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Exhibit 10(c)(iv)
LETTER AGREEMENT
December 23, 1996
Crown Crafts, Inc.
0000 XxxxxXxxx Xxxxxxx
Xxxxx 000
Xxxxxxx, Xxxxxxx 00000
Attn: Xx. Xxxxxx Xxxxxxxx, Treasurer
Reference is made to the Revolving Credit Agreement ("Credit Agreement") dated
as of August 25, 1995 as amended by that certain amendment dated May 1, 1996
and that certain amendment dated June 28, 1996 between Crown Crafts, Inc.
("Crown Crafts") and NationsBank, N.A. ("NationsBank"), formerly NationsBank,
National Association (Carolinas).
You have notified NationsBank, as was reported in the Company press release
dated 11/21/96, that Crown Crafts will incur a pre-tax charge of approximately
$1.9 million to $2.5 million because of the recall of furniture made by the
Company's subsidiary, Xxxx Xxxxxxxx Furniture, Inc.
NationsBank hereby agrees to exclude the aforementioned charge for the third
fiscal quarter and any subsequent fiscal quarter through, but not beyond, the
1998 third fiscal quarter to the extent such charge is not taken during the
1997 third fiscal quarter; PROVIDED HOWEVER, that the aforementioned charge
shall not exceed $3.0 million on a cumulative basis. In addition, the
aforementioned charge will be excluded only for purposes of making the covenant
calculations for the periods referenced above, as required under Sections 7.2
and 7.4 of the Credit Agreement. With respect to Section 7.4 of the Credit
Agreement, exclusion of this charge will be made only to the extent it affects
the resultant calculation of Consolidated Cash Flow in the quarter thereof. The
exclusion of this charge shall also apply to any calculation based on any
rolling four quarter period, which includes the 1997 third fiscal quarter under
Sections 7.2 or 7.4, to the extent applicable. This Letter Agreement shall not
in any way be deemed a waiver or amendment of, or establish a course of dealing
in connection with, the Credit Agreement.
Except as expressly set forth herein, this letter shall not by implication or
otherwise limit, impair, constitute a waiver of, or otherwise affect the rights
and remedies of NationsBank under the Credit Agreement or any related document
or agreement. Except as expressly set forth herein, all of the terms,
conditions, obligations, covenants or agreements contained in the Credit
Agreement and any related document are ratified and affirmed in all respects
and shall continue in full force and effect.
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CROWN CRAFTS, INC.
DECEMBER 23, 1996
PAGE 2
Please indicate your agreement and acceptance by signing a copy of this letter
below and returning it to us.
Sincerely,
BY:/S/XXXXX X. XXXXXXX
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Xxxxx X. Xxxxxxx
Vice President
Agreed and Accepted by: Crown Crafts, Inc.
BY:/S/XXXXXX X. XXXXXXXX
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Xxxxxx X. Xxxxxxxx
Chief Accounting Officer, Treasurer
