Exhibit 10.1

 

EXECUTION COPY

 

 

AMENDMENT No. 3, CONSENT and RELEASE dated as of August 18, 2004 (this
“Amendment”), to the Credit Agreement dated as of January 25, 2001, as amended
by Amendment No. 1 and Agreement dated as of February 11, 2002 and Amendment No.
2 dated as of May 1, 2004 (the “Credit Agreement”), among COLLINS & AIKMAN
FLOORCOVERINGS, INC., a Delaware corporation (the “Borrower”), TANDUS GROUP,
INC., a Virginia corporation formerly named CAF Holdings, Inc. (“Holdings”), the
Lenders (as defined therein) and CREDIT SUISSE FIRST BOSTON, as administrative
agent (in such capacity, the “Administrative Agent”) and as a collateral agent
(in such capacity, the “Collateral Agent”) for the Lenders.

 

A. Pursuant to the Credit Agreement, the Lenders have extended, and have agreed
to extend, credit to the Borrower.

 

B. The Borrower has informed the Administrative Agent that its wholly owned
Subsidiary, Monterey Carpets, Inc., a Delaware corporation and a Subsidiary
Guarantor (“Monterey”), intends (i) to transfer (the “Crossley Transfer”) fixed
assets with an aggregate net book value (as of the end of June 2004) of
approximately $2,500,000 to Crossley Carpet Mills Limited, a Nova Scotia limited
company and a wholly owned Subsidiary (“Crossley”), (ii) to dispose of and/or
transfer to the Borrower substantially all of its other fixed assets (the
“Monterey Disposition”), and (iii) to transfer all or substantially all of its
accounts receivable, inventory and other liquid current assets to the Borrower
(the “Current Assets Transfer” and, together with the Crossley Transfer and the
Monterey Disposition, the “Monterey Transactions”).

 

C. In connection with the Monterey Transactions, the Borrower has requested that
Monterey be released from its obligations as a Subsidiary Guarantor under the
Subsidiary Guarantee Agreement and the Security Agreement and that certain
amendments to the Credit Agreement be made as set forth herein. The Lenders are
willing to release Monterey and to amend the Credit Agreement on the terms and
subject to the conditions set forth herein.

 

D. Capitalized terms used but not defined herein shall have the meanings
assigned to them in the Credit Agreement.

 

Accordingly, in consideration of the mutual agreements herein contained and
other good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1. Consent and Release. (a) The Lenders hereby consent to the Monterey
Transactions and hereby agree that no part of the Monterey Transactions shall
constitute an Asset Sale for any purpose of the Credit Agreement. The Lenders
hereby authorize the Collateral Agent to release any and all Liens held by the
Collateral Agent in or on the assets forming part of the Crossley Transfer.

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(b) Effective upon the Amendment No. 3 Effective Date (as defined below), the
Lenders and the Collateral Agent hereby release Monterey from all of its
obligations as a Subsidiary Guarantor under the Subsidiary Guarantee Agreement
and the Security Agreement and any other Loan Documents to which it is a party.

 

SECTION 2. Amendments. (a) Section 1.01 of the Credit Agreement is hereby
amended by inserting in the appropriate alphabetical order therein the
following:

 

“Amendment No. 3” shall mean Amendment No. 3, Consent and Release dated as of
August 18, 2004, among the Borrower, Holdings, the Lenders, the Administrative
Agent and the Collateral Agent, to this Agreement.

 

“Amendment No. 3 Effective Date” shall mean the date on which Amendment No. 3
becomes effective in accordance with its terms.

 

“Crossley” shall mean Crossley Carpet Mills Limited, a Nova Scotia limited
company and a wholly owned Subsidiary.

 

(b) The definition of the term “Applicable Percentage” set forth in Section 1.01
of the Credit Agreement is hereby amended and restated in its entirety to read
as follows:

 

“Applicable Percentage” shall mean, for any day, with respect to any Eurodollar
Tranche B Term Loan, ABR Tranche B Term Loan, Eurodollar Tranche A Term Loan,
Eurodollar Revolving Loan, ABR Tranche A Term Loan or ABR Revolving Loan, or
with respect to the Commitment Fees, as the case may be, the applicable
percentage set forth below under the caption “Eurodollar Spread—Tranche B Term
Loans”, “ABR Spread—Tranche B Term Loans”, “Eurodollar Spread—Tranche A Term
Loans and Revolving Loans”, “ABR Spread—Tranche A Term Loans and Revolving
Loans” or “Commitment Fee Percentage”, as the case may be, based upon (a) the
Senior Leverage Ratio, in the case of the Tranche B Term Loans, or (b) the
Leverage Ratio, in all other cases, in each case as of the relevant date of
determination:

 

    

Eurodollar
Spread—Tranche A
Term Loans and

Revolving Loans

--------------------------------------------------------------------------------

    ABR Spread—
Tranche A Term
Loans and
Revolving Loans

--------------------------------------------------------------------------------

    Commitment
Fee Percentage

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Category 1

Greater than 3.00 to 1.00

   3.25 %   2.25 %   0.500 %

Category 2

Greater than 2.50 to 1.00 but less than or equal to 3.00 to 1.00

   3.00 %   2.00 %   0.500 %

Category 3

Greater than 2.00 to 1.00 but less than or equal to 2.50 to 1.00

   2.75 %   1.75 %   0.500 %

Category 4

Less than or equal to 2.00 to 1.00

   2.50 %   1.50 %   0.375 %

 

2

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Senior Leverage Ratio

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Eurodollar Spread—

Tranche B Term Loans

--------------------------------------------------------------------------------

    ABR Spread— Tranche B
Term Loans

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Greater than 1.50 to 1.00

   3.00 %   2.00 %

Less than or equal to 1.50 to 1.00

   2.75 %   1.75 %

 

Each change in the Applicable Percentage resulting from a change in the Leverage
Ratio or the Senior Leverage Ratio, as the case may be, shall be effective with
respect to all applicable Loans, Commitments and Letters of Credit outstanding
on and after the date of delivery to the Administrative Agent of the financial
statements and certificates required by Section 5.04(a) or (b) and Section
5.04(d), respectively, indicating such change until the date immediately
preceding the next date of delivery of such financial statements and
certificates indicating another such change. Notwithstanding the foregoing, (a)
at any time during which the Borrower has failed to deliver the financial
statements and certificates required by Section 5.04(a) or (b) and Section
5.04(d), respectively, and such failure shall continue unremedied for a period
of three Business Days, or (b) at any time after the occurrence and during the
continuance of an Event of Default, each of the Leverage Ratio and the Senior
Leverage Ratio shall be deemed to be in Category 1 for purposes of determining
the Applicable Percentage.”

 

(c) The definition of the term “Consolidated EBITDA” set forth in Section 1.01
of the Credit Agreement is hereby amended by inserting at the end thereof the
following:

 

“In addition, solely for purposes of determining the Borrower’s compliance with
Sections 6.11, 6.12 and 6.13, in determining Consolidated EBITDA for any period,
there shall be added to Consolidated Net Income for such period (to the extent
deducted in determining such Consolidated Net Income) the amount of any fees,
costs or other expenses in an aggregate amount not to exceed $10,000,000
incurred by the Borrower and its Subsidiaries in connection with Amendment No. 3
and in connection with the Monterey Transactions (as defined therein), including
plant closure and preparation costs, moving and reinstallation costs, severance
costs and retention bonuses, integration costs and the fees and expenses of
professional advisors.”

 

3

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(d) Section 6.04(a) of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:

 

“(a) (i) loans and investments by Holdings, the Borrower and the Subsidiaries
existing on the Amendment No. 3 Effective Date in or to the Borrower and the
Subsidiaries, (ii) additional investments by Holdings, the Borrower or any of
its Subsidiaries in the Equity Interests of the Borrower or any of its
Subsidiaries; provided that (A) any such Equity Interests held by a Loan Party
shall be pledged pursuant to the Pledge Agreement (subject to the limitations
applicable to voting stock of a Foreign Subsidiary referred to in Section
4.02(e)) and (B) the aggregate amount of investments by Loan Parties in, and
loans and advances by Loan Parties to, Subsidiaries that are not Loan Parties
pursuant to this clause (ii)(B) shall not exceed the sum of $5,000,000 plus the
Net Cash Proceeds of Private Equity Issuances attributable thereto at any time
outstanding, (iii) additional loans to or investments in Crossley in an
aggregate amount at any time outstanding not in excess of $10,000,000 and (iv)
the Monterey Transactions (as defined in Amendment No. 3)”

 

SECTION 3. Effectiveness. This Amendment shall become effective as of the date
(the “Amendment Effective Date”) occurring on or prior to August 20, 2004, that
the following conditions are satisfied:

 

(a) Monterey shall have completed the Current Assets Transfer; and

 

(b) the Administrative Agent shall have received counterparts of this Amendment
that, when taken together, bear the signatures of (i) the Borrower, (ii)
Holdings, (iii) the Subsidiary Guarantors and (iv) each Lender (after giving
effect to any prior or concurrent assignment by Lenders, whether pursuant to
Section 2.21 of the Credit Agreement or otherwise).

 

SECTION 4. Effect of Amendment. Except as expressly set forth herein, this
Amendment shall not by implication or otherwise limit, impair, constitute a
waiver of, or otherwise affect the rights and remedies of the Lenders, the
Collateral Agent or the Administrative Agent under the Credit Agreement or any
other Loan Document, and shall not alter, modify, amend or in any way affect any
of the terms, conditions, obligations, covenants or agreements contained in the
Credit Agreement or any other Loan Document, all of which are ratified and
affirmed in all respects and shall continue

 

4

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in full force and effect. Nothing herein shall be deemed to entitle any Loan
Party to a consent to, or a waiver, amendment, modification or other change of,
any of the terms, conditions, obligations, covenants or agreements contained in
the Credit Agreement or any other Loan Document in similar or different
circumstances. This Amendment shall apply and be effective only with respect to
the provisions of the Credit Agreement specifically referred to herein. After
the date hereof, any reference to the Credit Agreement shall mean the Credit
Agreement, as modified hereby. This Amendment shall constitute a “Loan Document”
for all purposes of the Credit Agreement and the other Loan Documents.

 

SECTION 5. Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same contract. Delivery
of an executed counterpart of a signature page of this Amendment by facsimile
transmission shall be as effective as delivery of a manually executed
counterpart hereof.

 

SECTION 6. Applicable Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 7. Headings. The headings of this Amendment are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

 

SECTION 8. Expenses. The Borrower agrees to reimburse the Administrative Agent
for all reasonable out-of-pocket expenses incurred in connection with this
Amendment, including the reasonable fees, charges and disbursements of Cravath,
Swaine & Moore LLP, counsel for the Administrative Agent.

 

SECTION 9. Acknowledgment of Guarantors. Each of the Guarantors hereby
acknowledges receipt and notice of, and consents to the terms of, this
Amendment.

 

5

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

COLLINS & AIKMAN FLOORCOVERINGS, INC.,

by

 

/s/ Leonard F. Ferro

--------------------------------------------------------------------------------

Name:

 

Leonard F. Ferro

Title:

 

CFO

 

TANDUS GROUP, INC.,

by

 

/s/ Edgar M. Bridger

--------------------------------------------------------------------------------

Name:

 

Edgar M. Bridger

Title:

 

CEO

 

EACH OF THE SUBSIDIARY GUARANTORS LISTED ON SCHEDULE I HERETO,

by

 

/s/ Edgar M. Bridger

--------------------------------------------------------------------------------

Name:

 

Edgar M. Bridger

Title:

 

CEO

 

CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch,
individually, and as Administrative Agent and Collateral Agent,

by

 

/s/ Dana F. Klein

--------------------------------------------------------------------------------

Name:

 

Dana F. Klein

Title:

 

Managing Director

by

 

/s/ S. William Fox

--------------------------------------------------------------------------------

Name:

 

S. William Fox

Title:

 

Director

 

6

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: AMCO Insurance

    By:  

/s/ Thomas S. Leggett

--------------------------------------------------------------------------------

    Name:  

Thomas S. Leggett

    Title:  

Associate Vice President

       

Public Bonds

 

7

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: ANTARES CAPITAL CORPORATION By:  

/s/ David Mahon

--------------------------------------------------------------------------------

Name:  

David Mahon

Title:  

Director

 

8

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: ANTARES FUNDING, L.P.

By:

  JP Morgan Chase Bank, as trustee of the Antares Funding Trust created under
the Trust Agreement dated as of November 30, 1999. By:  

/s/ Leslie Hundley

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Name:   Leslie Hundley Title:   AVP

 

9

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: The Governor and Company of the Bank of Ireland By:  

/s/ Sorka Kelly

--------------------------------------------------------------------------------

 

/s/ Geraldine Hannon

--------------------------------------------------------------------------------

Name:  

Sorka Kelly

 

Geraldine Hannon

Title:  

AUTHORISED SIGNATORIES

 

10

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: Bear Stearns Investment Products, Inc.

By:  

/s/ John E. McDermott

--------------------------------------------------------------------------------

Name:  

John E. McDermott

Title:  

Vice President

 

11

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: Black Diamond CLO 1998-1, Ltd.

By:  

/s/ Alan Corkish

--------------------------------------------------------------------------------

Name:  

Alan Corkish

Title:  

Director

 

12

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: Black Diamond CLO 2000-1, Ltd. By:      

/s/ Alan Corkish

--------------------------------------------------------------------------------

Name:      

Alan Corkish

Title:      

Director

 

13

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: Black Diamond International Funding, Ltd.

By:

 

/s/ Alan Corkish

--------------------------------------------------------------------------------

Name:

 

Alan Corkish

Title:

 

Director

 

14

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: BNP PARIBAS

By:

     

/s/ Eric Toizer

--------------------------------------------------------------------------------

Name:

     

Eric Toizer

Title:

     

Managing Director

By:

     

/s/ Lee Buckner

--------------------------------------------------------------------------------

Name:

     

Lee Buckner

Title:

     

Managing Director

 

15

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: SANKATY ADVISORS, LLC AS COLLATERAL MANAGER FOR CASTLE HILL
I-INGOTS, LTD., AS TERM LENDER

By:

     

/s/ Diane J. Exter

--------------------------------------------------------------------------------

Name:

     

Diane J. Exter

Title:

     

Managing Director

       

Portfolio Manager

 

16

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: SANKATY ADVISORS, LLC AS COLLATERAL MANAGER FOR CASTLE HILL II -
INGOTS, LTD., AS TERM LENDER

By:

     

/s/ Diane J. Exter

--------------------------------------------------------------------------------

Name:

     

Diane J. Exter

Title:

     

Managing Director

       

Portfolio Manager

 

17

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: SANKATY ADVISORS, LLC AS COLLATERAL MANAGER FOR CASTLE HILL III
CLO, Limited, as Term Lender

By:

     

/s/ Diane J. Exter

--------------------------------------------------------------------------------

Name:

     

Diane J. Exter

Title:

     

Managing Director

       

Portfolio Manager

 

18

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

 

Name of Lender: Centurion CDO II, Ltd.

By:

  American Express Asset Management Group, Inc. as Collateral Manager

By:

 

/s/ Leanne Stavrakis

--------------------------------------------------------------------------------

Name:

 

Leanne Stavrakis

Title:

 

Director - Operations

 

19

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

 

Name of Lender: Flagship CLO 2001-1

By:

 

Flagship Capital Mgt., Inc.

By:

 

/s/Colleen Connifer

--------------------------------------------------------------------------------

Name:

 

Colleen Connifer

Title:

 

Director

 

20

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

 

Name of Lender: Fleet National Bank

By:

 

/s/ James W. Ford

--------------------------------------------------------------------------------

Name:

 

James W. Ford

Title:

 

Managing Director

 

21

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

 

Name of Lender: SunAmerica Life Insurance Company

by:

     

AIG Global Investment Corp.

   

as Investment Advisor

By:

 

/s/ Julie Bothamley

--------------------------------------------------------------------------------

Name:

 

Julie Bothamley

Title:

 

Vice President

Name of Lender: Galaxy CLO 1999-1, Ltd.

By:

 

AIG Global Investment Corp.

       

As Collateral Manager

By:

 

/s/ Julie Bothamley

--------------------------------------------------------------------------------

Name:

     

Julie Bothamley

Title:

 

Vice President

 

22

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

 

Name of Lender: GENERAL ELECTRIC CAPITAL CORPORATION

By:

 

/s/ Brian P. Schwinn

--------------------------------------------------------------------------------

Name:

 

Brian P. Schwinn

Title:

 

Duly Authorized Signatory

 

23

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

 

Name of Lender: GMAC COMMERCIAL FINANCE LLC        

By:

 

/s/ David Grabosky

--------------------------------------------------------------------------------

       

Name:

 

David Grabosky

       

Title:

 

Vice President

 

24

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

 

Name of Lender: Sankaty Advisors, LLC as Collateral Manager For Great Point CLO
1999-1 LTD., as Term Lender

By:

 

/s/ Diane J. Exter

--------------------------------------------------------------------------------

Name:

 

Diane J. Exter

Title:

 

Managing Director

   

Portfolio Manager

 

25

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: HARBOUR TOWN FUNDING LLC

By:

 

/s/ Meredith J. Koslick

--------------------------------------------------------------------------------

Name:

 

Meredith J. Koslick

Title:

 

Assistant Vice President

 

26

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: HELLER FINANCIAL INC.

By:

 

/s/ Brian P. Schwinn

--------------------------------------------------------------------------------

Name:

 

Brian P. Schwinn

Title:

 

Duly Authorized Signatory

 

27

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: KZH CYPRESSTREE – I LLC

By:

 

/s/ Hi Hua

--------------------------------------------------------------------------------

Name:

 

Hi Hua

Title:

 

Authorized Agent

 

28

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: KZH Soleil LLC

By:

 

/s/ Hi Hua

--------------------------------------------------------------------------------

Name:

 

Hi Hua

Title:

 

Authorized Agent

 

29

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: KZH Soleil – 2 LLC

By:

 

/s/ Hi Hua

--------------------------------------------------------------------------------

Name:

 

Hi Hua

Title:

 

Authorized Agent

 

30

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: KZH Sterling LLC

By:

 

/s/ Hi Hua

--------------------------------------------------------------------------------

Name:

 

Hi Hua

Title:

 

Authorized Agent

 

31

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: Magnatite Asset Investors III LLC

By:

 

/s/ Mark J. Williams

--------------------------------------------------------------------------------

Name:

 

Mark J. Williams

Title:

 

Authorized Signatory

 

32

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: NATIONAL CITY BANK

By:

 

/s/ Tony J. Daher

--------------------------------------------------------------------------------

Name:

 

Tony J. Daher

Title:

 

Assist. Vice President

 

33

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: Nationwide Indemnity Company

By:

 

/s/ Thomas S. Leggett

--------------------------------------------------------------------------------

Name:

 

Thomas S. Leggett

Title:

 

Associate Vice President
Public Bonds

 

34

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SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: Nationwide Life and Annuity Insurance Company

By:

 

/s/ Thomas S. Leggett

--------------------------------------------------------------------------------

Name:

 

Thomas S. Leggett

Title:

 

Associate Vice President
Public Bonds

 

35

--------------------------------------------------------------------------------

SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: Nationwide Life Insurance Company

By:

 

/s/ Thomas S. Leggett

--------------------------------------------------------------------------------

Name:

 

Thomas S. Leggett

Title:

 

Associate Vice President
Public Bonds

 

36

--------------------------------------------------------------------------------

SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: Nationwide Mutual Fire Insurance Company

By:

 

/s/ Thomas S. Leggett

--------------------------------------------------------------------------------

Name:

 

Thomas S. Leggett

Title:

 

Associate Vice President
Public Bonds

 

37

--------------------------------------------------------------------------------

SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: NOVA CDO 2001, LTD.

By:

 

/s/ David Mahon

--------------------------------------------------------------------------------

Name:

 

David Mahon

Title:

 

Vice President

 

38

--------------------------------------------------------------------------------

SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: Sankaty Advisors, LLC as Collateral Manager For Race Point CLO,
Limited, as Term Lender

By:

 

/s/ Diane J. Exter

--------------------------------------------------------------------------------

Name:

 

Diane J. Exter

Title:

 

Managing Director
Portfolio Manager

 

39

--------------------------------------------------------------------------------

SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: Sankaty Advisors, LLC as Collateral Manager For Race Point II
CLO, Limited, as Term Lender

By:

 

/s/ Diane J. Exter

--------------------------------------------------------------------------------

Name:

 

Diane J. Exter

Title:

 

Managing Director
Portfolio Manager

 

40

--------------------------------------------------------------------------------

SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: SEABOARD CLO 2000 LTD.
by: Babson Capital Management LLC as Collateral Manager

By:

 

/s/ David P. Wells, CFA

--------------------------------------------------------------------------------

Name:

 

David P. Wells, CFA

Title:

 

Managing Director

 

41

--------------------------------------------------------------------------------

SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: Sequils-Centurion V, Ltd.
by: American Express Asset Management Group as Collateral Manager

By:

 

/s/ Leanne Stavrakis

--------------------------------------------------------------------------------

Name:

 

Leanne Stavrakis

Title:

 

Director - Operations

 

42

--------------------------------------------------------------------------------

SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: Toronto Dominion (New York), Inc.

By:

 

/s/ Gwen Zirkle

--------------------------------------------------------------------------------

Name:

 

Gwen Zirkle

Title:

 

Vice President

 

43

--------------------------------------------------------------------------------

SIGNATURE PAGE TO

AMENDMENT NO. 3, CONSENT

AND RELEASE DATED AS OF

AUGUST 18, 2004, TO THE COLLINS &

AIKMAN FLOORCOVERINGS, INC.

CREDIT AGREEMENT DATED AS OF

JANUARY 25, 2001, AS AMENDED

 

Name of Lender: Wachovia Bank National Association

By:

 

/s/ Mark S. Supple

--------------------------------------------------------------------------------

Name:

 

Mark S. Supple

Title:

 

Vice President

 

44

--------------------------------------------------------------------------------

Schedule I

 

SUBSIDIARY GUARANTORS

 

CAF Extrusion, Inc., a Delaware corporation

Monterey Color Systems, Inc., a California corporation