AMENDMENT TO LEASE AGREEMENT
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WHEREAS, Eagle & Phenix Hydro Company, Inc., a Delaware corporation,
(the "Lessor") and Fieldcrest Cannon, Inc., a Delaware corporation entered into
a Lease Agreement (the "Lessee") dated January 18, 1991 (the "Lease"); and
WHEREAS, the parties have agreed to certain changes in the Lease in
conjunction with amendments to that certain Promissory Note in the principal
amount of $1,000,000 dated June 18, 1991 (the "Note"), from Lender to Lessee,
and;
NOW, THEREFORE, in consideration of the premises, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
1. The $100,000 held by Lessee as Escrow Agent under Section
7 of the Lease is hereby released, and such amount is
hereby applied to reduce the amount of principal
outstanding under the Note.
2. Section 7 of the Lease is hereby deleted in its entirety
and replaced with the following:
"Section 7. Funding of Operating Deficits. If,
for any month, Lessee's Operating Costs exceed the Gross
Monthly Rent Amount, as defined in Section 9.A, Lessor
shall, within thirty (30) days of written notice from
Lessee, pay the amount stated in such notice, subject to
reasonable verification, and until such payment is made,
the amount shall accrue interest at the rate of twelve
percent (12%) per annum, compounded monthly, and Lessee
shall be entitled to apply all Rent (i.e., amounts over
Lessee's Operating Costs) toward reducing the amount so
owed by Lessor."
Except as hereby amended, the terms of the Lease remain the same, and
the parties ratify
and reaffirm all of their obligations thereunder.
Dated: June __, 1999
WITNESS: EAGLE & PHENIX HYDRO COMPANY, INC.
By: /s/ James W. Fulmer
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James W. Fulmer, Vice President
FIELDCREST CANNON, INC.
By:
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Its