Exhibit 10(b)(16)
Amendment to Term Loan Agreement
THIS AMENDMENT TO TERM LOAN AGREEMENT made as of the 31st day of
January, 1996, to that Term Loan Agreement (the "Agreement") dated October 30,
1992, by and between TEXFI INDUSTRIES, INC., a Delaware corporation (herein
called "Borrower"), and THE CIT GROUP/COMMERCIAL SERVICES, INC. (formerly known
as The CIT Group/BCC, Inc., formerly known as Barclays Commercial Corporation
and hereinafter called the "Lender") is effective as of November 3, 1995. The
Agreement is hereby amended as follows:
Paragraph 7.1 of the Agreement is hereby deleted in its entirety and
the following paragraph is substituted therefor:
"7.1 Net Worth. Permit Tangible Net Worth, as of the last day of each
fiscal quarter of the Borrower, to be less than the sum of (i) $1,800,000 plus
(ii) the sum of, for each fiscal quarter of Borrower, commencing with the first
quarter of the Borrower's 1996 fiscal year: (A) 50% of all Net Income for each
fiscal quarter in which Net Income is positive and (B) zero, for each fiscal
quarter in which net Income is zero or negative, calculated for the entire
period from and after the end of the fourth quarter of the Borrower's 1995
fiscal year to the date of determination thereof."
Paragraph 7.2 of the Agreement is hereby deleted in its entirety and
the following paragraph is substituted therefor:
"7.2 Working Capital. Permit Working Capital to be less than the
following amounts for the date or period indicated (such compliance to be
calculated as of the end of each fiscal quarter of the Borrower):
Applicable date of Period Working Capital
At the end of the fourth quarter of Borrower's $12,000,000
1995 fiscal year
At the end of the first quarter of Borrower's $ 8,000,000
1996 fiscal year
At the end of the second quarter of Borrower's $ 8,000,000
1996 fiscal year
At the end of the third quarter of Borrower's $ 9,000,000
1996 fiscal year and at the end of each fiscal
quarter thereafter
At the end of the fourth quarter of Borrower's $12,000,000
1996 fiscal year and at the end of each fiscal
quarter thereafter
IN WITNESS WHEREOF, Borrower and the Lender have caused this Amendment
to Term Loan Agreement to be duly executed by their respective duly authorized
officers, all as of the day and year first above written.
ATTEST: TEXFI INDUSTRIES, INC.
Xxxxx Xxxxx Xxxxxxxxx By:
Assistant Secretary Xxxx X. Xxxxxxx
Vice President Finance and
[CORPORATE SEAL] Treasurer
ATTEST: THE CIT GROUP/COMMERCIAL
SERVICES, INC.
Xxxxxxx X. Xxxx By: Xxxxx X. Xxxxxx
Assistant Secretary Title: Vice President
[CORPORATE SEAL]
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