Document:

exhibit10-1.htm

Exhibit 10.1

 

Execution Version

 

 

First Amendment

 

to

 

Fourth Amended and Restated Credit Agreement

 

Among

 

Linn Energy, LLC

as Borrower,

 

BNP Paribas,

as Administrative Agent,

 

and

 

The Lenders Signatory Hereto

 

Effective as of May 15, 2009

 

Houston 4003896v.2

  

  

  

First Amendment to fourth Amended and Restated Credit Agreement

 

This First Amendment to fourth Amended and Restated Credit Agreement (this “First Amendment”) executed effective as of May 15, 2009 (the “First
Amendment Effective Date”) is among Linn Energy, LLC, a limited liability company formed under the laws of the State of Delaware (the “Borrower”); each of the undersigned guarantors (the “Guarantors”, and together with the Borrower, the “Obligors”);
each of the Lenders that is a signatory hereto; and BNP Paribas, as administrative agent for the Lenders (in such capacity, together with its successors, the “Administrative Agent”).

 

Recitals

 

A.           The Borrower, the Administrative Agent and the Lenders are parties to that certain Fourth Amended and Restated Credit Agreement dated as of April 28, 2009 (the “Credit Agreement”), pursuant to
which the Lenders have made certain credit available to and on behalf of the Borrower.

 

B.           The Borrower has requested and the Administrative Agent and the Lenders have agreed to amend certain provisions of the Credit Agreement.

 

C.           NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Section 1.           Defined Terms.  Each capitalized term which is defined in the Credit Agreement, but which is not defined in this First Amendment, shall have the meaning ascribed such term in the Credit
Agreement.  Unless otherwise indicated, all section references in this First Amendment refer to the Credit Agreement.

 

Section 2.           Amendments to Credit Agreement.

 

2.1           Definitions.  Section 1.02 is hereby amended by adding or amending and restating the following definitions:

 

“‘Agreement’ means this Fourth Amended and Restated Credit Agreement, as amended by that certain First Amendment to Fourth Amended and Restated Credit Agreement, dated as of May 15, and as the same may from time to time be further amended, modified, supplemented
or restated.”

 

2.2           Section 9.18.  Section 9.18 is hereby amended and restated in its entirety to read as follows:

 

“Section 9.18    Swap Agreements.  Neither the Borrower nor any of its Subsidiaries will enter into any Swap Agreements with any Person other than (a) Swap Agreements in respect of commodities (i) with an Approved Counterparty, (ii) the
notional volumes for which (when aggregated with other commodity Swap Agreements then in effect other than basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date such

Houston 4003896v.2 

  

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Swap Agreement is executed, 85% of the reasonably anticipated projected production from Proved Properties for each month during the period during which such Swap Agreement is in effect for each of crude oil and natural gas, calculated separately, for the remainder of the calendar year plus the next two full calendar years succeeding the
execution of such Swap Agreement and 70% of the reasonably anticipated projected production from Proved Properties for each month during the period during which such Swap Agreement is in effect for each of crude oil and natural gas, calculated separately, for each month thereafter, and (iii) the notional volumes for which do not exceed the current net monthly production (regardless of projected production levels) at the time such Swap Agreement is executed, calculated separately for each of crude oil and natural
gas, and (b) Swap Agreements in respect of interest rates with an Approved Counterparty, which effectively convert interest rates from floating to fixed, the notional amounts of which (when aggregated with all other Swap Agreements of the Borrower and its Subsidiaries then in effect effectively converting interest rates from floating to fixed) do not exceed (i) on or before December 31, 2009, 110% and (ii) thereafter 100%, of the then outstanding principal amount of the Borrower’s Debt for borrowed money
which bears interest at a floating rate.  Notwithstanding anything to the contrary in this Section 9.18, there shall be no prohibition against the Borrower entering into any “put” or “call spread option” contracts or commodity price floors so long as such agreements are entered into for non-speculative purposes and in the ordinary course of business for the purpose of hedging against fluctuations of commodity prices.”

 

Section 3.           Conditions Precedent.  The effectiveness of this First Amendment is subject to the receipt by the Administrative Agent of the following documents and satisfaction of the other conditions
provided in this Section 3, each of which shall be reasonably satisfactory to the Administrative Agent in form and substance:

 

3.1           Payment by the Borrower to the Administrative Agent of all fees and other amounts due and payable on or prior to the First Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or
paid by the Borrower.

 

3.2           The Administrative Agent shall have received multiple counterparts of this First Amendment from the Majority Lenders.

 

3.3           The Administrative Agent shall have received such other documents as the Administrative Agent or special counsel to the Administrative Agent may reasonably request.

 

3.4           No Default or Event of Default shall have occurred and be continuing as of the First Amendment Effective Date.

 

Section 4.           Representations and Warranties; Etc.  Each Obligor hereby affirms:  (a) that as of the date of execution and delivery of this First Amendment, all of the representations and warranties
contained in each Loan Document to which such Obligor is a party are true and correct in all material respects as though made on and as of the First Amendment Effective Date

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(unless made as of a specific earlier date, in which case, was true as of such date); and (b) that after giving effect to this First Amendment and to the transactions contemplated hereby, no Defaults exist under the Loan Documents or will exist under the Loan Documents.

 

Section 5.           Miscellaneous.

 

5.1           Confirmation.  The provisions of the Credit Agreement (as amended by this First Amendment) shall remain in full force and effect in accordance with its terms following the effectiveness of this
First Amendment.

 

5.2           Ratification and Affirmation of Obligors.  Each of the Obligors hereby expressly (i) acknowledges the terms of this First Amendment, (ii) ratifies and affirms its obligations under the Guarantee
Agreement and the other Security Instruments to which it is a party, (iii) acknowledges, renews and extends its continued liability under the Guarantee Agreement and the other Security Instruments to which it is a party and agrees that its guarantee under the Guarantee Agreement and the other Security Instruments to which it is a party remains in full force and effect with respect to the Indebtedness as amended hereby.

 

5.3           Counterparts.  This First Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute
one and the same instrument.

 

5.4           No Oral Agreement.  This
written First Amendment, the Credit Agreement and the other Loan Documents executed in connection herewith and therewith represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties.  There are no subsequent oral agreements between the parties.

 

5.5           Governing Law.  This
First Amendment (including, but not limited to, the validity and enforceability hereof) shall be governed by, and construed in accordance with, the laws of the State of Texas.

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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed effective as of the date first written above.

 

BORROWER:                                                                   
 LINN ENERGY, LLC

By: /s/ Kolja Rockov                           

Kolja Rockov,

Executive Vice President and Chief Financial Officer

GUARANTORS:                                                       
 LINN ENERGY HOLDINGS, LLC

LINN OPERATING, INC.

PENN WEST PIPELINE, LLC

MID-CONTINENT HOLDINGS I, LLC

MID-CONTINENT HOLDINGS II, LLC

MID-CONTINENT I, LLC

MID-CONTINENT II, LLC

LINN GAS MARKETING, LLC

LINN EXPLORATION MIDCONTINENT, LLC

By: /s/ Kolja Rockov                           

Kolja Rockov,

Executive Vice President and Chief Financial Officer

Houston 4003896                                                      

First Amendment

Signature Page - 1

  

 

  

BNP PARIBAS, as Administrative Agent, and a Lender

By: /s/ Betsy Jocher                            

Name:  Betsy Jocher

Title:    Director

By: /s/ Richard Hawthorne                

Name:  Richard Hawthorne

Title:    Director

ROYAL BANK OF CANADA, as Syndication Agent and a Lender

By: /s/ Don J. McKinnerney              

Name:  Don J. McKinnerney

Title:    Authorized Signatory

THE ROYAL BANK OF SCOTLAND plc, as a Co-Documentation Agent and a Lender

By: /s/ Lucy Walker                            

Name:  Lucy Walker

Title:    Vice President

CITIBANK, NA, as a Co-Documentation Agent and a Lender

By: /s/ James F. Reilly Jr.                    

Name:  James F. Reilly Jr.

Title:    Vice President

Houston 4003896                                                      

First Amendment

Signature Page - 2

  

 

  

CALYON NEW YORK BRANCH, as a Co-Documentation Agent and a Lender

By: /s/ Tom Byargeon                         

Name:  Tom Byargeon

Title:    Managing Director

By: /s/ Sharada Manne                       

Name:  Sharada Manne

Title:    Director

BARCLAYS BANK plc, as a Co-Documentation Agent and a Lender

By: /s/ Maria Lund                               

Name:  Maria Lund

Title:    Vice President

THE BANK OF NOVA SCOTIA, as a Lender

By: /s/ Andrew Ostrov                        

Name:  Andrew Ostrov

Title:    Director

BANK OF MONTREAL, as a Lender

By: /s/ James V. Ducote                      

Name:  James V. Ducote

Title:    Director

Houston 4003896                                                      

First Amendment

Signature Page - 3

  

 

  

WACHOVIA BANK, N.A., as a Lender

By: /s/ Christopher Hewitt                  

Name:  Christopher Hewitt

Title:    Vice President

SOCIETE GENERALE, as a Lender

By: /s/ Kevin Joyce                             

Name:  Kevin Joyce

Title:    Vice President

COMERICA BANK, as a Lender

By: /s/ Greg Smith                                

Name:  Greg Smith

Title:    Senior Vice President

ING CAPITAL LLC, as a Lender

By: /s/ Charles E. Hall                          

Name:  Charles E. Hall

Title:    Managing Director

Houston 4003896                                                      

First Amendment

Signature Page - 4

  

 

  

FORTIS CAPITAL CORP., as a Lender

By: /s/ David Montgomery                

Name:  David Montgomery

Title:    Director

By: /s/ Ilene Fowler                              

Name:  Ilene Fowler

Title:    Director

KEYBANK NATIONAL ASSOCIATION, as a Lender

By: /s/ Todd Coker                               

Name:  Todd Coker

Title:    AVP

CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as a Lender

By: /s/ Vanessa Gomez                        

Name:  Vanessa Gomez

Title:    Director

By: /s/ Mikhail Faybusovich              

Name:  Mikhail Faybusovich

Title:    Vice President

COMPASS BANK, as a Lender

By: /s/ Greg Determann                       

Name:  Greg Determann

Title:    Vice President

Houston 4003896                                                      

First Amendment

Signature Page - 5

  

 

  

DnB NOR BANK ASA, as a Lender

By: /s/ Philip F. Kurpiewski                

Name:  Philip F. Kurpiewski

Title:    Senior Vice President

By: /s/ Thomas Tangen                      

Name:  Thomas Tangen

Title:    Senior Vice President

     Head of Corporate Banking

DZ BANK AG, DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK, FRANKFURT AM MAIN, NEW YORK BRANCH, as a Lender

By:       _____________________ 

Name:

Title:

UNION BANK OF CALIFORNIA, N.A., as a Lender

By:       _____________________ 

Name:

Title:

U.S. BANK NATIONAL ASSOCIATION, as a Lender

By: /s/ Justin M. Alexander                

Name:  Justin M. Alexander

Title:    Vice President

Houston 4003896                                                      

First Amendment

Signature Page - 6

  

 

  

ALLIED IRISH BANKS P.L.C., as a Lender

By:       _____________________  

Name:

Title:

 

Houston 4003896                                                      

First Amendment

Signature Page - 7hartmarx_ex10-1.htm

 

Exhibit 10.1

 

 

FIRST AMENDMENT TO AMENDED AND RESTATED ASSET PURCHASE AGREEMENT

 

This FIRST AMENDMENT TO AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (the “First Amendment”), dated as of July 31, 2009, is made by and among Hartmarx Corporation, a Delaware corporation (“Parent”)
and the selling subsidiaries named on Appendix I hereto (collectively, other than Canadian Sub, the “Sellers”), Emerisque Brands UK Limited, a company formed under the laws of England and Wales (“Emerisque”) and SKNL North America, B.V., a company incorporated under the laws of The Netherlands (“SKNL”,
collectively with Emerisque and any of their permitted designees, the “Purchasers”), and S. Kumars Nationwide Limited, a company incorporated under the laws of India (“SKNL Parent”). Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Asset Purchase Agreement (as defined below).

 

WHEREAS, Sellers, Canadian Sub, Purchasers and SKNL Parent (solely for purposes of Sections 7.2(c) and 8.10 therein) have entered into that certain Amended and Restated Asset Purchase Agreement dated as of June 1, 2009 (the “Asset Purchase Agreement”); and

 

WHEREAS, Sellers, Canadian Sub, Purchasers and SKNL Parent desire to amend the Asset Purchase Agreement as hereinafter set forth pursuant to Section 8.12 thereof.

 

NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants, and agreements set forth herein and in the Asset Purchase Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

 

Section 1.     Amendments.

 

(a)         Section 1.1(c) of the Asset Purchase Agreement is hereby amended by adding the following at the end thereof:

 

“(v)  all rights to direct Sellers to assume and assign the WGW Agreement to Purchasers or their designee upon the earlier of (a) entry of a Final Order in the WGW Litigation by the Bankruptcy Court, the United States District Court for the Northern District of Illinois or any other court of competent jurisdiction (hereinafter
referred to as the “Applicable Court”) to which no appeal, motion to rehear or reconsider, motion for a stay pending an appeal, petition for certiorari, remand or any other application for judicial review or other protest of any kind relating thereto is pending or could be timely filed (a “Final Non-Appealable Order”) deeming the WGW Agreement assumable and
assignable to Purchasers, or (b) the consent of WGW to the assumption and assignment of the WGW Agreement to Purchasers; it being understood and agreed that upon the occurrence of an event set forth in clause (a) or (b) above, Purchasers may direct Sellers to assume and assign the WGW

 

  

 

  

 

Agreement to Purchasers or their designee in accordance with this Agreement and, upon such assignment, Purchasers shall pay, or cause to be paid by a party other than Sellers, all costs, whether pre-Petition Date or post-Petition Date costs, relating to the assignment and assumption of the WGW Agreement; provided, however,
that (i) upon entry of a Final Non-Appealable Order in the WGW Litigation deeming the WGW Agreement not assumable and assignable to Purchasers, (ii) the voluntary dismissal of the WGW Litigation at Purchasers’ direction or (iii) termination of the WGW Agreement pursuant to its terms or entry of a Final Non-Appealable Order providing for such termination (each of clauses (i), (ii) and (iii), a “WGW Termination Event”), then all
rights of Purchasers under this Section 1.1(c)(v) shall terminate; and

 

(vi)  all consideration to which Sellers are entitled pursuant to the WGW Agreement from the Closing Date to and including the effective date of any assumption and assignment of the WGW Agreement to Purchasers or their designee, which consideration shall be promptly paid to Purchasers upon receipt by Sellers, as more fully
set forth in the Transition Services Agreement; provided, however, that the rights of Purchasers and obligations of Sellers under this Section 1.1(c)(vi) shall be effective only to the extent that (i) (y) a WGW Termination Event has not occurred or (z) Purchasers have not failed to promptly direct Sellers to assume and
assign the WGW Agreement to Purchasers or their designee in accordance with this Agreement nor failed to pay all costs, whether pre-Petition Date or post-Petition Date costs, upon such assumption and assignment of the WGW Agreement in accordance with this Agreement upon the occurrence of an event set forth in clause (a) or (b) of Section 1.1(c)(v) above, and (ii) Purchasers are in compliance with their obligations under Section
5.7(d) herein.”

 

(b)         Section 1.1(d) of the Asset Purchase Agreement is hereby amended and restated in its entirety as follows:

 

“any rights, claims, causes of action or, solely with respect to the Assumed Liabilities and Acquired Assets or otherwise as expressly set forth herein, defenses of Sellers against third parties arising out of events occurring prior to the Closing Date, including and, for the avoidance of doubt, arising out of events occurring
prior to the Petition Date and including any rights under or pursuant to any and all warranties, representations and guarantees made by suppliers, manufacturers and contractors relating to products sold, or services provided, to Sellers, excluding only the rights, claims and causes of action that are identified as Excluded Assets in Section 1.2, but expressly including the rights, claims, defenses and causes of action described on Exhibit
1.1(d) attached hereto;”

 

  

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(c)         Section 1.2(m) of the Asset Purchase Agreement is hereby amended and restated in its entirety as follows:

 

“all avoidance actions and other causes of action under Sections 544 through 553, inclusive, of the Bankruptcy Code and similar actions under applicable state law, including without limitation, the ability to compromise, settle or defend any such claims;”

 

(d)         Section 1.2 of the Asset Purchase Agreement is hereby amended by adding the following at the end thereof: "(t) the bank accounts relating to the Business that are listed on Schedule
1.2(t) (including all rights or incidents of interest with respect to the cash or cash equivalents in such bank accounts on or before the Closing Date).

 

(e)         A new clause (e) is hereby added to Section 1.3 of the Asset Purchase Agreement as follows (and existing clauses (e), (f) and (g) of such Section 1.3 are
hereby re-lettered as clauses (f), (g) and (h)):

 

      “(e)  (i) all accrued and unpaid pre- and post-petition liabilities related to Assigned Contracts that are (a) set forth and established in the Sale Order that was entered by the Bankruptcy Court on June 25, 2009, including Exhibit A thereto and
(b) set forth and established by orders and/or stipulations entered by the Bankruptcy Court between July 2, 2009 and July 30, 2009, but also including the order to be entered by the Bankruptcy Court resolving the objections filed by Manhattan Associates and SAP America, Inc. in the form agreed to by Sellers and Purchasers on July 29, 2009, with respect to such Assigned Contracts (the foregoing hereinafter referred to as the "Assigned Contract Amounts")
(it being understood and agreed that the payment of any Assigned Contract Amounts shall not be duplicative of the payment of any Cure Costs); and (ii) the obligations set forth in paragraph 49.II of the June 25, 2009 Sale Order in an aggregate amount not to exceed $2,300,000 (which $2,300,000 cap is inclusive of the $2,000,000 amount set forth in paragraph 49.II of the June 25, 2009 Sale
Order);”

 

(f)         Section 1.6 of the Asset Purchase Agreement is hereby amended and restated in its entirety as follows:

 

“Purchase Price.   In consideration for the Acquired Assets, the Purchasers shall, in addition to the assumption of the Assumed Liabilities, pay to (i) Wachovia as agent for the DIP Lenders at the Closing consideration equal to the Pre-Closing DIP
Balance (the “Base Purchase Price”) through a combination of (A) the proceeds of equity invested by the Purchasers, (B) one or more borrowings under the New Credit Facility (which shall include the delivery to Wachovia as agent for the DIP Lenders a secured promissory note (the “Term Note”) in the principal amount of $10.0 million, containing the terms set forth
on Exhibit M) and (C) the application of the Deposit previously delivered by the Purchasers to Wachovia as agent for the DIP Lenders to the extent the Deposit has not previously been applied to the DIP Balance and (ii) the Sellers the Post-Closing Funding Amount.  The

 

  

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“Purchase Price” shall consist of the sum of the aggregate value of the Assumed Liabilities, the Base Purchase Price and the Post-Closing Funding Amount.”

 

(g)          Section 1.7 of the Asset Purchase Agreement is hereby amended and restated in its entirety as follows:

 

“Base Purchase Price.  (a)  Immediately following the close of business on the day prior to the Closing Date, Sellers shall deliver to
Purchasers the DIP Balance Certificate.

 

(b)  The Base Purchase Price shall be paid in cash except to the extent of the sum of (i) the face value of letters of credit included therein that are assumed or replaced by Purchasers at Closing and (ii) the principal amount of the Junior Note.”

 

(e)         All references to “Adjusted Base Purchase Price” in Sections 2.2(b)(i), 4.6(a), 4.6(b), 4.7, 5.9 and 8.4(h) (including the reference in Section
8.4(h) to “Adjusted Purchase Price”) and in the definition of “Financing” are hereby amended to “Base Purchase Price”.

 

(f)         Section 5.7(d) of the Asset Purchase Agreement is hereby amended and restated in its entirety as follows:

 

“(i)  In the event an appeal is taken or a stay pending appeal is requested, from the Bidding Procedures Order or the Sale Order, Sellers shall promptly notify Purchasers of such appeal or stay request and shall promptly provide to Purchasers a copy of the related notice of appeal or order of stay. Sellers shall also
provide Purchasers with written notice of any motion or application filed in connection with any appeal from either of such orders.  If an appeal or a stay pending appeal is taken with respect to the Bidding Procedures Order or the Sale Order, Sellers shall use their best efforts to cause the timely opposing and dismissing of such appeal or stay pending appeal and to cause such order to become a Final Order.

 

(ii) Sellers acknowledge and agree that Purchasers are or shall be third party beneficiaries and/or true parties in interest with respect to the WGW Litigation.  Prior to Closing, Sellers shall use their best efforts to timely prosecute and/or defend against, as directed
by Purchasers and at Purchasers’ expense, the WGW Litigation, including, without limitation, any appeal, motion to rehear or reconsider, motion for a stay pending an appeal, petition for certiorari, remand or any other application for judicial review or other protest of any kind relating thereto. Purchasers shall provide Sellers drafts of

 

  

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all filings with the Applicable Court of any motions, orders, notices, or other pleadings that Purchasers propose that Sellers file with the Applicable Court relating to the WGW litigation as far in advance of such filing as is reasonably practical.  Purchasers shall cooperate with Sellers and consider in good faith the views
and any changes or revisions requested by Sellers with respect to all such filings. Notwithstanding the foregoing, after the Parties shall have used good faith efforts to resolve any disagreements, in the event of a material disagreement regarding any such filing and/or the direction of the WGW Litigation, Sellers may decline to follow the direction of Purchasers or make filings prepared by Purchasers and, in such event, hereby grant Purchasers the right to immediately intervene or substitute as third party beneficiaries
and/or true parties in interest to prosecute and/or defend against any such actions.

 

(iii) To the extent that, by the date the Chapter 11 Cases would otherwise be closed by the Bankruptcy Court, (a)(1) no Final Non-Appealable Order has been entered by the Applicable Court in the WGW Litigation deeming the WGW Agreement assumable and assignable to Purchasers or not assumable and assignable to Purchasers, (2) the WGW
Agreement has not been assumed and assigned to Purchasers with the consent of WGW or (3) a WGW Termination Event has not occurred, and (b) all other proceedings arising in or related to the Chapter 11 Case of Simply Blue Apparel, Inc. (“Simply Blue”) have concluded such that the Chapter 11 Case of Simply Blue would otherwise be dismissed or closed, the Chapter 11 Case of Simply Blue shall remain open and Purchasers shall pay all costs
and expenses incurred as a result of leaving the Chapter 11 Case of Simply Blue open until the occurrence of an event set forth in clause (a) above; provided, however, that Sellers shall cooperate in good faith with Purchasers to establish an operating budget governing the Chapter 11 Case of Simply Blue, Sellers shall use good faith efforts to operate in accordance with the terms of
such budget and Sellers shall obtain advance approval from Purchasers prior to incurring costs and expenses in excess of the terms of such budget; it being understood that Sellers shall not be in breach of this Agreement solely as a result of Purchasers’ denial of  Sellers’ reasonable request to incur costs and expenses in excess of the terms of such budget.

 

(iv)  Through the earlier of (a) the entry of a Final Non-Appealable Order in the WGW Litigation deeming the WGW Agreement assumable and assignable to Purchasers or not assumable and assignable to Purchasers, (b) the assumption and assignment of the WGW Agreement to Purchasers with the consent of WGW, and (c) a WGW Termination
Event, Purchasers shall, with the cooperation of Sellers in accordance with the terms of the Transition Services Agreement and at Purchasers’ expense, retain and continue the operations of Simply Blue, solely to the extent necessary to fulfill Sellers’ obligations under the WGW Agreement, status quo ante as of the time of the Petition Date; provided; however,
that Sellers shall cooperate in good faith with Purchasers to establish an operating budget governing such operations,

 

  

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Sellers shall use good faith efforts to operate in accordance with the terms of such budget and Sellers shall obtain advance approval from Purchasers prior to incurring costs and expenses in excess of the terms of such budget; it being understood that Sellers shall not be in breach of this Agreement solely as a result of Purchasers’
denial of  Sellers’ reasonable request to incur costs and expenses in excess of the terms of such budget.  In the event Purchasers prove a breach by Sellers of this Section 5.7(d)(iv), Sellers acknowledge and agree that monetary damages alone would be insufficient to compensate Purchasers for Sellers’ breach of this Section 5.7(d)(iv) and that irreparable
harm would result from breach of this Section 5.7(d)(iv), and Sellers hereby consent to the entry of an order for specific performance to compel Sellers’ performance of any obligations under these this Section 5.7(d)(iv) to the extent that Purchasers shall pay all costs and expenses of complying with such order of specific performance; provided; however,
that Sellers shall cooperate in good faith with Purchasers to establish an operating budget governing such order of specific performance, Sellers shall use good faith efforts to operate in accordance with the terms of such budget and Sellers shall obtain advance approval from Purchasers prior to incurring costs and expenses in excess of the terms of such budget; it being understood that Sellers shall not be in violation of such order of specific performance solely as a result of Purchasers’ denial of  Sellers’
reasonable request to incur costs and expenses in excess of the terms of such budget.

 

(v)  Purchasers, on the one hand, and Sellers, on the other hand, shall each be deemed in compliance with this Section 5.7(d) unless and until the other provides written notice of any alleged noncompliance and such noncompliance is not cured within ten (10)
business days.”

 

(g)         The following definitions are hereby added to Article IX in their proper alphabetical locations:

 

“Applicable Court” has the meaning set forth in Section 1.1(c).

 

“Assigned Contract Amounts” has the meaning set forth in Section 1.3(e).

 

“Base Purchase Price” has the meaning set forth in Section 1.6.

 

“Deposit” means the sum of $4,000,000 delivered by the Purchasers to Wachovia as agent for the Dip Lenders on July 31, 2009 as partial payment of the Purchase Price.

 

“Final Non-Appealable Order” has the meaning set forth in Section 1.1(c).

 

“New Credit Facility”  means the senior secured credit facility of up to $105,000,000, consisting of a revolving credit facility in the amount of $95,000,000 and a term

 

  

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loan facility in the amount of $10,000,000, to be entered into among HMX Operating Co., LLC, as US Borrower, HMX Canada Acquisition Corp., as Canadian Borrower, and Quartet Real Estate, LLC, HMX Acquisition Corp., Embu Investments sp. z o.o. and Remala Trading B.V., as Guarantors, Wachovia, as Agent, and the lenders party thereto to
provide a portion of the Financing.

 

“Post-Closing Funding Amount” means the sum of $335,000 to be paid by the Purchasers to the Sellers at Closing in full satisfaction of any and all expenses related to up to five (5) employees of Sellers retained by Sellers after the Closing to oversee and perform
the Sellers’ administrative obligations under the Transition Services Agreement and wind down the Sellers’ bankruptcy estates, including the salaries of such employees, the rental expense of office facilities for such employees and any other expenses related to the equipping, furnishing and maintenance of such office facilities; provided that (i) the Post-Closing Funding Amount shall be treated as a non-accountable expense allowance
with respect to such employees and the services to be rendered by such employees under the Transition Services Agreement, (ii) Sellers shall not be obligated to account to Purchasers for the proportion of time such employees spend on transition services or other activities and (iii) Purchasers shall not be obligated to pay any other amounts with respect to such employees in connection with their performance of Sellers’ obligations under the Transition Services Agreement.

 

“Simply Blue” has the meaning set forth in Section 5.7(d)(iii).

 

“WGW” has the meaning set forth on Exhibit 1.1(d).

 

“WGW Agreement” has the meaning set forth on Exhibit 1.1(d).

 

“WGW Litigation” has the meaning set forth on Exhibit 1.1(d).

 

“WGW Termination Event” has the meaning set forth in Section 1.1(c)(v).

 

(h)         The following definitions are hereby deleted in their entirety from Article IX:  “Adjusted Base Purchase Price” and “Adjustment Amount”.

 

(i)         The definition of “DIP Balance” is hereby amended and restated in its entirety as follows:

 

“DIP Balance”  means the aggregate outstanding borrowings by the Sellers under the revolving credit facilities contained in the DIP Financing, including the face value of letters of credit issued and outstanding under the DIP Financing but excluding, as
identified on Schedule 5.12, (i) any such letters of credit under which the DIP Lenders have no liability from and after the Closing and (ii) letters of credit that relate to liabilities the Purchasers are not assuming hereunder.

 

(j)         All references to “Junior Secured Note” in the Table of Exhibits, Sections 2.2(b)(ii) and 4.7 and
in Article IX are hereby amended to refer to “Term Note”.

 

  

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(k)         Schedule 1.1(k) of the Asset Purchase Agreement is hereby amended and restated in its entirety in the form attached hereto.

 

(l)         A new Schedule 1.2(t) is hereby added to the Asset Purchase Agreement in the form attached hereto and the following is hereby added to the Table of Schedules in
its proper chronological position:

 

“Schedule 1.2(t)         Bank Accounts Retained by Sellers”.

 

(m)         Exhibit M to the Asset Purchase Agreement is hereby amended and restated in its entirety in the form attached hereto as Exhibit M.

 

(n)         A new Exhibit 1.1(d) is hereby added to the Asset Purchase Agreement in the form attached hereto immediately following Exhibit M.

 

Section 2.     Indemnification. Purchasers agree to and do hereby indemnify and hold Sellers and their subsidiaries and affiliates, and their respective directors, officers, employees and agents (collectively, the
“Seller Indemnified Parties”) harmless from and against any and all damage, loss, fines, penalties, judgments, assessments, liability and expense (including, without limitation, reasonable attorneys’ fees) (“Losses”) to which the Seller Indemnified Parties may be subjected or which the Seller Indemnified Parties incur or sustain arising out of or attributable,
directly or indirectly, to (i) the performance by Sellers of their respective obligations under this First Amendment with respect to (a) the WGW Litigation and (b) Section 5.7(d) of the Asset Purchase Agreement as hereby amended and restated, (ii) any actions by Purchaser with respect to the WGW Litigation, including without limitation, any intervention or substitution by Purchasers therein and (iii) failure by Purchasers to pay all costs, whether pre-Petition Date or post-Petition Date costs, relating to such
assumption and assignment of the WGW Agreement as provided in this Agreement upon the occurrence of an event set forth in clause (a) or (b) of Section 1.1(c)(v) of the Asset Purchase Agreement, but expressly excluding any and all Losses incurred, arising or sustained out of or attributable, directly or indirectly, to acts of gross negligence, willful misconduct or fraud by any of the Seller Indemnified Parties; provided, however, that for purposes
of this Section 2, Losses shall not be deemed to include any damages in connection with the rejection of the WGW Agreement by Sellers.

 

Section 3.     Continuity. Except as amended in this First Amendment, the Asset Purchase Agreement shall continue to be and shall remain in full force and effect in accordance with its terms.

 

Section 4.     Severability. Wherever possible, each provision hereof shall be interpreted in such manner as to be effective and valid under applicable law, but in case any one or more of the provisions contained
herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such provision shall be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of

 

  

8

  

such invalid, illegal or unenforceable provision or provisions or any other provisions hereof, unless such a construction would be unreasonable.

 

Section 5.     Governing Law. This First Amendment shall be governed by and construed in accordance with the laws of the State of New York without regard to the rules of conflict of laws of the State of New
York or any other jurisdiction.

 

Section 6.     Complete Agreement. This First Amendment and the Asset Purchase Agreement (including the Ancillary Documents, Exhibits, Schedules and the other documents and instruments referred to therein)
constitute the entire agreement and supersede all other prior agreements and understandings, both written and oral, among the parties or any of them, with respect to the subject matter hereof and thereof, including, without limitation, any transaction between or among the parties hereto and thereto.

 

Section 7.     Counterparts; Effectiveness. This First Amendment may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same
agreement. This First Amendment shall become effective when each party hereto shall have received counterparts thereof signed by all the other parties hereto.

 

[Signature pages follow.]

 

 

9

 

 

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to Amended and Restated Asset Purchase Agreement to be executed on their behalf by their officers thereunto duly authorized, as of the date first above written.

 

 

 

	  	
HARTMARX CORPORATION
	  
	  	
By:
	
/s/   Taras R. Proczko
	  
	  	
Name:
	
Taras R. Proczko
	  
	  	
Title:
	
Senior Vice President,
	  
	  	
General Counsel and Secretary
	  
	  	  	  
	  	  
	  	
ANNISTON SPORTSWEAR CORPORATION

BRIAR, INC.

CHICAGO TROUSER COMPANY, LTD. C.M. CLOTHING, INC.

C.M. OUTLET CORP.

CONSOLIDATED APPAREL GROUP, INC.

COPPLEY APPAREL GROUP LIMITED

COUNTRY MISS, INC.

COUNTRY SUBURBANS, INC.

DIRECT ROUTE MARKETING CORPORATION

E-TOWN SPORTSWEAR CORPORATION

FAIRWOOD-WELLS, INC.

GLENEAGLES, INC.

HANDMACHER FASHIONS FACTORY OUTLET, INC.

HANDMACHER-VOGEL, INC.

HART SCHAFFNER & MARX

HART SERVICES, INC.

HARTMARX INTERNATIONAL, INC.

HICKEY-FREEMAN CO., INC.

HIGGINS, FRANK & HILL, INC.

HMX LUXURY, INC.

HMX SPORTSWEAR, INC.

HOOSIER FACTORIES, INCORPORATED

	  	  

	  	
By:
	
/s/   Taras R. Proczko
	  
	  	
Name:
	
Taras R. Proczko
	  
	  	
Title:
	
Vice President
	  

  

  

  

	  	
HSM UNIVERSITY, INC.

INTERCONTINENTAL APPAREL, INC.

INTERNATIONAL WOMEN’S APPAREL, INC.

JAYMAR-RUBY, INC.

JRSS, INC.

KUPPENHEIMER MEN’S CLOTHIERS DADEVILLE, INC.

MONARCHY GROUP, INC.

NATIONAL CLOTHING COMPANY, INC.

106 REAL ESTATE CORP.

NYC SWEATERS, INC.

ROBERT’S INTERNATIONAL CORPORATION

ROBERT SURREY, INC.

SALHOLD, INC.

SEAFORD CLOTHING CO.

SIMPLY BLUE APPAREL, INC.

SOCIETY BRAND, LTD.

SWEATER.COM APPAREL, INC.

TAG LICENSING, INC.

TAILORED TREND, INC.

THORNGATE UNIFORMS, INC.

THOS. HEATH CLOTHES, INC.

TRADE FINANCE INTERNATIONAL LIMITED

UNIVERSAL DESIGN GROUP, LTD.

M. WILE & COMPANY, INC.

WINCHESTER CLOTHING COMPANY

YORKE SHIRT CORPORATION

ZOOEY APPAREL, INC.

	  	  	  
	  	
By:
	
/s/   Taras R. Proczko
	  
	  	
Name:
	
Taras R. Proczko
	  
	  	
Title:
	
Vice President
	  

	  	
HSM REAL ESTATE LLC

	  	  
	  	
By: Hart Schaffner & Marx, its sole member

	  	
By:
	
/s/   Taras R. Proczko
	  
	  	
Name:
	
Taras R. Proczko
	  
	  	
Title:
	
Vice President
	  

  

  

  

	  	  
	  	  
	  	
EMERISQUE BRANDS UK LIMITED

	  	
By:
	
/s/ Ajay Khaitan
	  
	  	
Name:
	
Ajay Khaitan
	  
	  	
Title:
	
Chief Executive Officer
	  

	  	  
	  	  
	  	
SKNL NORTH AMERICA, B.V.

	  	
By:
	
/s/ Ajay Khaitan
	  
	  	
Name:
	
Ajay Khaitan
	  
	  	
Title:
	
Authorized Signatory
	  

	  	  
	  	  
	  	
S. KUMARS NATIONWIDE LIMITED

	  	
By:
	
/s/ Ajay Khaitan
	  
	  	
Name:
	
Ajay Khaitan
	  
	  	
Title:
	
Deputy Managing Director
	  

 

  

  

  

APPENDIX I

Anniston Sportswear Corporation

Briar, Inc.

Chicago Trouser Company, Ltd.

C.M. Clothing, Inc.

C.M. Outlet Corp.

Consolidated Apparel Group, Inc.

Coppley Apparel Group Limited

Country Miss, Inc.

Country Suburbans, Inc.

Direct Route Marketing Corporation

E-Town Sportswear Corporation

Fairwood-Wells, Inc.

Gleneagles, Inc.

Handmacher Fashions Factory Outlet, Inc.

Handmacher-Vogel, Inc.

Hart Schaffner & Marx

Hart Services, Inc.

Hartmarx International, Inc.

Hickey-Freeman Co., Inc.

Higgins, Frank & Hill, Inc.

HMX Luxury, Inc.

HMX Sportswear, Inc.

Hoosier Factories, Incorporated

HSM Real Estate LLC

HSM University, Inc.

Intercontinental Apparel, Inc.

International Women’s Apparel, Inc.

Jaymar-Ruby, Inc.

JRSS, Inc.

Kuppenheimer Men’s Clothiers Dadeville, Inc.

Monarchy Group, Inc.

National Clothing Company, Inc.

106 Real Estate Corp.

NYC Sweaters, Inc.

Robert’s International Corporation

Robert Surrey, Inc.

Salhold, Inc.

Seaford Clothing Co.

Simply Blue Apparel, Inc.

Society Brand, Ltd.

Sweater.com Apparel, Inc.

Tag Licensing, Inc.

Tailored Trend, Inc.

Thorngate Uniforms, Inc.

  

  

  

Thos. Heath Clothes, Inc.

Trade Finance International Limited

Universal Design Group, Ltd.

M. Wile & Company, Inc.

Winchester Clothing Company

Yorke Shirt Corporation
Zooey Apparel, Inc.

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