December 1, 1999
Mr. E. Erwin Maddrey, II
201 Crescent Avenue
Greenville, SC 29605
Dear Mr. Maddrey,
Wachovia Bank, N.A. (the "Bank") is pleased to commit to E. Erwin Maddrey, II
(the "Borrower") the following credit facility (the "Commitment"). This letter
supersedes the Bank's commitment letter dated November 23, 1998.
Commitment Type:
Revolving Line of Credit
Amount:
$1,250,000.00
Purpose:
Personal business investments and expenses.
Interest Rate:
Lesser of the Bank's Prime Rate minus 1/2% or the one month LIBOR
rate plus 200 basis points. The mechanics of the interest rate
selection will be as follows: On the first business day of each
month, the Bank will take the lower of the two rates indicated
above and apply that index to the loan for the full month. If the
Prime Rate is selected, the interest rate will fluctuate during
the month with changes in the Prime Rate. If the LIBOR index is
chosen, the rate will remain fixed for the month.
Interest will be calculated on the basis of a 360 day year.
Repayment Terms:
Interest payable monthly. Principal is due on demand. The
Commitment expires on December 31, 2000.
Collateral:
The line is secured with 724,987 shares of Delta Woodside
Industries, Inc. common stock. At all times, a minimum 60% loan
to market value ratio will be maintained between the market value
of the collateral and the amount outstanding under the credit
facility. If the loan to market value exceeds 60%, the Bank will
require the Borrower to either pay down the principal balance to
a 60% margin or provide the Bank with additional acceptable
marketable securities to provide a 60% margin.
Financial Reports:
Financial statement on the Borrower such that the Bank will at
all times have a financial statement that is no greater than one
year old.
Fees:
None.
Prepayment
Premium:
There will be no prepayment premium. Any prepayment will be
applied first to accrued interest and then to the outstanding
principal balance.
Other Conditions:
a. This Commitment is subject to the maintenance by Borrower of a
condition satisfactory to the Bank and the execution of documents
satisfactory to the Bank.
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b. All costs, expenses, and fees incurred to close the Commitment
and perfect the Bank's security interest will be the
responsibility of the Borrower.
c. In addition to any other defaults normally specified in the
Bank's documents, to the extent permitted by law, Borrower agrees
that a default under this Commitment will also cause a default
under any other loan or obligation of the Borrower to the Bank
and that a default under any other loan or obligation of the
Borrower to the Bank will cause a default under this Commitment.
d. This Commitment shall be governed by the laws of the state of
South Carolina.
e. This Commitment is for the sole and exclusive benefit of the
borrower and may not be assigned by the Borrower.
f. No condition or other term of this Commitment may be waived or
modified except in writing signed by the Borrower and the Bank.
Mr. Maddrey, we are pleased to provide this line of credit to you. Should you be
in agreement with the above listed terms and conditions, please certify your
acceptance by signing below and returning one original for our files by December
15, 1999 at which time our Commitment will expire. Thank you for favoring
Wachovia Bank with your Private Banking needs.
Sincerely,
Lee Inabinet
Assistant Vice President
Accepted the 8th day of December, 1999.
/s/ E. Erwin Maddrey, II
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E. Erwin Maddrey, II
