1
THE PROVIDENT BANK
COMMERCIAL BANKING
One Columbus
00 X. Xxxxx Xx.
Xxxxxxxx, Xxxx 00000
(000) 000-0000 EXHIBIT 10(dd)
December 8, 1997
Xx. Xxxxxxx X. Xxxxxxx, Xx.
Max & Xxxx's Restaurants, Inc.
0000 Xxxxxxxxx Xx.
Xxxxxxxx, XX 00000
Dear Xxxx:
This letter represents the commitment of the Provident Bank (the "Bank") to
provide the revolving credit facility described herein to Max & Xxxx's
Restaurants, Inc. (The "Borrower")
Amount: $12,000,000 revolving credit facility.
Interest rate: Unchanged from the current credit facility provided by
Bank.
Term: $600,000 quarterly reductions in the amount of the
credit facility to begin March 1, 2000, and continue
for nineteen subsequent quarters.
Security: Blanket lien on assets including restaurant equipment
and real estate subject to certain prior liens of
MetLife.
Fees &
Closing Costs: The Borrower will pay a $25,000 closing fee to the Bank
plus continue the current quarterly fee equal to 1/8%
per annum of the daily average unused portion of the
available revolving credit facility.
Compensating
balances: The Borrower agrees to maintain a $100,000 compensating
balance in its depository account maintained at Bank at
all times during the terms of this credit facility.
Loan agreement: Except for changes necessary to reflect this revised
revolving credit facility, the present loan agreement
and security documents will
2
remain essentially unchanged. Notable exceptions
include the preparation and filing of any financial
statements or mortgages necessary to update the Banks
security position in the assets to be subjected to a
lien by the Bank. Also, a new financial covenant
requiring quarterly earning before taxes to exceed
$500,000.
Further, the Bank hereby consents to and waives any defaults which may arise as
a result of the Borrower completing the sale and lease back of nine restaurants
with Franchise Finance Corporation of America on a basis materially consistent
with that outlined in the October 15, 1997 correspondence, a copy of which has
been provided to the Bank.
Sincerely yours,
/s/ Xxxxxxx X. Xxxxxxxx
Xxxxxxx X. Xxxxxxxx
Regional Vice President
MGG:lat
