NationsBank
Commercial Lending
P.O. Box 448
Columbia, SC 29202-0448
NationsBank
October 25, 1996
Xx. Xxxx X. Xxxxxx
Chief Financial Officer
Xxxxxx Color-Fi, Inc.
Star Fibers Corp.
Custom Colorants, Inc.
Xxxxxxxx Industries, Inc.
Palmetto Spinning Corporation
P.O. Box 469
Edgefield, SC 29824
Re: Modification of Terms of Credit Facilities Extended by
NationsBank, N.A.
Dear Xxxx:
This letter shall serve as a written modification to that certain
Amended and Restated Loan and Security Agreement dated to be effective as of
August 9, 1995 (as amended or modified the "Loan Agreement") by and between
Xxxxxx Color-Fi, Inc., Star Fibers Corp., Custom Colorants, Inc., Xxxxxxxx
Industries, Inc. and Palmetto Spinning Corporation (collectively, the
"Borrowers") and NationsBank, N.A. formerly known as NationsBank, National
Association (Carolinas) ("NationsBank").
The Loan Agreement is amended by deleting Section 7.2(h) in its
entirety and substantially in lieu thereof the following:
(h) Make capital expenditures in the aggregate in excess of (i)
$6,500,000 during Borrowers' fiscal year ending on December 31,
1996; and (ii) $5,000,000 during any fiscal year after December
31, 1996.
All capitalized terms not otherwise defined in this letter shall have
the meaning ascribed to such term in the Loan Agreement. All other terms and
conditions of the Loan Agreement and any other document executed in connection
with the Loans (collectively, the "Loan Documents") shall remain in full force
and effect. Borrowers represent and warrant that, as of the date of this letter,
(i) all representations contained in the Loan Agreement or the Loan Documents
are true and accurate (ii) all covenants contained in the Loan Agreement and the
Loan Documents have been and remain satisfied and (iii) no Event of Default
exists or no condition exists which with the giving of notice for the passage of
time would constitute an Event of Default under Loan Agreement or the Loan
Documents.
Xx. Xxxx X. Xxxxxx
October 25, 1996
Page 2
Please have all parties execute the original of this letter to agree
that the Borrowers will be bound by the terms and conditions of this letter and
return the original fully-executed letter to me as soon as possible. This letter
agreement will be effective as of the date of Borrowers' acceptance of this
letter and will be binding on all parties upon our receipt of the original,
fully-executed and dated letter.
Kindest regards,
NationsBank, N.A.
Xxxx X. "Mze" Xxxxxxx
Senior Vice President
Agreed to on this 28 day of October, 1996.
BORROWERS: XXXXXXXX INDUSTRIES, INC.
XXXXXX COLOR-FI, INC. By: Xxxx X. Xxxxxx
Its: Chief Financial Officer
By: Xxxx X. Xxxxxx PALMETTO SPINNING CORPORATION
Its: Chief Financial Officer
STAR FIBERS CORP. By: Xxxx X. Xxxxxx
Its: Chief Financial Officer
By: Xxxx X. Xxxxxx
Its: Chief Financial Officer
CUSTOM COLORANTS, INC.
By: Xxxx X. Xxxxxx
Its: Chief Financial Officer
