Document:

exv10w3

 

EXHIBIT 10.3

REAFFIRMATION OF GUARANTY

June 15, 2007

General Electric Capital Corporation, as Agent

500 West Monroe

Chicago, Illinois 60661

Attn: Wilsons Leather Account Manager

     Please refer to (1) Second Amendment to the Fifth Amended and Restated Credit Agreement dated
as of the date hereof (the “Amendment”), the Fifth Amended and Restated Credit Agreement
dated as of December 29, 2006, (as amended, restated, supplemented or otherwise modified from time
to time, the “Credit Agreement”), amending and restating the Fourth Amended and Restated
Credit Agreement dated as of April 23, 2002, amending and restating that certain Third Amended and
Restated Credit Agreement dated as of June 19, 2001, amending and restating that certain Second
Amended and Restated Credit Agreement dated as of October 31, 2000, amending and restating that
certain Amended and Restated Credit Agreement dated as of May 24, 1999, amending and restating that
certain Credit Agreement dated as of May 25, 1996 among Wilsons Leather Holdings Inc.
(“Borrower”), the Loan Parties (as defined therein), General Electric Capital Corporation,
individually and as agent (“Agent”) and the Lenders (as defined therein), (2) the Parent
Guaranty dated as of May 25, 1996 (as amended, the “Parent Guaranty”) by certain of the
undersigned in favor of Agent on behalf of the Lenders under the Credit Agreement, (3) the Store
Guarantors’ Guaranty (as amended, the “Store Guarantors’ Guaranty”) dated as of May 25,
1996 by certain of the undersigned in favor of Agent on behalf of the Lenders under the Credit
Agreement, (4) the Joinder Agreement dated July 31, 1997 between Wilsons International, Inc. and
Agent, (5) the Joinder Agreement dated May 24, 1999 between certain of the undersigned and Agent,
(6) the Joinder Agreement dated October 10, 2000 between certain of the undersigned and Agent, (7)
the Joinder Agreement dated October 31, 2000 between certain of the undersigned and Agent, and (8)
the Joinder Agreement dated April 13, 2001 between certain of the undersigned and Agent.

     Pursuant to the Amendment, Lenders have agreed, inter alia, to (i) amend certain provisions of
the Credit Agreement, and (ii) continue to make Loans and to incur Letter of Credit Obligations and
Eligible Trade L/C Obligations on behalf of Borrower. All capitalized terms used but not otherwise
defined herein have the meaning given to them in the Credit Agreement or in Schedule A
thereto.

 

 

     We hereby (i) acknowledge receipt of the Amendment, (ii) acknowledge and reaffirm all of our
obligations and undertakings under the Parent Guaranty and the Store Guarantors’ Guaranty (as
applicable) (collectively, the “Guaranties”), and (iii) acknowledge and agree that
subsequent to, and taking into account the Amendment, the Guaranties are and shall remain in full
force and effect in accordance with the terms thereof.

	 	 	 	 	 
	 	PARENTS:

 	 
	 	Wilsons The Leather Experts Inc.
 	 
	 	Wilsons Center, Inc. 	 
	 	Rosedale Wilsons, Inc.

River Hills Wilsons, Inc. 	 

	 	 	 	 	 
	 	 	 
	 	  By:  	     /s/ Stacy A. Kruse
 	 
	 	 	Title: Chief Financial Officer and Treasurer 	 
	 	 	The authorized officer of each of the foregoing corporations 	 
	 

[Signature Page to Reaffirmation of Guaranty]

 

 

			
	 	 	STORE GUARANTORS:

	 	 	Bermans The Leather Experts Inc. 

Florida Luggage Corp. 

Wilsons Leather Direct Inc. 

Wilsons International Inc. 

Wilsons Leather of Airports Inc. 

Wilsons Leather of Alabama Inc. 

Wilsons Leather of Arkansas Inc. 

Wilsons Leather of Connecticut Inc. 

Wilsons Leather of Delaware Inc. 

Wilsons Leather of Florida Inc. 

Wilsons Leather of Georgia Inc. 

Wilsons Leather of Indiana Inc. 

Wilsons Leather of Iowa Inc. 

Wilsons Leather of Louisiana Inc. 

Wilsons Leather of Maryland Inc. 

Wilsons Leather of Massachusetts Inc. 

Wilsons Leather of Michigan Inc. 

Wilsons Leather of Mississippi Inc. 

Wilsons Leather of Missouri Inc. 

Wilsons Leather of New Jersey Inc. 

Wilsons Leather of New York Inc. 

Wilsons Leather of North Carolina Inc. 

Wilsons Leather of Ohio Inc. 

Wilsons Leather of Pennsylvania Inc. 

Wilsons Leather of Rhode Island Inc. 

Wilsons Leather of South Carolina Inc. 

Wilsons Leather of Tennessee Inc. 

Wilsons Leather of Texas Inc. 

Wilsons Leather of Vermont Inc. 

Wilsons Leather of Virginia Inc. 

Wilsons Leather of West Virginia Inc. 

Wilsons Leather of Wisconsin Inc. 

WWT, Inc.

	 	 	 	 	 
	 	 	 
	 	By:  	     /s/ Stacy A. Kruse
 	 
	 	 	Name:  	Chief Financial Officer and Treasurer 	 
	 	 	The authorized officer of each of the foregoing corporations 	 
	 

[Signature Page to Reaffirmation of Guaranty]Ex-10.1

 

Exhibit 10.1

	 	 	 
	

	 	5200 Maryland Way

Suite 400

Brentwood, TN 37027

Tel: 800-890-7271

Fax: 615-373-9932

June 12, 2007

Mr. Jim Reichmann

1322 Garrick Way

Marietta, Georgia 30068

Dear Jim:

     I am excited to offer you the position of Senior Vice President, Sales and Marketing of
American HomePatient, Inc. (the “Company”). The following are some important details about the
position.

     JOB DESCRIPTION. You will be responsible for the sales and marketing aspects of the Company’s
operations and shall have the title Senior Vice President, Sales and Marketing. You will perform
the duties and responsibilities assigned to you from time to time in accordance with the policies and
objectives established by the Board of Directors and Chief Executive Officer and Chief Operating
Officer of the Company. You will report directly to the Company’s Chief Operating Officer. You
will be expected to devote your full time, attention and skill to your duties herein and to use
your best efforts to attain or exceed the Company’s objective goals for profit, quality, stability
and growth. You will at all times while employed by the Company comply fully with the Company’s
“Guidelines of Company Policies and Conduct” and any other compliance programs of the Company, as
such programs may be amended from time to time, and you acknowledge that your obligations under
such programs as an employee are contractual in nature.

     SALARY AND BONUS. While you are employed by the Company, you will be paid a base salary of Two
Hundred Thousand Dollars and No/100 Dollars ($200,000) per year, payable in accordance with the
Company’s standard payroll practices. You will be entitled to receive incentive compensation of up
to forty percent (40%) of your annual base salary under such incentive programs as may from time to
time be provided to employees of the Company of similar rank, which programs may be created,
changed or terminated at any time at the Company’s sole discretion. The Company’s Board of
Directors will conduct an annual merit review in connection with the review of all similar ranking
officers of the Company regarding your performance to consider increasing your base salary. You
also will be entitled to a monthly car allowance of $600 during your employment.

 

 

     STOCK OPTIONS. We will recommend that the Board of Directors will grant to you options to
purchase 75,000 (35,000 upon date of employment and an additional 40,000 upon Board of Directors
approval) shares of the Company’s common stock. The options will be granted with an exercise price
equal to the fair market value of the Company’s common stock on the date that the options are
granted. Twenty-five percent of the options will vest immediately following their grant, and an
additional twenty-five percent of the options will vest on each of the first through the third
anniversaries of the date that your employment with the Company commences.

     BENEFITS. During your employment with the Company, you will be entitled to such medical,
dental, disability and life insurance benefits, participation in any profit-sharing plan or similar
plans of the Company, and such other employee benefits as are provided to employees of the Company
of similar rank from time to time.

     EXPENSE REIMBURSEMENT. The Company recognizes that your primary residence is in Atlanta,
Georgia, and the Company acknowledges that you plan to continue residing in Atlanta while you are
employed by the Company. The Company will expect that you will work in Brentwood, Tennessee during
the regular work week As an inducement for you to accept this offer of employment, the Company will
reimburse you for all reasonable and actual travel and other expenses incurred by you in traveling
to and from Atlanta and Brentwood. The Company will also cover your reasonable and actual lodging
and food related expenses that you incur while working in Nashville. Reimbursement for business
travel expenses will be subject to compliance with the Company’s reimbursement policies as
established from time to time.

     NO FIXED EMPLOYMENT TERM. You acknowledge and agree that this letter agreement does not
entitle you to employment for any specific term and that your employment with the Company is
“at-will,” meaning that you may be terminated with or without cause at anytime.

     CONFIDENTIAL INFORMATION. In consideration of the covenants of the Company set forth in this
letter, you agree and acknowledge that you will have access to or become aware of certain
confidential, restricted and/or proprietary information concerning operation by the Company and its
affiliates of their home health care businesses (collectively the “Business”). By signing this
letter, you undertake and agree that you will have a duty to the Company and its affiliates to
protect such information from use or disclosure. For the purposes of this paragraph, the following
definitions will apply:

	 	i.	 	     “Trade Secret” as related to the Business, will mean any specialized
technical information or data relating to (a) procurement of medical equipment and
other inventory for resale; (b) marketing strategy or plans of the Company or its
affiliates; (c) proprietary computer software; and (d) terms of contracts with
suppliers, employees and principal customers of the Company or its affiliates which
are not generally known to the competitors of the Company.
	 
	 	ii.	 	     “Confidential Information,” as related to the Business, will mean any
data or information, other than Trade Secrets, which is material to the Company or
its affiliates and not generally known by the public. Confidential Information will
in-

 

 

	 	 	 	clude, without limitation, any information pertaining to the Business
Opportunities (as hereinafter defined) of the Company or its affiliates, the details
of this letter, and the business plans, financial statements and projections of the
Company or its affiliates.
	 
	 	iii.	 	     “Business Opportunity” will mean any information or plans of the Company
or its affiliates concerning the purchase of or investment in any retail outlets,
stores, distribution centers or similar retail facilities in the field of home
health care, or the availability of any such outlets for purchase or investment by
the Company or its affiliates, together with all related information, concerning the
specifics of any contemplated purchase or investment (including price, terms and the
identity of such outlet), regardless of whether the Company or its affiliates have
entered any agreement, made any commitment, or issued any bid or offer to such
outlet or other facility.

     You agree that you will not, without the prior written consent of the Company, use or
disclose, or negligently permit any unauthorized person who is not an employee of the Company to
use, disclose, or gain access to, any Trade Secrets or Confidential Information.

     You will, with reasonable notice during and after your employment by the Company, furnish
information as may be in your possession and cooperate with the Company or its affiliates as may
reasonably be requested in connection with any claims or legal actions in which you are or may
become a party. The Company will reimburse you for any reasonable out-of-pocket expenses you incur
in order to satisfy her obligations under this clause paragraph.

     GOVERNING LAW. This letter will be interpreted under, subject to and governed by the
substantive laws of the State of Tennessee, without giving effect to provisions thereof regarding
conflict of laws, and all questions concerning its validity, construction, and administration will
be determined in accordance thereby.

     COUNTERPARTS. This letter may be executed simultaneously in any number of counterparts, each
of which will be deemed an original but all of which will together constitute one and same
instrument.

     MODIFICATION. This letter may not be modified or amended except in writing signed by the
parties. No term or condition of this letter will be deemed to have been waived except in writing by the
party charged with waiver. A waiver will operate only as to the specific term or condition waived
and will not constitute a waiver for the future or act on anything other than that which is
specifically waived.

 

 

     If the terms set forth above are acceptable to you, please sign the duplicate copy of this
letter at the bottom, to indicate your receipt and acceptance of the terms and conditions of this
offer of employment letter. We expect that your start date will be June 18, 2007. We look forward
to you joining us.

	 	 	 	 	 
	 	Sincerely,

American HomePatient, Inc.	 

	 	 	 	 	 
	 	By:  	                  /s/ Frank Powers
 	 
	 	 	Frank Powers, 	 
	 	 	Executive VP & Chief Operating Officer 	 
	 

I acknowledge receipt and acceptance of the above offer of employment.

	 	 	 	 	 	 	 	 	 
	     /s/ Jim Reichmann

	 	 	 	Date:
	 	6/18/07
	 	 
	 

	 	 	 	 	 	 	 	 
	Jim Reichmann

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