EXHIBIT 10.05
FIRST AMENDMENT TO DEBTOR IN POSSESSION LOAN AND SECURITY
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AGREEMENT
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This First Amendment to Debtor In Possession Loan and Security Agreement is
made as of this 18th day of July, 2001 by and among
CASUAL MALE CORP. (the "Borrowers' Representative"), a Massachusetts
corporation, having a principal place of business at ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, as agent for the Borrowers, being those
Persons named on Exhibit 1 hereto, debtors and debtors in possession;
The Borrowers;
each of the Revolving Credit Lenders party to the Loan Agreement (defined
below) (together with each of their successors and assigns, referred to
individually as a "Revolving Credit Lender" and collectively as the
"Revolving Credit Lenders"), and
FLEET RETAIL FINANCE INC., as Administrative Agent and Collateral Agent, a
Delaware corporation, having its principal place of business at ▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇; and
BACK BAY CAPITAL FUNDING LLC, as Tranche B Lender and as Tranche C Lender,
in consideration of the mutual covenants herein contained and benefits to be
derived herefrom.
W I T N E S S E T H
A. Reference is made to the Debtor In Possession Loan and Security
Agreement (the "Loan Agreement") dated as of May 18, 2001 by and among the
Borrowers' Representative, the Borrowers, the Revolving Credit Lenders, the
Tranche B Lender, the Tranche C Lender, the Administrative Agent and the
Collateral Agent.
B. The parties to the Loan Agreement desire to modify and amend certain
provisions of the Loan Agreement, as provided herein.
Accordingly, the parties hereto agree as follows:
1. Definitions. Capitalized terms used herein and not otherwise defined
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herein shall have the meanings assigned to such terms in the Loan Agreement.
2. Amendment to Article 2. The provisions of Section 2-16(a) of the Loan
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Agreement are hereby amended by deleting the words "eighteen months" appearing
in the second line thereof and inserting the words "twelve months" in their
stead.
3. Amendment to Article 3. The provisions of Section 3-3(b) of the
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Loan Agreement are hereby amended by deleting clause (ii) thereof in its
entirety.
4. Amendments to Exhibits to the Loan Agreement. (a) The provisions of
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Exhibit 2:2-12 are hereby amended by adding the following after the chart
appearing therein:
The Base Margin and the Libor Margin based upon the Pricing Grid shall
initially be determined on the Pricing Grid Change Date and shall be reset
every three months thereafter.
(b) Exhibit 7:7-11 to the Loan Agreement is hereby deleted in its entirety
and a new Exhibit 7:7-11 in the form annexed to this First Amendment is
substituted in its stead.
5. Conditions Precedent to Effectiveness. This First Amendment shall
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not be effective until each of the following conditions precedent have been
fulfilled to the satisfaction of the Administrative Agent:
a. This First Amendment shall have been duly executed and delivered by
the respective parties hereto and, shall be in full force and effect
and shall be in form and substance satisfactory to the
Administrative Agent and the Lenders.
b. All action on the part of the Borrowers necessary for the valid
execution, delivery and performance by the Borrowers of this First
Amendment shall have been duly and effectively taken and evidence
thereof satisfactory to the Administrative Agent shall have been
provided to the Administrative Agent.
c. The Final Borrowing Order shall have been entered in the
Proceedings, which Final Borrowing Order shall incorporate, among
other things, approval of this First Amendment.
d. The Borrowers shall have provided such additional instruments and
documents to the Administrative Agent as the Administrative Agent
and Administrative Agent's counsel may have reasonably requested.
6. Miscellaneous.
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a. This First Amendment may be executed in several counterparts and by
each party on a separate counterpart, each of which when so executed
and delivered shall be an original, and all of which together shall
constitute one instrument.
b. This First Amendment expresses the entire understanding of the
parties with respect to the transactions contemplated hereby. No
prior negotiations or discussions shall limit, modify, or otherwise
affect the provisions hereof.
c. Any determination that any provision of this First Amendment or any
application hereof is invalid, illegal or unenforceable in any
respect and in any instance shall not effect the validity, legality,
or enforceability of such provision in any other instance, or the
validity, legality or enforceability of any other provisions of this
First Amendment.
d. The Borrowers shall pay on demand all costs and expenses of the
Agents and the Lenders, including, without limitation, reasonable
attorneys' fees in connection with the preparation, negotiation,
execution and delivery of this First Amendment.
e. The Borrowers warrant and represent that the Borrowers have
consulted with independent legal counsel of the Borrowers' selection
in connection with this First Amendment and is not relying on any
representations or warranties of the Agents, the Lenders or their
counsel in entering into this First Amendment.
IN WITNESS WHEREOF, the parties have duly executed this First Amendment as
of the day and year first above written.
CASUAL MALE CORP.
by
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Name: ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Chief Financial Officer
THE BORROWERS
▇▇▇▇▇ SHOE, INC.
JBI, INC.
JBI APPAREL, INC.
THE CASUAL MALE, INC.
WGS CORP.
TCMB&T, INC
LP INNOVATIONS, INC.
▇▇▇▇▇▇▇ COMPANIES, INC.
BUCKMIN, INC.
ELM EQUIPMENT CORP.
JBI HOLDING COMPANY, INC.
TCM HOLDING COMPANY, INC.
ISAB, INC.
▇▇▇▇▇ SHOE INTERNATIONAL,
INC.
WHITE CAP FOOTWEAR, INC
by
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Name: ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Chief Financial Officer
FLEET RETAIL FINANCE INC.,
as Administrative Agent, as Collateral
Agent, as Swingline Lender, and as
Revolving Credit Lender
By:___________________________
Name:_________________________
Title:_______________________
BACK BAY CAPITAL FUNDING, LLC
as Tranche B Lender and Tranche C
Lender
By:________________________
Name:______________________
Title:_______________________
The following Lenders consent to the amendments set forth herein with the
exception of the amendment to Exhibit 7:7-11, as to which their consent is
not required.
FOOTHILL CAPITAL CORPORATION
By.............................
Name..........................
Title..........................
▇▇▇▇▇▇ FINANCIAL, INC.
By................................
Name............................
Title.............................
LASALLE BUSINESS CREDIT, INC
By..............................
Name...........................
Title...........................
NATIONAL CITY COMMERCIAL
FINANCE, INC.
By................................
Name..............................
Title.............................
IBJ WHITEHALL BUSINESS CREDIT
CORP.
By................................
Name..............................
Title.............................
THE PROVIDENT BANK
By................................
Name..............................
Title.............................
FINANCIAL PERFORMANCE CONVENANTS
Minimum Cumulative EBITDAR. The Borrowers shall not permit or suffer the
following, tested as of the last day of each month (commencing with June 30,
2001 and through December 31, 2001) on a cumulative basis dating back to
January 31, 2001, to be less than the following minimum cumulative amount: (a)
Consolidated EBITDAR minus (b) 100% of any adequate protection payments made by
the Borrowers during such period and not reflected in the Business Plan (without
regard to any updating of the Business Plan), to the extent that such adequate
protection payments were not otherwise included as reductions to EBITDAR for the
period of measurement:
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Month Ending: Minimum Cumulative EBITDAR
$ Millions
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June, 2001* 6.0
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July, 2001* 5.3
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August, 2001* 5.0
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September, 2001* 7.7
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October, 2001 10.3
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November, 2001 14.2
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December, 2001 27.1
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* The Borrowers' compliance with the Minimum Cumulative EBITDAR test for
the subject months will be waived unless Excess Availability is less than
$17,500,000 for any three consecutive days during such period (the "Test
Condition"). If the Test Condition occurs, the Borrower shall be obligated to
comply with the Minimum Cumulative EBITDAR test for the subject month in which
the Test Condition occurs and shall also be required to be in compliance with
the Minimum Cumulative EBITDAR test for each month both preceding, and
subsequent to, the month in which the Test Condition occurs (failing which an
Event of Default shall be deemed to have arisen). In any event, whether or not
the Test Condition has occurred, the Borrowers must comply with the Minimum
Cumulative EBITDAR test for October, 2001 and each month thereafter.
Minimum Rolling Four Quarter EBITDAR. The Borrowers shall not permit or
suffer the following, tested as of the last day of each month (commencing with
January, 2002) on a trailing twelve month basis, to be less than the following
minimum cumulative amount: (a) Consolidated EBITDAR minus (b) 100% of any
adequate protection payments made by the Borrowers during such period and not
reflected in the
Business Plan (without regard to any updating of the Business Plan), to the
extent that such adequate protection payments were not otherwise included as
reductions to EBITDAR for the period of measurement:
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Month Ending: Minimum EBITDAR (Rolling 12 Month
Basis):
$ Millions
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January, 2002 22.5
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February, 2002 22.6
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March, 2002 21.8
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April, 2002 22.0
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May, 2002 23.1
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June, 2002 23.5
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July, 2002 25.7
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August, 2002 25.8
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September, 2002 25.8
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October, 2002 25.9
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November, 2002 26.0
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December, 2002 25.9
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January, 2003 26.0
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February, 2003 26.0
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March, 2003 26.0
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April, 2003 26.0
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May, 2003 26.0
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Capital Expenditures. The Borrower shall not permit or suffer its
Consolidated Capital Expenditures to exceed the following:
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Fiscal Year Maximum for Entire Maximum for Each
Fiscal Year Quarter
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EXHIBIT 7:7-11
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2002 $5,000,000 $2,500,000
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2003 6,000,000 2,500,000
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Excess Availability. The Borrower shall at all times have Excess
Availability of not less than the following:
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From To Minimum Excess
Availability ($ Millions)
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Closing November 30, 2001 5.0
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December 1, 2001 Maturity Date 11.0
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EXHIBIT 7:7-11
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