EXHIBIT 10.05 FIRST AMENDMENT TO DEBTOR IN POSSESSION LOAN AND SECURITY --------------------------------------------------------- AGREEMENT --------- This First Amendment to Debtor In Possession Loan and Security Agreement is made as of this 18th day of July, 2001 by and among CASUAL MALE CORP. (the "Borrowers' Representative"), a Massachusetts corporation, having a principal place of business at 555 Turnpike Street, Canton, Massachusetts 02021, as agent for the Borrowers, being those Persons named on Exhibit 1 hereto, debtors and debtors in possession; The Borrowers; each of the Revolving Credit Lenders party to the Loan Agreement (defined below) (together with each of their successors and assigns, referred to individually as a "Revolving Credit Lender" and collectively as the "Revolving Credit Lenders"), and FLEET RETAIL FINANCE INC., as Administrative Agent and Collateral Agent, a Delaware corporation, having its principal place of business at 40 Broad Street, Boston, Massachusetts 02109; and BACK BAY CAPITAL FUNDING LLC, as Tranche B Lender and as Tranche C Lender, in consideration of the mutual covenants herein contained and benefits to be derived herefrom. W I T N E S S E T H A. Reference is made to the Debtor In Possession Loan and Security Agreement (the "Loan Agreement") dated as of May 18, 2001 by and among the Borrowers' Representative, the Borrowers, the Revolving Credit Lenders, the Tranche B Lender, the Tranche C Lender, the Administrative Agent and the Collateral Agent. B. The parties to the Loan Agreement desire to modify and amend certain provisions of the Loan Agreement, as provided herein. Accordingly, the parties hereto agree as follows: 1. Definitions. Capitalized terms used herein and not otherwise defined ----------- herein shall have the meanings assigned to such terms in the Loan Agreement. 2. Amendment to Article 2. The provisions of Section 2-16(a) of the Loan ---------------------- Agreement are hereby amended by deleting the words "eighteen months" appearing in the second line thereof and inserting the words "twelve months" in their stead. 3. Amendment to Article 3. The provisions of Section 3-3(b) of the ---------------------- Loan Agreement are hereby amended by deleting clause (ii) thereof in its entirety. 4. Amendments to Exhibits to the Loan Agreement. (a) The provisions of -------------------------------------------- Exhibit 2:2-12 are hereby amended by adding the following after the chart appearing therein: The Base Margin and the Libor Margin based upon the Pricing Grid shall initially be determined on the Pricing Grid Change Date and shall be reset every three months thereafter. (b) Exhibit 7:7-11 to the Loan Agreement is hereby deleted in its entirety and a new Exhibit 7:7-11 in the form annexed to this First Amendment is substituted in its stead. 5. Conditions Precedent to Effectiveness. This First Amendment shall ------------------------------------- not be effective until each of the following conditions precedent have been fulfilled to the satisfaction of the Administrative Agent: a. This First Amendment shall have been duly executed and delivered by the respective parties hereto and, shall be in full force and effect and shall be in form and substance satisfactory to the Administrative Agent and the Lenders. b. All action on the part of the Borrowers necessary for the valid execution, delivery and performance by the Borrowers of this First Amendment shall have been duly and effectively taken and evidence thereof satisfactory to the Administrative Agent shall have been provided to the Administrative Agent. c. The Final Borrowing Order shall have been entered in the Proceedings, which Final Borrowing Order shall incorporate, among other things, approval of this First Amendment. d. The Borrowers shall have provided such additional instruments and documents to the Administrative Agent as the Administrative Agent and Administrative Agent's counsel may have reasonably requested. 6. Miscellaneous. ------------- a. This First Amendment may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which together shall constitute one instrument. b. This First Amendment expresses the entire understanding of the parties with respect to the transactions contemplated hereby. No prior negotiations or discussions shall limit, modify, or otherwise affect the provisions hereof. c. Any determination that any provision of this First Amendment or any application hereof is invalid, illegal or unenforceable in any respect and in any instance shall not effect the validity, legality, or enforceability of such provision in any other instance, or the validity, legality or enforceability of any other provisions of this First Amendment. d. The Borrowers shall pay on demand all costs and expenses of the Agents and the Lenders, including, without limitation, reasonable attorneys' fees in connection with the preparation, negotiation, execution and delivery of this First Amendment. e. The Borrowers warrant and represent that the Borrowers have consulted with independent legal counsel of the Borrowers' selection in connection with this First Amendment and is not relying on any representations or warranties of the Agents, the Lenders or their counsel in entering into this First Amendment. IN WITNESS WHEREOF, the parties have duly executed this First Amendment as of the day and year first above written. CASUAL MALE CORP. by ------------------------- Name: Elizabeth C. White Title: Chief Financial Officer THE BORROWERS MORSE SHOE, INC. JBI, INC. JBI APPAREL, INC. THE CASUAL MALE, INC. WGS CORP. TCMB&T, INC LP INNOVATIONS, INC. SPENCER COMPANIES, INC. BUCKMIN, INC. ELM EQUIPMENT CORP. JBI HOLDING COMPANY, INC. TCM HOLDING COMPANY, INC. ISAB, INC. MORSE SHOE INTERNATIONAL, INC. WHITE CAP FOOTWEAR, INC by -------------------------- Name: Elizabeth C. White Title: Chief Financial Officer FLEET RETAIL FINANCE INC., as Administrative Agent, as Collateral Agent, as Swingline Lender, and as Revolving Credit Lender By:___________________________ Name:_________________________ Title:_______________________ BACK BAY CAPITAL FUNDING, LLC as Tranche B Lender and Tranche C Lender By:________________________ Name:______________________ Title:_______________________ The following Lenders consent to the amendments set forth herein with the exception of the amendment to Exhibit 7:7-11, as to which their consent is not required. FOOTHILL CAPITAL CORPORATION By............................. Name.......................... Title.......................... HELLER FINANCIAL, INC. By................................ Name............................ Title............................. LASALLE BUSINESS CREDIT, INC By.............................. Name........................... Title........................... NATIONAL CITY COMMERCIAL FINANCE, INC. By................................ Name.............................. Title............................. IBJ WHITEHALL BUSINESS CREDIT CORP. By................................ Name.............................. Title............................. THE PROVIDENT BANK By................................ Name.............................. Title............................. FINANCIAL PERFORMANCE CONVENANTS Minimum Cumulative EBITDAR. The Borrowers shall not permit or suffer the following, tested as of the last day of each month (commencing with June 30, 2001 and through December 31, 2001) on a cumulative basis dating back to January 31, 2001, to be less than the following minimum cumulative amount: (a) Consolidated EBITDAR minus (b) 100% of any adequate protection payments made by the Borrowers during such period and not reflected in the Business Plan (without regard to any updating of the Business Plan), to the extent that such adequate protection payments were not otherwise included as reductions to EBITDAR for the period of measurement: - -------------------------------------------------------------------------------- Month Ending: Minimum Cumulative EBITDAR $ Millions - -------------------------------------------------------------------------------- June, 2001* 6.0 - -------------------------------------------------------------------------------- July, 2001* 5.3 - -------------------------------------------------------------------------------- August, 2001* 5.0 - -------------------------------------------------------------------------------- September, 2001* 7.7 - -------------------------------------------------------------------------------- October, 2001 10.3 - -------------------------------------------------------------------------------- November, 2001 14.2 - -------------------------------------------------------------------------------- December, 2001 27.1 - -------------------------------------------------------------------------------- * The Borrowers' compliance with the Minimum Cumulative EBITDAR test for the subject months will be waived unless Excess Availability is less than $17,500,000 for any three consecutive days during such period (the "Test Condition"). If the Test Condition occurs, the Borrower shall be obligated to comply with the Minimum Cumulative EBITDAR test for the subject month in which the Test Condition occurs and shall also be required to be in compliance with the Minimum Cumulative EBITDAR test for each month both preceding, and subsequent to, the month in which the Test Condition occurs (failing which an Event of Default shall be deemed to have arisen). In any event, whether or not the Test Condition has occurred, the Borrowers must comply with the Minimum Cumulative EBITDAR test for October, 2001 and each month thereafter. Minimum Rolling Four Quarter EBITDAR. The Borrowers shall not permit or suffer the following, tested as of the last day of each month (commencing with January, 2002) on a trailing twelve month basis, to be less than the following minimum cumulative amount: (a) Consolidated EBITDAR minus (b) 100% of any adequate protection payments made by the Borrowers during such period and not reflected in the Business Plan (without regard to any updating of the Business Plan), to the extent that such adequate protection payments were not otherwise included as reductions to EBITDAR for the period of measurement: - -------------------------------------------------------------------------------- Month Ending: Minimum EBITDAR (Rolling 12 Month Basis): $ Millions - -------------------------------------------------------------------------------- January, 2002 22.5 - -------------------------------------------------------------------------------- February, 2002 22.6 - -------------------------------------------------------------------------------- March, 2002 21.8 - -------------------------------------------------------------------------------- April, 2002 22.0 - -------------------------------------------------------------------------------- May, 2002 23.1 - -------------------------------------------------------------------------------- June, 2002 23.5 - -------------------------------------------------------------------------------- July, 2002 25.7 - -------------------------------------------------------------------------------- August, 2002 25.8 - -------------------------------------------------------------------------------- September, 2002 25.8 - -------------------------------------------------------------------------------- October, 2002 25.9 - -------------------------------------------------------------------------------- November, 2002 26.0 - -------------------------------------------------------------------------------- December, 2002 25.9 - -------------------------------------------------------------------------------- January, 2003 26.0 - -------------------------------------------------------------------------------- February, 2003 26.0 - -------------------------------------------------------------------------------- March, 2003 26.0 - -------------------------------------------------------------------------------- April, 2003 26.0 - -------------------------------------------------------------------------------- May, 2003 26.0 - -------------------------------------------------------------------------------- Capital Expenditures. The Borrower shall not permit or suffer its Consolidated Capital Expenditures to exceed the following: - -------------------------------------------------------------------------------- Fiscal Year Maximum for Entire Maximum for Each Fiscal Year Quarter - -------------------------------------------------------------------------------- EXHIBIT 7:7-11 Page 2 - -------------------------------------------------------------------------------- 2002 $5,000,000 $2,500,000 - -------------------------------------------------------------------------------- 2003 6,000,000 2,500,000 - -------------------------------------------------------------------------------- Excess Availability. The Borrower shall at all times have Excess Availability of not less than the following: - -------------------------------------------------------------------------------- From To Minimum Excess Availability ($ Millions) - -------------------------------------------------------------------------------- Closing November 30, 2001 5.0 - -------------------------------------------------------------------------------- December 1, 2001 Maturity Date 11.0 - -------------------------------------------------------------------------------- EXHIBIT 7:7-11 Page 3