenders are willing to do so, as more fully
set forth below, but only on the terms and conditions set forth
herein.
NOW, THEREFORE , in consideration of the premises and the
mutual covenants contained herein, the parties agree as
follows:
1.
Definitions . “Amended Credit
Agreement” means the Existing Credit Agreement as amended by
this Amendment. Capitalized terms used in this Amendment
and not otherwise defined shall have the meanings ascribed to them
in the Existing Credit Agreement.
2.
Payment in full of Tranche A Term Loan and the Tranche B Term
Loan. Upon execution of this Amendment, the
Borrower has paid in full the Tranche A Term Loan and the Tranche B
Term Loan described in the Existing Credit Agreement.
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Amendments to Section 6.12 “Financial
Covenants” of the Existing Credit Agreement
.
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Upon receipt of
and in consideration of the payments described in Section 2 of this
Amendment, the financial covenant “ Debt Service Coverage
Ratio ” described in Section 6.12(b) of the Existing
Credit Agreement shall be terminated effective as of July 30,
2009 ; and
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Effective as
of July 30, 2009 , the
financial covenant “ Funded Debt to EBITDA Ratio
” set forth in Section 6.12(c) shall be modified to reflect
the ratio indicated for the period from December 1, 2004, to July
29, 2009, as 1.25:1.0, and supplemented to reflect the ratio
indicated for the period from July 30, 2009, and thereafter, as
2.0:1.0. The remainder of Section 6.12(c) shall remain
unchanged in the Amended Credit Agreement except as described in
this paragraph.
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4.
References in Other Credit Documents .
All references in the Existing Credit Agreement to the "Credit
Agreement" and all references in the other Loan Documents to the
"Credit Agreement" shall be deemed to refer to the Amended Credit
Agreement.
5.
Representations and Warranties . The
B
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