1
EXHIBIT 10.1
August 31, 1999
WESTPOINT XXXXXXX INC.
000 Xxxx Xxxxx Xxxxxx
Xxxx Xxxxx, Xxxxxxx 00000
Attention: Xx. Xxxxxx X. Xxxxxxxxxx
Re: Revision of Definition of "Maximum Restricted Payment Amount"
and Minimum Net Worth Covenant
Dear Sirs:
Reference is made to that certain Second Amended and Restated Credit Agreement,
dated as of June 9, 1998, among WestPoint Xxxxxxx Inc. ("Borrower"), WestPoint
Xxxxxxx (UK) Limited and WestPoint Xxxxxxx (Europe) Limited (the "Foreign
Borrowers"), the various banks and lending institutions party thereto (the
"Banks"), and NationsBank, N.A. as agent (now known as Bank of America, N.A.,
the "Agent") for the Banks (as amended from time to time, the "Credit
Agreement"). Capitalized terms not otherwise defined herein shall have the
meanings ascribed to them in the Credit Agreement.
By their signatures below, the Borrower, the Foreign Borrowers and the Required
Banks hereby agree that the existing definition of "Maximum Restricted Payment
Amount" in Section 1.1 of the Credit Agreement shall be amended to read in its
entirety as follows:
"Maximum Restricted Payment Amount" means the sum of (i)
$251,374,000, plus (ii) 50% of the Consolidated Net Income from and
after September 30, 1999 until any relevant measurement date, plus
(iii) the Net Cash Proceeds received by the Borrower from the exercise
of stock warrants or options by current or former employees or
directors of the Borrower in respect of Capital Stock of the Borrower
from and after June 30, 1999.
By their signatures below, the Borrower, the Foreign Borrowers and the Required
Banks hereby agree that Section 7.11(a) be amended to read in its entirety as
follows:
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WestPoint Xxxxxxx, Inc.
August 31, 1999
Page 2
Minimum Consolidated Net Worth. Have a Consolidated Net Worth as of the
last day of each fiscal quarter of not less than (i) $90,000,000, (ii)
increased on a cumulative basis as of the end of each fiscal quarter of the
Consolidated Parties, commencing with the fiscal quarter ending June 30,
1998, by an amount equal to forty percent (40%) of Consolidated Net Income
(to the extent positive) for the fiscal quarter then ended, and (iii)
further increased on a cumulative basis by fifty percent (50%) of
Consolidated Net Income (to the extent positive) for the period October 1,
1998 through September 30, 1999.
By their signatures below, each of the Subsidiary Guarantors acknowledges and
consents to this revision in the definition of "Maximum Restricted Payment
Amount" and this amendment to section 7.11(a). Each Subsidiary Guarantor agrees
that these modifications to the Credit Agreement do not operate to reduce or
discharge any of such Subsidiary's obligations under any of the Collateral
Documents.
Until this letter agreement shall have been executed by the Borrower, the
Foreign Borrowers, the Subsidiary Guarantors, and the Required Banks, it shall
not be effective in revising the definition of "Maximum Restricted Payment
Amount" or section 7.11(a) of the Credit Agreement. Except for the revision to
the definition of "Maximum Restricted Payment Amount" and the amendment to
section 7.11(a), each effected hereby upon the execution of this letter
agreement by the Borrower, the Foreign Borrowers, the Subsidiary Guarantors,
and the Required Banks, the Credit Agreement shall remain in full force and
effect.
Please execute this letter agreement and cause each of the Foreign Borrowers
and the Subsidiary Guarantors to execute this letter agreement, and return such
completed signature pages to the Agent at your earliest convenience.
Sincerely,
BANK OF AMERICA, N.A., formerly
known as NationsBank, N.A., in its
capacity as the Agent
By: /s/ Xxxxx X. Xxxxxxx
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XXXXX X. XXXXXXX
Title: Vice President
---------------------------------
ACKNOWLEDGED AND AGREED:
WESTPOINT XXXXXXX INC.
By: /s/ Xxxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxxx X. Xxxxxxxxxx
Title: Executive Vice President-Finance &
Chief Financial Officer
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[Signatures Continued]
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WestPoint Xxxxxxx Inc.
August 31, 1999
Page 3
WESTPOINT XXXXXXX (UK) LIMITED
By: Xxxxxx X. Xxxxxxxxxx
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Xxxxxx X. Xxxxxxxxxx
Title: Director, Vice President & Treasurer
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WESTPOINT XXXXXXX (EUROPE) LIMITED
By: Xxxxxx X. Xxxxxxxxxx
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Xxxxxx X. Xxxxxxxxxx
Title: Director, Vice President & Treasurer
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WESTPOINT XXXXXXX STORES, INC.
By: Xxxxxx X. Xxxxxxxxxx
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Xxxxxx X. Xxxxxxxxxx
Title: Vice President & Treasurer
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X.X. XXXXXXX & CO., INC.
By: Xxxxxx X. Xxxxxxxxxx
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Xxxxxx X. Xxxxxxxxxx
Title: Vice President & Treasurer
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WESTPOINT-PEPPERELL ENTERPRISES, INC.
By: Xxxxxx X. Xxxxx
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Xxxxxx X. Xxxxx
Title: Vice President & Assistant Treasurer
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X.X. XXXXXXX ENTERPRISES, INC.
By: Xxxxxx X. Xxxxx
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Xxxxxx X. Xxxxx
Title: Vice President & Assistant Treasurer
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[Signatures Continued]
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WestPoint Xxxxxxx Inc.
August 31, 1999
Page 4
XXXXXXXXX, INC.
By: Xxxxxx X. Xxxxxxxxxx
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Xxxxxx X. Xxxxxxxxxx
Title: Vice President & Treasurer
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BANK OF AMERICA, N.A.,
formerly known as NationsBank, N.A., as a Bank
By: Xxxxx X. Xxxxxxx
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XXXXX X. XXXXXXX
Title: Vice President
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THE BANK OF NEW YORK
By: Xxxxxx Xxxxxxxxxxx
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Xxxxxx Xxxxxxxxxxx
Title: Assistant Vice President
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THE FIRST NATIONAL BANK OF CHICAGO
By: Xxxxx X. Xxxxx
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Title: ASSISTANT VICE PRESIDENT
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SCOTIABANC INC.
By: Xxxxxxx X. Xxxxxxx
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Xxxxxxx X. Xxxxxxx
Title: Senior Relationship Manager
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[Signatures Continued]
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WestPoint Xxxxxxx Inc.
August 31, 1999
Page 5
WACHOVIA BANK, N.A.
By: /s/
----------------------------------------
Title: Senior Vice President
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SOCIETE GENERALE
By:
-----------------------------------------
Title:
--------------------------------------
ABN AMRO BANK, N.V.
By:
-----------------------------------------
Title:
--------------------------------------
SUNTRUST BANK, ATLANTA
By: /s/ Xxxxx Xxxx
----------------------------------------
XXXXX XXXX
Title: DIRECTOR, SENIOR RELATIONSHIP MANAGER
-------------------------------------
By:
-----------------------------------------
Title:
--------------------------------------
FIRST UNION NATIONAL BANK
By: /s/
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Title: SVP
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[Signatures Continued]
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WestPoint Xxxxxxx Inc.
August 31, 1999
Page 6
FLEET BANK, N.A.
By: /s/
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Title: Vice President
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AMSOUTH BANK
By: /s/
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Title: Vice President
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COOPERATIEVE CENTRALE RAIFFEISEN-
BOERENLEENBANK B.A., "RABOBANK NEDERLAND",
NEW YORK BRANCH
By:
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Title:
---------------------------------
By:
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Title:
---------------------------------
NATIONAL WESTMINSTER BANK PLC
By:
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Title:
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