May 8, 1998
Xx. Xxxx X. Xxxxxx
Chief Financial Officer
Xxxxxx Color-Fi, Inc.
Star Fibers Corp.
Xxxxxxxx Industries, Inc.
X.X. Xxx 000
Xxxxxxxxx, XX 00000
Dear Xxxx:
Re: Waiver of Violations of Covenants in the Fourth Amended and
Restated Loan and Security Agreement, as amended (as amended or
modified, the "Loan Agreement") dated as of September 30, 1997 by
and between NationsBank, N.A. ("Bank") and Xxxxxx Color-Fi, Inc.,
Star Fibers Corp. and Xxxxxxxx Industries, Inc. (collectively,
"Borrowers")
Dear Xxxx:
This letter is to confirm to Borrowers that Bank agrees to waive on a
one-time basis a violation of Section 7.1(o) of the Loan Agreement which
occurred by virtue of Borrowers' failure to meet the required Leverage Ratio at
March 29, 1998.
Please be advised that this waiver is expressly limited to the
violations outlined in this letter. NationsBank is under no obligation to grant
any additional waiver or waivers related to (1) any future violation of this
covenant, or (2) any other violation of any covenant contained in any of the
Loan Documents.
All capitalized terms not otherwise defined herein shall have the
meaning ascribed to such terms in the Loan Agreement.
Should you have any further questions or comments, please do not
hesitate to call me at (000) 000-0000.
Kindest Regards,
NATIONSBANK, N.A.
Xxxx X. Xxxxxxxx
Senior Vice President
