Document:

AMENDMENT TO LOAN AND SECURITY AGREEMENT

Exhibit 10.2 
[Execution] 
 
AMENDMENT NO. 1 TO 
LOAN AND SECURITY AGREEMENT

 
AMENDMENT NO. 1 TO LOAN AND SECURITY
AGREEMENT (“Amendment No. 1”) dated as of August 29, 2002 by and among Pillowtex Corporation, a Delaware corporation (“Parent”), PTEX, Inc., a Delaware corporation (“PTEX”), Fieldcrest Cannon, Inc., a Delaware
corporation (“Fieldcrest”), FC Online, Inc., formerly known as Manetta Home Fashions, Inc., a North Carolina corporation (“FC Online”), Beacon Manufacturing Company, a North Carolina corporation (“Beacon”), Pillowtex
Management Services Company, a Delaware business trust (“PT Management”), Opelika Industries, Inc., an Alabama corporation (“Opelika”), Encee, Inc., a Delaware corporation (“Encee”), FCC Canada, Inc., a Delaware
corporation (“FCC Canada”, and together with Parent, PTEX, Fieldcrest, FC Online, Beacon, PT Management, Opelika and Encee, each individually a “Borrower” and collectively, “Borrowers” as hereinafter further defined),
PTEX Holding Company, a Delaware corporation (“PTEX Holding”), The Leshner Corporation, an Ohio corporation (“Leshner”), Tennessee Woolen Mills, Inc., a Tennessee corporation (“Woolen Mills”), Fieldcrest Cannon
Financing, Inc., a Delaware corporation (“FC Financing”), Fieldcrest Cannon Licensing, Inc, a Delaware corporation (“FC Licensing”), FCI Corporate LLC, a Delaware limited liability company (“FCI Corporate”), Fieldcrest
Cannon Transportation, Inc., a Delaware corporation (“Transportation”), FCI Operations LLC, a Delaware limited liability company (“FCI Operations”), Pillowtex Canada Inc., an Ontario corporation (“PT Canada”, and
together with PTEX Holding, Leshner, Woolen Mills, FC Financing, FC Licensing, FCI Corporate, Transportation and FCI Operations, each individually a “Guarantor” and collectively, “Guarantors”), the financial institutions from
time to time parties to the Loan Agreement (as hereinafter defined) as lenders (each individually, a “Lender” and collectively, “Lenders”) and Congress Financial Corporation, a Delaware corporation, in its capacity as agent for
Lenders pursuant to the terms hereof (in such capacity, “Agent”). 
 
W I T N E S S E T H 
 
WHEREAS, Agent, Lenders, Borrowers and Guarantors have entered
into financing arrangements pursuant to which Agent and Lenders have made and may make loans and advances and provide other financial accommodations to Borrowers as set forth in the Loan and Security Agreement, dated as of May 24, 2002, by and among
Agent, Lenders, Borrowers and Guarantors (as the same now exists and may hereafter be further amended, modified, supplemented, extended, renewed, restated or replaced, the “Loan Agreement”) and the agreements, documents and instruments at
any time executed and/or delivered in connection therewith (collectively, together with the Loan Agreement, the “Financing Agreements”); 

 
WHEREAS,
Borrowers have requested that Agent (on behalf of Lenders) make available to Borrowers Letter of Credit Accommodations in the form of banker’s acceptances and Agent is willing to do so to the extent and subject to terms and conditions set forth
herein. 
 
NOW, THEREFORE, in consideration of the
mutual conditions and agreements and covenants set forth herein, and for other good and valuable consideration, the adequacy and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
 
Section 1. Definitions. 
 
1.1 Defined Terms. For purposes of this
Amendment No. 1, all terms used herein, including but not limited to, those terms used and/or defined herein or in the recitals hereto shall have the respective meanings assigned thereto in the Loan Agreement as amended by this Amendment No. 1 to
Loan and Security Agreement. 
 
1.2
Amendments to Definitions. All references to the term “Letter of Credit Accommodations” in the Loan Agreement and the other Financing Agreements and each such reference is hereby amended to mean, collectively, letters of credit
(and banker’s acceptances issued with respect to drafts presented under letters of credit) and merchandise purchase or other guaranties in each case which are from time to time either (a) issued or opened by Agent or any Lender for the account
of any Borrower or Guarantor or (b) with respect to which Agent or Lenders have agreed to indemnify the issuer or guaranteed to the issuer the performance by any Borrower or Guarantor of its obligations to such issuer; sometimes being referred to in
the Loan Agreement or such other Financing Agreements individually as a “Letter of Credit Accommodation”. The term “banker’s acceptance” as used herein and in the Loan Agreement and the other Financing Agreements shall refer
to a time draft that is an order written by the beneficiary of a letter of credit as the drawer of the time draft instructing the issuer of the letter of credit as the drawee to pay the amount specified in the time draft that has been accepted by a
bank. 
 
Section 2. Amendments to Loan Agreement.

 
2.1 Letter of Credit Accommodation
Fees. Section 2.2(b) of the Loan Agreement is hereby deleted in its entirety and replaced with the following: 
 
“(b) In addition to any charges, fees or expenses charged by any bank or issuer in connection with the Letter of
Credit Accommodations, Borrowers shall pay to Agent, for the benefit of Lenders, a letter of credit and acceptance fee at a rate equal to two and one-half (2 1/2%) percent per annum on the daily outstanding balance of the Letter of Credit
Accommodations for the immediately preceding month (or part thereof), payable in arrears as of the first day of each succeeding month, except that Agent may, and upon the written direction of Required Lenders shall, require Borrowers to pay
to Agent for the ratable benefit of Lenders such letter of credit and acceptance fee at a rate equal to four and one- 

 

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half (4 1/2%) percent per annum on the applicable daily outstanding balance for: (i) the period from and after the date of termination hereof
until Agent and Lenders have received full and final payment of all Obligations which are not contingent and cash collateral or letters of credit, as Agent may specify in the amounts and on the terms required under Section 13.1(a) hereof for
contingent Obligations (notwithstanding entry of a judgment against any Borrower) and (ii) the period from and after the date of the occurrence of an Event of Default for so long as such Event of Default is continuing as determined by Agent in good
faith. Such letter of credit and acceptance fees shall be calculated on the basis of a three hundred sixty (360) day year and actual days elapsed and the obligation of Borrowers to pay such fees shall survive the termination of this Agreement.”

 
2.2 Letter of Credit Accommodation
Fees. Section 2.2(e) of the Loan Agreement is hereby amended by adding the following to the end thereto: 
 
“, provided, that, the amount of all outstanding Letter of Credit Accommodations consisting of
banker’s acceptances and all other commitments and obligations made or incurred in connection therewith shall not at any time exceed $5,000,000.” 
 
Section 3. Provisions of General Application 
 
3.1 Effect of this Amendment. Except as modified pursuant hereto, no other changes or
modifications to the Financing Agreements are intended or implied and in all other respects the Financing Agreements are hereby specifically ratified, restated and confirmed by all parties hereto as of the effective date hereof. To the extent of
conflict between the terms of this Amendment No. 1 and the other Financing Agreements, the terms of this Amendment No. 1 shall control. The Loan Agreement and this Amendment No. 1 shall be read and construed as one agreement. 
 
3.2 Governing Law. The rights and obligations
hereunder of each of the parties hereto shall be governed by and interpreted and determined in accordance with the laws of the State of New York, but excluding any principles of conflicts of law or other rule of law that would result in the
application of the law of any jurisdiction other than the laws of the State of New York. 
 
3.3 Binding Effect. This Amendment No. 1 shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns. 
 
3.4 Counterparts. This Amendment No. 1 may be
executed in any number of counterparts, but all of such counterparts shall together constitute but one and the same agreement. In making proof of this Amendment, it shall not be necessary to produce or account for more than one counterpart thereof
signed by each of the parties hereto. 
 

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IN WITNESS
WHEREOF, the parties hereto have caused this Amendment No. 1 to be duly executed and delivered by their authorized officers as of the date and year first above written. 
 

	 CONGRESS FINANCIAL CORPORATION,
 as Agent and as Lender

	
	 By:
	 	  

	 Title:
	 	  

	
	 PILLOWTEX CORPORATION
 PTEX, INC.
 FC ONLINE, INC.
 BEACON MANUFACTURING COMPANY
 PILLOWTEX MANAGEMENT SERVICES
             COMPANY
 FIELDCREST CANNON, INC.
 OPELIKA INDUSTRIES, INC.
 ENCEE, INC.

	
	 By:
	 	 
	
	 Title:
	 	  

 
 

	 GUARANTORS
  
 PTEX HOLDING COMPANY
 FIELDCREST CANNON
FINANCING, INC.

	
	 By:
	 	  

	
	 Title:
	 	  

	 THE LESHNER CORPORATION
 FIELDCREST CANNON LICENSING, INC.
 FCI CORPORATE LLC

 

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	 FIELDCREST CANNON TRANSPORTATION, INC.
 FCI OPERATIONS LLC
 PILLOWTEX CANADA INC.
 FCC CANADA, INC.

	
	 By:
	 	  

	
	 Title:
	 	  

 

5AMENDED AND RESTATED INDEMNIFICATION AGREEMENT

 
Exhibit 10.10

 
AMENDED AND RESTATED INDEMNIFICATION
AGREEMENT 
 
This Amended and Restated
Indemnification Agreement (this “Agreement”), dated as of             , 200    , is made and entered into by and among Pillowtex
Corporation, a Delaware corporation (the “Company”), and its subsidiaries listed on the signature page hereof (collectively with the Company, the “Indemnitors”), and
                     (the “Indemnitee” and collectively with the Indemnitors, the “Parties”). 
 
RECITALS 
 
A. The Indemnitee is a director, manager and/or officer of one
or more of the Indemnitors and is serving as a director, manager and/or officer of such Indemnitor or Indemnitors at the request of the other Indemnitors. 
 
B. The Indemnitors’ respective certificates of incorporation and bylaws or limited liability company agreements (the
“Constitutive Documents”) provide that the Indemnitors will indemnify their directors, managers and officers to the fullest extent permitted by law and will advance expenses in connection therewith, and the Indemnitee’s
willingness to serve as a director, manager and/or officer of the Indemnitors is based in part on Indemnitee’s reliance on such provisions. 
 
C. On May 24, 2002, the Company and the Indemnitee entered into an Indemnification Agreement providing for the indemnification of and the
advancement of expenses to the Indemnitee and, to the extent that insurance is maintained, for the continued coverage of the Indemnitee under the Indemnitors’ directors’ and officers’ liability insurance policies. 
 
D. As a condition to the Indemnitee’s continued services
to the Indemnitors, the Indemnitee has requested that his existing Indemnification Agreement be amended and restated as provided herein. 
 
AGREEMENTS 
 
NOW THERFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 
 

	 	1.	 	Certain Definitions. 

 
“Claim” means, with respect to the Indemnitee, any threatened, pending or completed claim, demand, action, suit or
proceeding (whether civil, criminal, administrative, investigative or other) against or involving the Indemnitee (or in which the Indemnitee may be involved or is threatened to be involved) as a party or otherwise. 
 
“Loss” means any loss, claims, damages,
liabilities, costs and expenses (including attorneys’ fees and costs), judgments, fines, penalties, settlements, costs of attachment or similar bonds and other amounts (including, without limitation, all interest, 

 

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assessments, and other charges paid or payable in connection with or in respect of any of the foregoing). 
 
2. Indemnification. From and after the date hereof,
each Indemnitor will, to the fullest extent permitted by law as in effect on the date hereof or as amended from time to time hereafter to increase the scope of permitted indemnification, indemnify, defend and hold harmless the Indemnitee from and
against any and all Losses arising from any and all Claims relating to, resulting from or arising out of (a) any act or failure to act by Indemnitee in his capacity as a manager, director, officer, employee or agent of Pillowtex Corporation,
a Texas corporation (“PTX”), or any Indemnitor, or any of their respective subsidiaries or affiliates, or any other entity as to which the Indemnitee is or was serving at the request of PTX or any of the Indemnitors as a director,
officer, employee, member, manager, trustee or agent, or (b) any business, transaction or other activity of any entity referred to in clause (a) of this Section 2. 
 
3. Indemnification Procedures. 
 
(a) Whenever the Indemnitee has actual knowledge of the reasonable likelihood of the assertion of a Claim,
the Indemnitee will notify the Indemnitors in writing of the Claim with reasonable promptness after the Indemnitee has such knowledge relating to such Claim. The notice will specify all material facts known to the Indemnitee that may give rise to
such Claim and the monetary amount or an estimate of the monetary amount involved if the Indemnitee has knowledge of such amount or a reasonable basis for making such an estimate. The failure of the Indemnitee to notify the Indemnitors of a Claim
will not relieve the Indemnitors of their indemnification obligations under this Agreement except, and only to the extent that, the Indemnitors did not otherwise learn of the Claim and are materially injured as a result of such failure.

 
(b) The Indemnitors will, at their expense,
undertake the defense of a Claim with attorneys of their own choosing reasonably satisfactory to the Indemnitee. The Indemnitee may participate in such defense with counsel of his choosing at his expense or, in the event that such counsel to the
Indemnitee reasonably determines that there are defenses available to the Indemnitee that may not by available to the Indemnitors, at the expense of the Indemnitors. In the event that the Indemnitors do not undertake the defense of the Claim within
a reasonable time after the Indemnitee has notified the Indemnitors of the Claim, or in the event that the Indemnitee in good faith determines that the defense of the Claim by the Indemnitors is inadequate or may conflict with the interests of the
Indemnitee, the Indemnitee may, at the expense of the Indemnitors and after giving notice to the Indemnitors of such action, undertake the defense of the Claim. The Indemnitee will cooperate with the Indemnitors, so long as the Indemnitors are
conducting the defense of the Claim, in the preparation for and the prosecution of the defense of such Claim, including making available evidence within the control of the Indemnitee, in each case as reasonably needed for such defense and at cost,
which cost, to the extent reasonably incurred, will be paid by the Indemnitors. 
 
(c) In the defense of any Claim, the Indemnitors will not, except with the prior written consent of the Indemnitee, consent to entry of any judgment or enter into 

 

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any settlement that includes any injunctive or other non-monetary relief against the Indemnitee, or that does not include as an unconditional
term thereof the giving by the person or persons asserting such Claim to such Indemnitee of a release from all liability with respect to such Claim. 
 
(d) If requested by the Indemnitee, the Indemnitors will, to the fullest extent permitted by law as in effect on the date hereof or as
amended from time to time hereafter to increase the scope of permitted indemnification, advance, within three business days of such request, any and all costs and expenses (including attorneys’ and experts’ fees and costs) paid or incurred
by the Indemnitee in investigating, defending or participating in the defense of any Claim in advance of the final disposition of such Claim, if the Indemnitors receive an undertaking by or on behalf of the Indemnitee to repay amounts so advanced if
it is ultimately determined by final judicial decision from which there is no further right to appeal that the Indemnitee is not entitled to be indemnified by the Indemnitors under this Agreement or otherwise. 
 
(e) Without limiting the generality or effect of the
foregoing, the Indemnitors will, to the fullest extent permitted by law as in effect on the date hereof or as amended from time to time hereafter to increase the scope of permitted indemnification, indemnify the Indemnitee against and, if requested
by the Indemnitee, will advance to the Indemnitee, within three business days of such request, any and all costs and expenses (including attorneys’ and experts’ fees and costs) paid or incurred by the Indemnitee in connection with any
Claim asserted or brought by the Indemnitee for (i) indemnification or advance payment of costs and expenses by any of the Indemnitors under this Agreement, any other agreement or any provisions of the Constitutive Documents now or hereafter
in effect or (ii) recovery under any directors’ and officers’ liability insurance policies maintained by the Indemnitors. 
 
(f) Pursuant to Section 6.2 of the By-Laws of the Company, the procedures to be followed with respect to providing indemnification to the
Indemnitee under the terms of this Agreement set forth herein shall supercede the procedures set forth in Article VI of such By-Laws. 
 

	 	4.	 	Partial Indemnification. 

 
(a) If the Indemnitee is entitled under any provision of this Agreement to be indemnified by the Indemnitors for some or a portion of any
Loss but not for all of the total amount of such Loss, the Indemnitors will nevertheless indemnify the Indemnitee for the portion of such Loss for which the Indemnitee is entitled to be indemnified. 
 
(b) Notwithstanding any other provision of this Agreement, to
the extent that the Indemnitee has been successful on the merits or otherwise in defending any or all Claims relating in whole or in part to a Loss or in defending any issue or matter therein (including, without limitation, dismissal without
prejudice), the Indemnitee will be indemnified against all costs and expenses (including attorneys’ and experts’ fees and costs) paid or incurred in connection therewith. 
 

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5.
Presumptions. In connection with any determination as to whether the Indemnitee is entitled to be indemnified hereunder, there will be a presumption that the Indemnitee is so entitled, which presumption the Indemnitors may overcome only by
their adducing clear and convincing evidence to the contrary. For purposes of this Agreement, the termination of any Claim by judgment, order, settlement (whether with or without court approval), conviction or upon a plea of nolo contendere
or its equivalent, will not create a presumption that the Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court has determined that indemnification is not permitted by applicable law. 
 
6. Non-Exclusivity. The rights of the Indemnitee
hereunder will be in addition to any other rights the Indemnitee may have under the Constitutive Documents or the laws of the Indemnitors’ respective jurisdictions of formation, any other contract or otherwise (collectively, “Other
Indemnity Provisions”); provided, however, that (a) to the extent that the Indemnitee otherwise would have any greater right to indemnification under any Other Indemnity Provision, the Indemnitee will be deemed to have
such greater right hereunder and (b) to the extent that any change is made to any Other Indemnity Provision that permits any greater right to indemnification than that provided under this Agreement as of the date hereof, the Indemnitee will
be deemed to have such greater right hereunder. The Indemnitors will not adopt any amendment to their respective Constitutive Documents the effect of which would be to deny, diminish or encumber the Indemnitee’s right to indemnification under
the Constitutive Documents or any Other Indemnity Provisions. 
 
7. Liability Insurance and Funding. To the extent that the Indemnitors maintain an insurance policy or policies providing directors’ and officers’ liability insurance, the Indemnitee will be covered by such policy or
policies, in accordance with its or their terms, to the maximum extent of the coverage available for any director or officer of the Indemnitors. The Indemnitors may, but will not be required to, create a trust fund, grant a security interest or use
other means (including, without limitation, a letter of credit) to ensure the payment of such amounts as may be necessary to satisfy its obligations to indemnify and advance expenses pursuant to this Agreement. 
 
8. Subrogation. In the event of payment under this
Agreement, the Indemnitors will be subrogated to the extent of such payment to all of the related rights of recovery of the Indemnitee against other persons (other than the Indemnitee’s successors). The Indemnitee will execute all papers
reasonably required to evidence such rights, provided that the Indemnitors will reimburse or, at the option of the Indemnitee, advance all of the Indemnitee’s reasonable costs and expenses (including attorneys’ fees and costs)
related thereto. 
 
9. No Duplication of
Payments. The Indemnitors will not be liable under this Agreement to make any payment in connection with any Loss to the extent that the Indemnitee has otherwise actually received payment (net of all costs and expenses incurred in connection
therewith), under any insurance policy, the Constitutive Documents, Other Indemnity Provisions or otherwise, of the amounts otherwise indemnifiable hereunder. 
 

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	 	10.	 	Successors and Binding Agreement. 

 
(a) The Indemnitors will require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or
otherwise) to all or substantially all of the business or assets of the Indemnitors, by agreement in form and substance satisfactory to the Indemnitee and his counsel, expressly to assume and agree to perform this Agreement in the same manner and to
the same extent that the Indemnitors would be required to perform if no such succession had taken place. This Agreement will be binding upon and inure to the benefit of the Indemnitors and any successor to the Indemnitors, including, without
limitation, any person acquiring directly or indirectly all or substantially all of the business or assets of the Indemnitors, whether by purchase, merger, consolidation, reorganization or otherwise (and such successor will thereafter be deemed the
“Indemnitors” for purposes of this Agreement), but will not otherwise be assignable, transferable or delegatable by the Indemnitors. 
 
(b) This Agreement will inure to the benefit of and be enforceable by the Indemnitee’s personal or legal representatives, executors,
administrators, successors, heirs, distributes, delegates or other successors. 
 
(c) This Agreement is personal in nature and the Parties will not, without the consent of the other Parties, assign, transfer or delegate this Agreement or any rights or obligations hereunder except as
expressly provided in Sections 10(a) and 10(b). Without limiting the generality or effect of the foregoing, the Indemnitee’s right to receive payments hereunder will not be assignable, transferable or delegatable, whether by pledge, creation of
a security interest or otherwise, other than by a transfer by the Indemnitee’s will or by the laws of descent and distribution, and, in the event of any attempted assignment, transfer or delegation contrary to this Section 10(c), the
Indemnitors will have no liability to pay any amount so attempted to be assigned, transferred or delegated. 
 
11. Notices. Any notice or other communication required or permitted to be given or made under this Agreement will be in writing
and will be deemed to have been duly given and effective (a) on the date of delivery if delivered personally or (b) when sent if sent by prepaid telegram, mailed first-class, postage prepaid, registered or certified mail, or facsimile
transmission, to the following addresses (or to such other addresses as will be given in writing by any of the Parties to the others in accordance herewith): 
 

	 If to Indemnitors, to:
	  	 Pillowtex Corporation
 One Lake Circle Drive
 Kannapolis, NC 28081
 Facsimile: (704) 939-2597
 Attention: Office of the General
Counsel

 

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	 with a copy to:
	  	 Debevoise & Plimpton
 919 Third Avenue
 New York, NY 10022
 Facsimile: (212) 909-6836
 Attention: Richard F. Hahn

 
If to
the Indemnitee, to: 
 
12. Governing Law.
The validity, interpretation, construction and performance of this Agreement will be governed by and construed in accordance with the substantive laws of the State of Delaware, without giving effect to the principles of conflict of laws of such
State. The Parties hereby irrevocably submit to the jurisdiction of the courts of the State of Delaware and the Federal courts of the United States of America, in each case located in the State of Delaware, solely in respect of the interpretation
and enforcement of the provisions of this Agreement, and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof, that it is not subject thereto or that such action, suit or
proceeding may not be brought or is not maintainable in such courts or that the venue thereof may not be appropriate or that this Agreement may not be enforced in or by such courts, and the Parties irrevocably agree that all claims with respect to
such action or proceeding will be heard and determined in such a Delaware State or Federal court. The Parties hereby consent to and grant any such court jurisdiction over the person of such Parties and over the subject matter of any such dispute and
agree that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section 11 or in such other manner as may be permitted by law, will be valid and sufficient service thereof. 
 
13. Waiver of Jury Trial. Each Party acknowledges and
agrees that any controversy that may arise under this Agreement is likely to involve complicated and difficult issues, and therefore it hereby irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any
litigation directly or indirectly arising out of or relating to this Agreement, or the breach, termination or validity of this Agreement, or the transactions contemplated by this Agreement. Each Party certifies and acknowledges that (a) no
representative, agent or attorney of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver, (b) it understands and has considered the
implications of this waiver, (c) it makes this waiver voluntarily, and (d) it has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications contained in this Section 13. 
 
14. Validity. If any provision of this Agreement or the
application of any provision hereof to any person or circumstance is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement and the application of such provision to any other person or circumstance will not be affected,
and the provision so held to be invalid, unenforceable or otherwise illegal will be reformed to the extent (but only to the extent) 

 

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necessary to make it enforceable, valid and legal. Furthermore, if the obligations of any or more of the Indemnitors under this Agreement are
held to be invalid, unenforceable or otherwise illegal, this Agreement will remain binding on each of the other Indemnitors. 
 
15. Legal Fees and Expenses. It is the intent of the Indemnitors that the Indemnitee not be required to incur legal fees or other
costs and expenses associated with the interpretation, enforcement or defense of the Indemnitee’s rights under this Agreement by litigation or otherwise because such fees, costs and expenses would substantially detract from the benefits
intended to be extended to the Indemnitee hereunder. Accordingly, without limiting the generality or effect of any other provision hereof, if it should appear to the Indemnitee that the Indemnitors have failed to comply with any of its obligations
under this Agreement or in the event that the Indemnitors or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to
recover from, the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder, the Indemnitors irrevocably authorize the Indemnitee from time to time to retain counsel of the Indemnitee’s choice, at the expense of
the Indemnitors as hereafter provided, to advise and represent the Indemnitee in connection with any such interpretation, enforcement or defense (including, without limitation, the initiation or defense of any litigation or other legal action),
whether by or against the Indemnitors or any director, officer, stockholder or other person affiliated with the Indemnitors, in any jurisdiction. Notwithstanding any existing or prior attorney-client relationship between the Indemnitors and such
counsel, the Indemnitors irrevocably consent to the Indemnitee’s entering into an attorney-client relationship with such counsel and, in connection therewith, the Parties agree that a confidential relationship will exist between the Indemnitee
and such counsel. Without respect to whether the Indemnitee prevails, in whole or in part, in connection with any of the foregoing, the Indemnitors will pay and be solely financially responsible for any and all attorneys’ and related fees and
expenses incurred by the Indemnitee in connection with any of the foregoing. 
 
16. Miscellaneous. No provisions of this Agreement may be waived, modified or discharged unless such waiver, modification or discharge is agreed to in a writing signed by each Party. No waiver
by any Party at any time of any breach by any other Party or compliance with any condition or provision of this Agreement to be performed by such other Party will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time. The rights and remedies herein provided are cumulative and are not exclusive of any rights or remedies that any Party may otherwise have at law or in equity or otherwise. No agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof have been made by any Party which are not set forth expressly in this Agreement. References to Sections are references to Sections of this Agreement. The headings contained in
this Agreement are for purposes of convenience only and shall not affect the meaning or interpretation of this Agreement. 
 
17. Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original but all of
which together will constitute one and the same agreement. 
 

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IN WITNESS
WHEREOF, the Parties have duly executed this Agreement as of the date first above written. 
 

	 PILLOWTEX CORPORATION

	
	 By:
	 	  

	 Name:
 Title:
	 	 
	
	 BEACON MANUFACTURING COMPANY
 ENCEE, INC.
 FC ONLINE, INC.
 FIELDCREST CANNON, INC.
 FIELDCREST CANNON LICENSING, INC.
 FIELDCREST CANNON TRANSPORTATION, INC.
 OPELIKA INDUSTRIES, INC.
 PILLOWTEX MANAGEMENT SERVICES COMPANY
 PTEX, INC.

	
	 By:
	 	  

	 Name:
 Title:
	 	 
	
	 INDEMNITEE
  
  

	

 

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