EXHIBIT 10.58 FIRST AMENDMENT TO WARRANT AGREEMENT THIS FIRST AMENDMENT to the Warrant Agreement, dated June 17 1997, by and between Empire of Carolina, Inc., a Delaware corporation (the "Company"), one the one hand, and the holders from time to time of the Warrants on the other (each, a "Holder" and collectively, the "Holders") (the "Warrant Agreement") is dated as of January 22, 1998 (the "First Amendment"). WHEREAS, the Company and the Holders believe that it is their mutual best interests to amend the Warrant Agreement as set forth to increase the aggregate shares issuable under the Warrant Agreement; and WHEREAS, any provision of the Warrant Agreement may be amended, waived, discharged or terminated only by and with the written consent of the Company and the Holders of 75% of the Warrants. WHEREAS, attached hereto as Exhibit A is a Certificate of the Secretary of the Company with respect to the results of a vote amongst the Holders in connection with this Amendment. NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereto agree as follows: 1. The Warrant Agreement is amended to increase the aggregate shares of Common Stock issuable under the Warrant Agreement from 7,500,000 to 10,200,000. 2. Except as expressly amended hereby, the Warrant Agreement remains in full force and effect. 3. This Amendment shall be deemed to be a contract made under the laws of the State of Delaware, and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts made and performed entirely within such State. 4. This Amendment may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 11 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and year first above written. EMPIRE OF CAROLINA, INC. By /s/ Lawrence Geller ---------------------------------------- Name: Lawrence Geller Title: Vice President and General Counsel 12 EXHIBIT A WARRANT HOLDER WARRANTS VOTED VOTED FOR AGAINST ABSTAINED - ------------------------------------- ---------- ------- --------- --------- OCTOBER OFFERING - ---------------- Albert J. Miller & Helen K. Miller Family Trust 10,000 X Andrew A. Stern 10,000 X Bernard Kirsner Trust 5,000 X Bruce Corbin 1,000 X Charles E. Bradley 20,000 X Charles Leithauser 5,000 X Claudia C. Rouhana 2,500 X David Morley 2,500 X David S. Lawi 2,500 X Paul W. Perkins 5,000 X Dr. Paul D. Goldenheim 2,500 X Dr. Richard Corbin 1,500 X Estelle K. Meislich 5,000 X Garo A. Partoyan 3,750 X Gerald B. Jones 10,000 X H. Eugene Graves 20,000 X Hare & Co. As Custodian For Royal Bank Of Canada 40,000 X Harvey M. Campbell 5,000 X J. David Shapiro 1,000 X J.A. Cardwell 5,000 X J.A. Cardwell, Jr. 2,500 X J.F. Shea Co., Inc As Nominee 1997-25 100,000 X John Piccolo 5,000 X John T. Stanner 5,000 X 13 WARRANT HOLDER WARRANTS VOTED VOTED FOR AGAINST ABSTAINED - ------------------------------------- ---------- ------- --------- --------- Jonathan Cohen 1,000 X Kevin L. Jackson 1,250 X Lenore H. Schupak 7,500 X Neal Holtvogt 2,000 X Patrick H. Miller, Jr. 20,000 X Pro Series Racing, Inc. 5,000 X Richard Palmer 2,500 X Robert A. Simms 20,000 X Theodore Stern 10,000 X Walter Ingstrup 1,250 X Wilfred Huse 5,000 X William H. Lennon 5,000 X William J. Rouhana, Jr. 2,500 X William Joe Jackson 5,000 X William Schoen 2,500 X Andre W. Iseli 2,500 X Churchill Ass. L.P. 13,000 X Conzett Europa - Invest 50,000 X CSP Trust 12,500 X Fiducie Desjardins A/C 744766-7-59 20,000 X Fiducie Desjardins A/C 900595-0-59 5,000 X George L. Smith 2,500 X Goldstein Family Living Trust 2,500 X Howard Bernstein 2,500 X Phillip T. George, M.D. 12,500 X Stephen T. Skoly, Jr. 2,500 X Thomas E. McLain PC Employee Retirement Trust 7,500 X 14 WARRANT HOLDER WARRANTS VOTED VOTED FOR AGAINST ABSTAINED - ------------------------------------- ---------- ------- --------- --------- Walter F. Toombs 5,500 X Ferdinand F. Anderson, Jr. 1,250 X Commonwealth Associates, Inc. 9,100 X Michael A. Falk 336,476 X Keith M. Rosenbloom 87,973 X Edward R. Downe, Jr. 50,000 X Eric Rand 48,571 X Robert O'Sullivan 43,986 X Cornelia F. Eldridge 30,000 X Robert R. Beuret 26,857 X Vincent Labarbara 20,250 X Basil Asouitto 14,286 X Joseph P. Wynne 14,286 X Michael R. Lyall 14,286 X C. James Walker, Jr. 9,500 X Michael Volpe 6,661 X Stephen Labarbara 6,661 X Anthony J. Giardina 5,357 X David Stein 3,750 X Ronald Moschetta 3,571 X Eric Rubenstein 3,571 X Travis Brock 3,500 X Robert Nass 1,786 X Mark Danieli 1,786 X Craig Leppla 1,786 X Richard Galterio 1,500 X Mario Marsillo, Jr. 1,500 X David Wynne 1,500 X Michael Scalfani 1,500 X 15 WARRANT HOLDER WARRANTS VOTED VOTED FOR AGAINST ABSTAINED - ------------------------------------- ---------- ------- --------- --------- Charles S. Holmes 625,000 X James J. Pinto 625,000 X JUNE OFFERING - -------------- EMP Associates, LLC 1,266,988 X Pellinore Securities Corp. 112,754 X Axiom Capital Management, Inc. 112,754 X Aquae Sulis Investment Fund Limited 15,000 X Atlantic & Overseas Holdings Ltd. 25,000 X Contrary Fund-Parker Quillen/Pres 10,000 X Melanie R. Dacus 9,500 X Louis De Ricco 3,500 X The Humayan Waheed MD PC Pension 2,500 X Little Wing LP 10,000 X Medusa Capial S.A. 20,000 X Charles S. Meyer 10,000 X Gregory J. Osborne 4,500 X Swiss Bank Corporation 30,000 X Swiss Bank Corporation 7,500 X Swiss Bank Corporation 10,000 X Swiss Bank Corporation 10,000 X Swiss Bank Corporation 20,000 X Swiss Bank Corporation 2,500 X Tradewinds Fund Ltd. 10,000 X Kenneth Allen 5,000 X Nicky Borcea, IRA Rollover 10,000 X 16 WARRANT HOLDER WARRANTS VOTED VOTED FOR AGAINST ABSTAINED - ------------------------------------- ---------- ------- --------- --------- Tai-San Cheng 10,000 X Fontaine R. Christensen and 10,000 X Kevin Flanders 2,500 X Anthony Cirillo 12,500 X Luke Scanlon 5,000 X M. Perry Grant 5,000 X John Illibassi Family Trust 10,000 X Jastmar Associates 5,000 X Kenneth R. Kafesak 10,000 X Gary F. Lexa 5,000 X Wayne McLaughlin and 20,000 X John C. McNay and 5,000 X George Mordiglia IRA R/O Decd. 15,000 X RHL Associates, L.P. 15,000 X John P. O'Shea 10,000 X Jay T. Robling 10,000 X Lance C. Senning 5,000 X Michael Spadaro 10,000 X Leslie C. Taylor Trust Agreement 5,000 X Arthur Steinberg, IRA Rollover 5,000 X Lloyd W. Taylor and 5,000 X Harvey K. Yee 5,000 X Timothy Moran 50,000 X Freeburn Ventures ltd. 50,000 X Mark S. Rose 50,000 X William Forman 50,000 X Richard L. Bazelon 10,000 X Richard G. David 5,000 X 17 WARRANT HOLDER WARRANTS VOTED VOTED FOR AGAINST ABSTAINED - ------------------------------------- ---------- ------- --------- --------- Ronald A. Koplow 5,500 X Venogopal K. Menon 2,500 X Julio Novogrodzki 5,000 X Leonard M. Schiller 5,000 X Schneider Fuel & Oil, Inc. Pension Plan 5,000 X Town & Country Oil Corp. Pension Plan & Trust 2,500 X Theodore Stern SEP IRA 10,000 X Jo-Bar Enterprises, L.L.C. 10,000 X Joyce N. Westmoreland 2,500 X Kenneth R. Falchuk 2,500 X Zachary Gomes 10,000 X Daniel R. Lee 20,000 X Patrick H. Miller Jr. 10,000 X Frederick J. Oswald 2,500 X J.F. Shea Co., Inc. as Nominee 1997-25 100,000 X J. Michael Wolfe 10,000 X Pro Series Racing, Inc. 5,000 X Bill Hickey 10,000 X Aegis Pension Plan 20,000 X James R. Baugh and 10,000 X W. Sam Chandoha 10,000 X John J. Doran 10,000 X Harvey Feldschreiber and 10,000 X Philip T. George 12,500 X Phillip D. Gunn & Co., Inc. 10,000 X J. Peter Kline 20,000 X James H. Lynch, Jr. 10,000 X 18 WARRANT HOLDER WARRANTS VOTED VOTED FOR AGAINST ABSTAINED - ------------------------------------- ---------- ------- --------- --------- Alexander B. Miller 5,000 X Ronald Miller 10,000 X Stephen V. Millea and 10,000 X Sanford Kirschenbaum and 16,000 X MKS' OMO Contracting, Inc. 2,000 X Sanford Kirchenbaum & CO., CPA, PA 2,000 X Lenore H. Schupak 15,000 X Sintra Fund, Ltd. 25,000 X Donna de Varona 2,500 X SJG Management, Inc. 12,500 X Yair Talmi 10,000 X Paul and Benradette Torre 5,000 X Worldwide Fabrics, L.P. 10,000 X Faisal Finance (Switzerland) S.A. 30,000 X William Joe Jackson 5,000 X John Shaw 10,000 X Joshua Gottlieb 2,500 X Kenneth R. Falchuk 2,500 X David H. Zises 5,000 X Suzanne Schiller 5,000 X Edward T. Schnedier 2,500 X Wilfred Huse 5,000 X James J. Pinto 1,978,252 X Charles S. Holmes 2,078,752 X Telcom Partners, L.P. 62,500 X Commonwealth Associates, Inc. 750,000 X 19 Total for Both Offerings: - ------------------------- For: 8,521,373 Against: 27,857 Abstain: 1,450,770 85% Voted for the Amendment, .2% Voted Against the Amendment; 14.5% Abstained Total for June Offerings: - -------------------------- For: 6,716,992 Against: 17,500 Abstain: 765,508 89.6% Voted for the Amendment, .2% Voted Against the Amendment; 10.2% Abstained Attachment cc: American Stock Exchange 20