Amendment No. 5 to Post-Petition Loan and Security Agreement among Bank of America, N.A., Lenders, Fruit of the Loom, Inc., and Guarantors

Summary

This amendment, dated April 20, 2001, modifies the existing Post-Petition Loan and Security Agreement between Bank of America, N.A. (as Agent), several lender institutions, Fruit of the Loom, Inc. (as Borrower), and its subsidiaries (as Guarantors). The amendment updates the definition of "Adjusted Net Earnings from Operations" and requires execution by the requisite lenders, borrower, and guarantors, as well as approval by the Bankruptcy Court. All other terms of the original agreement remain in effect.

EX-4.(O) 3 c65924ex4-o.txt AMENDMENT #5 TO POST-PETITION LOAN SECURITY AGMT Exhibit 4(o) AMENDMENT NO. 5 TO POST-PETITION LOAN AND SECURITY AGREEMENT This AMENDMENT NO. 5 TO POST-PETITION LOAN AND SECURITY AGREEMENT (this "Amendment") is dated April 20, 2001, and is by and among BANK OF AMERICA, N.A. ("Agent"), the Lenders signatory hereto, FRUIT OF THE LOOM, INC. ("Borrower"), and FRUIT OF THE LOOM, LTD. and certain domestic Subsidiaries of Borrower ("Guarantors"). WHEREAS, the parties hereto are parties to a Post-Petition Loan and Security Agreement dated as of December 29, 1999 (the "Loan Agreement"); and WHEREAS, the parties hereto desire to amend the Loan Agreement as herein set forth: NOW, THEREFORE, for and in consideration of the mutual covenants set forth herein and in the Loan Agreement, the parties hereto agree as follows: 1. Amendments. The following replaces the parenthetical clause in the definition of "Adjusted Net Earnings from Operations" after the first reference to "GAAP" contained therein: "(and excluding inventory variances incurred in a prior year but capitalized and expensed in the current year and including inventory variances incurred in the current year but capitalized and deferred to a following year)". 2. Conditions to Effectiveness. This Amendment shall be effective upon satisfaction of the following conditions precedent: (a) Execution and delivery of this Amendment by Requisite Lenders, Borrower and Guarantors; and (b) Approval by the Bankruptcy Court. 3. Reference to and Effect Upon the Loan Agreement. (a) Except as specifically amended above, the Loan Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed. (b) Upon the effectiveness of this Amendment, each reference in the Loan Agreement to "this Agreement", "hereunder", "hereof", "herein" or words of similar import shall mean and be a reference to the Loan Agreement as amended hereby. 4. Defined Terms. Except as otherwise defined herein, all defined terms herein shall have the meanings ascribed thereto in the Loan Agreement. 5. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF ILLINOIS. 6. Headings. Section headings in this amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purposes. 7. Counterparts. This Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed an original, but all such counterparts shall constitute one and the same instrument. (signature page follows) IN WITNESS WHEREOF, this Amendment has been duly executed as of the date first written above. BANK OF AMERICA, N.A., as Agent and Lender By: -------------------------------------------------- Name: Stephen G. Bernardo Title: Vice President AMSOUTH BANK, as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- THE BANK OF NOVA SCOTIA, as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- CIT GROUP/COMMERCIAL SERVICES, INC., as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- CITICORP USA, INC., as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- 3 CONGRESS FINANCIAL CORPORATION (CENTRAL), as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- CREDIT AGRICOLE INDOSUEZ, as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- CREDIT SUISSE FIRST BOSTON, as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- debis FINANCIAL SERVICES, INC., as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- FLEET CAPITAL CORPORATION, as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- 4 FOOTHILL CAPITAL CORPORATION, as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- GENERAL ELECTRIC CAPITAL CORPORATION, as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- GMAC BUSINESS CREDIT, LLC, as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- GOLDMAN SACHS CREDIT PARTNERS, L.P., as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- HELLER FINANCIAL, INC., as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- 5 ISRAEL DISCOUNT BANK, as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- LASALLE BUSINESS CREDIT, INC., as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- NATIONAL CITY COMMERCIAL FINANCE, INC., as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- THE PROVIDENT BANK, as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- TRANSAMERICA BUSINESS CREDIT CORPORATION, as Lender By: -------------------------------------------------- Name: -------------------------------------------- Title: -------------------------------------------- 6 BORROWER in its capacity as debtor-in-possession: FRUIT OF THE LOOM, INC., a Delaware corporation By: ---------------------------------- Name: Brian J. Hanigan Title: Vice President and Treasurer GUARANTORS each in its capacity as debtor-in-possession: MARTIN MILLS, INC., a Louisiana corporation PRO PLAYER, INC., a New York corporation RABUN APPAREL, INC., a Georgia corporation SALEM SPORTSWEAR CORPORATION, a Delaware corporation UNION SALES, INC., a Delaware corporation UNION YARN MILLS, INC., an Alabama corporation WHITMIRE MANUFACTURING, INC., a South Carolina corporation WINFIELD COTTON MILL, INC., an Alabama corporation FTL REGIONAL SALES COMPANY, INC., a Delaware corporation LEESBURG YARN MILLS, INC., an Alabama corporation 7 SALEM SPORTSWEAR, INC., a New Hampshire corporation FRUIT OF THE LOOM TRADING COMPANY, a Delaware corporation UNION UNDERWEAR COMPANY, INC., a New York corporation ALICEVILLE COTTON MILL, INC., an Alabama corporation THE B.V.D. LICENSING CORPORATION, a Delaware corporation FAYETTE COTTON MILL, INC., an Alabama corporation FOL CARIBBEAN CORPORATION, a Delaware corporation FRUIT OF THE LOOM ARKANSAS, INC., an Arkansas corporation FRUIT OF THE LOOM CARIBBEAN, INC., a Delaware corporation FRUIT OF THE LOOM, INC., a New York corporation FRUIT OF THE LOOM TEXAS, INC., a Texas corporation FTL SALES COMPANY, INC., a New York corporation GITANO FASHIONS LIMITED, a Delaware corporation GREENVILLE MANUFACTURING, INC., a Mississippi corporation FOL R&D INC., a New York corporation 8 NWI LAND MANAGEMENT, INC., a Delaware corporation ARTEX MANUFACTURING COMPANY, INC., a Delaware corporation FTL INVESTMENTS, INC., a Delaware corporation LEESBURG KNITTING MILLS, INC., an Alabama corporation DEKALB KNITTING CORP., an Alabama corporation SHERMAN WAREHOUSE CORP., a Mississippi corporation FTL SYSTEMS, INC., a Tennessee corporation By: ------------------------------------------------ Name: John J. Ray III Title: Chief Administrative Officer of each of the foregoing entities identified as a Guarantor FRUIT OF THE LOOM, LTD., a Cayman Islands corporation By: ------------------------------------------------ Name: John J. Ray III Title: Chief Administrative Officer 9