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Title: |
Consent Agreement |
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Entities: |
JPMorgan Chase Bank; Oxford Industries, Inc.; PNC Bank, NA; Wachovia Bank, NA; Bank of America, NA; Bank of New York |
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Date: |
2006 |
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Size: |
Preview shows 5KB of 30KB total |
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Price: |
$36 |
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ID: |
#1714637 |
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CONSENT AGREEMENT
This CONSENT AGREEMENT (this "Consent"), made as of May 1, 2006, among
Oxford Industries, Inc., a Georgia corporation ("Parent"), Oxford of South
Carolina, Inc., a South Carolina corporation, and Tommy Bahama Group, Inc.
(formerly known as Viewpoint International, Inc., a Delaware corporation, as
Borrowers, the Domestic Subsidiaries of Borrowers party to the Credit Agreement
(as defined below) as Guarantors, the Lenders (as defined in the Credit
Agreement) party hereto, and SunTrust Bank, as the Administrative Agent.
W I T N E S S E T H:
-------------------
WHEREAS, Borrowers, the Guarantors, the Lenders, the financial
institutions party thereto as Issuing Banks and the Administrative Agent are
parties to that certain Amended and Restated Credit Agreement, dated as of July
28, 2004, as modified and amended by that certain First Amendment to Amended and
Restated Credit Agreement dated as of January 10, 2005 and as further modified
and amended by that certain Second Amendment to Amended and Restated Credit
Agreement dated as of September 21, 2005 (as further amended, restated,
supplemented or otherwise modified from time to time, the "Credit Agreement");
WHEREAS, the Parent intends to sell its womenswear division (the
"Womenswear Division") to The Millwork Trading Co, Ltd., d/b/a Li & Fung USA or
one of its affiliates (the "Womenswear Division Disposition");
WHEREAS, the Borrowers have requested that the Lenders consent to the
Womenswear Division Disposition and the Lenders have agreed to consent to such
disposition pursuant to the terms and subject to the conditions set forth
herein;
NOW THEREFORE, in consideration of the premises, the terms and
conditions contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree that
all capitalized terms used but not otherwise defined herein shall have the
meanings ascribed thereto in the Credit Agreement, as amended hereby, and
further agree as follows:
1. Consent.
(a) The Lenders hereby consent to the Womenswear Division
Disposition and waive compliance with Section 8.7 of the Credit Agreement,
Liquidation; Change in Ownership, Name or Year; Disposition or Acquisition of
Assets; Etc., only to the extent necessary to avoid a Default as a result of the
Womenswear Division Disposition; provided, however, that the Womenswear Division
Disposition shall be permitted only so long as: (i) the terms and conditions of
the Womenswear Division Disposition (which may include the lease or sale of one
or more parcels of real property currently relating exclusively to the
womenswear division) are on substantially the terms set forth in the letter of
intent attached hereto as Exhibit A (the "Letter of Intent"), except that the
Womenswear Division Disposition shall be effected by a transfer to The Millwork
Trading Co, Ltd., d/b/a Li & Fung USA or one of its affiliates of the assets of
the Parent and certain of its Subsidiaries related to its womenswear division
rather than by a sale of
<PAGE>
the capital stock of Oxford of South Carolina, Inc. as contemplated by the first
paragraph of the Letter of Intent; (ii) the documents affecting such sale and
the release documents permitting the release of liens in connection with such
sale are in form and substance acceptable to the Administrative Agent; (iii) no
Default or Event of Default exists at the time of such sale or otherwise would
be caused by such sale; (iv) such sale is consummated on or before June 5, 2006;
and (v) the Net Cash Proceeds of such sale are immediately remitted to the
Administrative Agent to be applied to the temporary repayment of the Obligations
in accordance with Section 2.6(b)(ii) of the Credit Agreement and, subject to
the conditions set forth in the Credit Agreement for borrowing, such amount may
be reborrowed by the applicable Borrower Party solely to reinvest in other
assets of such Borrower Party in a manner permitted in Section 1012(b) of the
Indenture and on the last day of the Reinvestment Period (as defined below) the
Revolving Loan Commitments shall be reduced permanently by the amount of such
Net Cash Proceeds that has not been reinvested as provided in clauses (ii)
through (vi) of Section 1012(b) of the Indenture and that otherwise would
constitute Excess Proceeds (as such term is defined in the Indenture) in excess
of $15 million under Section 1012(c) of the Indenture; provided, that (A) such
reinvestment must be made on or before the date 355 days following the closing
date of the Womenswear Division Disposition (or such later date as shall be
approved by the Majority Lenders in writing) (the "Reinvestment Period") and (B)
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