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EXHIBIT (10)(i)(g)
Material Contracts --
Amendment No. 6 to
Credit Agreement between
Xxxxxxx Gordman 1/2
Price Stores, Inc. and
Congress Financial
Corporation, dated
January 31, 1996.
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AMENDMENT NO. 6 TO
INVENTORY FINANCING AGREEMENT
AND ACCOUNTS SECURITY AGREEMENT
January 31, 1997
Xxxxxxx Gordman 1/2 Price Stores, Inc.
00000 Xxxx Xxxxxx Xxxx
Xxxxx, Xxxxxxxx 00000
Ladies and Gentlemen:
Reference is made to the Inventory Financing Agreement and Accounts
Security Agreement dated as of October 20, 1993, as previously amended and
supplemented (the "Loan Agreement") between Congress Financial Corporation
(Central) ("Congress") and Xxxxxxx Gordman 1/2 Price Stores, Inc. ("Borrower").
Terms used herein and not otherwise defined herein shall the meaning ascribed
to such terms in the Loan Agreement.
Borrower has requested that Congress agree to amend the Loan Agreement to
modify the inventory advance rate, and Congress is willing to do so subject the
terms and conditions set forth herein.
Accordingly, the Loan Agreement is hereby amended in the following
respect:
1. The first sentence of Section 2.1 of the Loan Agreement is hereby
deleted in its entirety and replaced with the following:
In the absence of an Event of Default and in the absence of an
event which with the passage of time or the giving of notice or
both would mature into an Event of Default and subject to the
terms and conditions of this Agreement as amended by any
supplements and riders hereto, you shall make loans to us from
time to time, at our request, of up to thirty-six percent (36%)
of the retail value of Eligible Inventory (reduced to twenty
percent (20%) of the retail value of all "clearance items"
constituting Eligible Inventory in an amount not to exceed Six
Million Dollars ($6,000,000) which have been on our Premises for
a period of less than eighteen (18) months); provided that at no
time shall the outstanding loans made pursuant to the provisions
of this section exceed seventy-five percent (75%) of the "Mid
Range Liquidation Value", as determined by the most
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Xxxxxxx Xxxxxxx 1/2 Price Stores, Inc.
January 31, 1997
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recently prepared Inventory Liquidation Sale Analysis of
Schottenstein Xxxxxxxxx Capital Group, LLC (the "Mid Range
Liquidation Value Amount"). In the event that at any time the
loans made pursuant to this section exceed the Mid Range
Liquidation Value Amount, as so determined, Borrower shall be
obligated to immediately repay the loans by an amount necessary
to eliminate such excess.
The amendment to the Loan Agreement described herein shall be
effective upon the delivery by Borrower to Congress of a counterpart
of this Amendment No. 6 which has been acknowledged and agreed to by
Borrower, along with (i) resolutions of the board of directors of
Borrower pertaining to the subject matter hereof, in form and
substance satisfactory to Congress, and (ii) an opinion of counsel to
Borrower, regarding the subject matter hereof, in form and substance
satisfactory to Congress and (iii) evidence of the consent of the
Official Unsecured Creditors Committee of Xxxxxxx Cordman 1/2 Price
Stores, Inc. to this Amendment No. 6.
Except as expressly set forth herein, the Loan Agreement shall
remain unmodified and in full force and effect.
Very truly yours,
CONGRESS FINANCIAL CORPORATION (CENTRAL)
By /s/ Xxxxxx Xxxxx
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Its Assistant Vice President
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ACKNOWLEDGED AND AGREED TO as of
the 31st day of January, 1997.
XXXXXXX GORDMAN 1/2 PRICE STORES, INC.
By /s/ Xxxx Xxxxxxx
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Its President, CEO
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