April 24, 2009 American Consumers, Inc. Rossville, GA 30741 Gentlemen:
EXHIBIT 10.60
April 24,
2009
American
Consumers, Inc.
00 Xxxxxx
Xxx
Xxxxxxxxx,
XX 00000
Gentlemen:
This
letter agreement amends and clarifies certain terms in that certain Promissory
Note, dated as of April 20, 2009, and the related Business Loan Agreement, dated
as of April 25, 2008, concerning a revolving line of credit in the maximum
amount of $800,000.00 being provided by Gateway Bank & Trust (the “Lender”)
to American Consumers, Inc. doing business as Shop Rite (the
“Borrower”).
Each of
the above-referenced documents is hereby modified as follows:
|
1.
|
The
subparagraph entitled “Indebtedness and Liens” under the main heading
“NEGATIVE COVENANTS” on page 3 of the Business Loan Agreement is hereby
modified to read as follows:
|
Indebtedness and
Liens. (1) Except for trade debt incurred in the normal course
of business, indebtedness to Lender contemplated by this Agreement and
additional indebtedness incurred to third parties in an aggregate amount not to
exceed $50,000, create, incur or assume indebtedness for borrowed money,
including capital leases, (2) sell, transfer, mortgage, assign, pledge, lease,
grant a security interest in, or encumber any of Borrower's assets (except as
allowed as Permitted Liens), or (3) sell with recourse any of Borrower's
accounts, except to Lender.
|
2.
|
The
subparagraph entitled “Other Defaults” under the main heading “DEFAULT” on
page 1 of the Promissory Note is hereby modified to read as
follows:
|
Other
Defaults. Borrower fails to comply with or to perform
any other term, obligation, covenant or condition contained in this Note or in
any of the related documents or to comply with or to perform any term,
obligation, covenant or condition contained in any other agreement between
Lender and Borrower; provided, however, that this paragraph shall only apply to
any such failure to comply or perform that would materially, adversely affect
Borrower’s financial condition or properties.
|
3.
|
The
subparagraph entitled “Adverse Change” under the main heading “DEFAULT” on
page 1 of the Promissory Note is hereby modified to read as
follows:
|
Adverse
Change. A material adverse change occurs in Borrower’s
financial condition.
By
execution of this Letter Agreement below, each of the parties hereby agrees to
and accepts the modifications to the terms of the above-referenced Business Loan
Agreement and the related Promissory Note set forth herein, as of this 24th day of April,
2009.
| Gateway Bank & Trust | American Consumers, Inc. | |||
|
/s/
Xxxxx Xxxxxx
|
/s/
Xxxx X. Xxxx
|
|||
|
Xxxxx
Xxxxxx
|
Xxxx
X. Xxxx
|
|||
|
Xx.
Vice President
|
Chief
Financial Officer
|
