AMENDMENT TO CREDIT AGREEMENT
THIS AMENDMENT TO CREDIT AGREEMENT, made this 31st day of July, 1997, by and
between THE SOURCE COMPANY (the "Borrower") and WACHOVIA BANK, N.A. (the
"Bank");
WITNESSETH:
WHEREAS, the Borrower and the Bank entered into a Credit Agreement dated the
Fourteenth day of November, 1996; and
WHEREAS, the Borrower and the Bank now mutually desire to effect certain
amendments to the Credit Agreement;
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein
and in the Credit Agreement contained, the parties agree as follows:
I. Section 6.03 contained on Page 29 of the Credit Agreement is hereby amended
and restated to read as follows:
Ratio of EBILT to Interest Expense and Lease Obligations. From the
Fiscal Quarter beginning February 1, 1997 through October 31, 1997, the
ratio of EBILT for the Fiscal Quarter then ending and the immediately
preceding three Fiscal Quarters to the sum of (I) Interest Expense and
(ii) Lease Obligations, actually paid during such Fiscal Quarters, will
not be less than 1.15 to 1.00; and as of the end of each Fiscal Quarter
thereafter, the ratio of EBILT for the Fiscal Quarter then ending and
the immediately preceding three Fiscal Quarters to the sum of (I)
Interest Expense and (ii) Lease Obligations, actually paid during such
Fiscal Quarters, will not be less than 2.50 to 1.00.
II. Section 6.04 contained on Page 29 of the Credit Agreement is hereby amended
and restated to read as follows:
Ratio of Funded Debt to EBITDA. As of October 31, 1997, the ratio of
Funded Debt for the Fiscal Quarter then ending to EBITDA for such
Fiscal Quarter and for the immediately preceding three Fiscal Quarters
will not be more than 5.25 to 1.00; and as of January 31, 1998 and as
of the end of each Fiscal Quarter thereafter, the ratio of Funded Debt
for the Fiscal Quarter then ending to EBITDA for such Fiscal Quarter
and for the immediately preceding three Fiscal Quarters will not be
more than 4.00 to 1.00.
III. Section 6.05 contained on Page 29 of the Credit Agreement is hereby amended
and restated to read as follows:
Ratio of Funded Debt to Total Capitalization. From the Closing Date
through the Fiscal Quarter ending October 31, 1997 the ratio of Funded
Debt to Total Capitalization shall not exceed 80.0%; from November 1,
1997 through January 31, 1998, the ratio of
The Source Company
Amendment to Credit Agreement
July 31, 1997
Page 2
Funded Debt to Total Capitalization shall not exceed 60.0%; from
February 1, 1998 through July 31, 1998, the ratio of Funded Debt to
Total Capitalization shall not exceed 55.0%; and from and after August
1, 1998, the ratio of Funded Debt to Total Capitalization shall not
exceed 50.0%.
Except as herein amended, the terms and provisions of the Credit Agreement shall
be and remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to the Credit
Agreement to be executed as of the year and the day first written.
CONSENTED TO AND AGREED:
THE SOURCE COMPANY
By: /s/ S. Xxxxxx Xxxxxx
Chairman and Chief Executive Officer
ATTEST:
[CORPORATE SEAL] By: /s/ W. Xxxxx Xxxxxxx
Assistant Secretary
WACHOVIA BANK, N.A.
By: /s/ Xxxx X. Xxxxxxxx
Vice President
