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EXHIBIT 10(W)
XXXXX FARGO LOGO
Commercial Banking Group
000 Xxxx Xxxxxx, Xxxxx 000
Xxxx Xxxxx, XX 00000
December 16, 1996
W. Xxxx Xxxxx
Vice President, Treasurer
Pancho's Mexican Buffet
0000 Xxxxx Xxxxxx
Xxxx Xxxxx, XX 00000-0000
Re: Revolving Credit and Term Loan Agreement ("Agreement") dated as of
February 16, 1994, as amended, by and between PMB Enterprises West, Inc.
("Borrower") and Xxxxx Fargo Bank (Texas), National Association, formerly
First Interstate Bank of Texas, N.A. ("Bank")
Dear Xxxx:
This letter will constitute an amendment to the Agreement. The changes to the
Agreement and the effective dates, thereof, are as follows:
o Commitment Level - Effective December 16, 1996, the Commitment will be
$5,000,000.
o Quarterly Commitment Reduction - Beginning with the quarter ended 12/31/96
and continuing each quarter thereafter, the commitment will reduce by
$500,000 effective December 16, 1996.
o Section 9.10 - Net Income requirement for the month required to be greater
than or equal to $0 is amended to the following: EBITDA (Operating Income
plus Depreciation and Amortization), on a rolling 3 months, calculated
monthly, must be greater than or equal to the following: October 31, 1996 -
$400,000; November 30, 1996 - ($50,000); December 31, 1996 - $100,000;
January 31, 1997 - $200,000; February 28, 1997 - $300,000; March 31, 1996 -
$600,000; April 30, 1997 - $850,000; May 31, 1997 - $1,000,000; June 30,
1997 - $1,000,000; - July 31, 1997 - $1,250,000; August 31, 1997 -
$1,100,000; September 30, 1997 - $1,100,000. The effective date is
October 31, 1996.
o Section 9.14 - Cash Capital Expenditures will be amended to be less than or
equal to $1,900,000 for the fiscal year ended September 30, 1997 and will be
less than or equal to $500,000 on a quarterly basis for the first three
quarters of fiscal 1997 ended
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12/31/96, 3/31/96, and 6/30/96. The balance remaining for Cash Capital
Expenditures may be spent in the fourth quarter provided that no Event
of Default has occurred or is occurring. The effective date is October
31, 1996.
o Section 3 of the Agreement is hereby amended as follows: "Termination
Date" shall mean (i) October 31, 1997, or (ii) such later date to which
the Revolving Credit Period is extended pursuant to Section 2.01(b) in
the Revolving Credit Agreement.
By executing this amendment, the Borrower warrants and represents that
it is not in default of any of the terms under this Agreement as amended by
this letter. The above amendments are the ONLY changes to the Agreement. The
Bank reserves all its rights and remedies under the Agreement.
Please execute the letter by signing in the "Acceptance" space
indicated on this page and return the original to me. Please make a copy for
your files.
Very Truly Yours,
/s/ Xxxxx X. Xxxxxxxxx
Xxxxx X. Xxxxxxxxx
Vice President
Accepted and Agreed upon:
By: /s/ W. Xxxx Xxxxx
Title: VP-Treasurer
Company: PMB Enterprises West, Inc.
Date: 12-16-96
