Xxxxxx X. Xxxxxxx
Vice President
Managed Assets Division
[LOGO FLEET]
Mail Stop: CT EH 40221B
000 Xxxx Xxxxxx
XxxxxXxxxxx Xxxxxxxxx Xxxxxxxx, XX 00000
860 986.3788 tel
860 986.3162 fax
xxxxxx_x_xxxxxxx@xxxxx.xxx
November 7, 2001
Xx. Xxxxxx Xxxxxxx
Chief Financial Officer
Xxxxxxxx Commercial Corporation
00000 Xxxx Xxxx
Xxxxxxxx, XX 00000
Re: Credit Agreement dated May 1, 1998, as amended.
Dear Xx. Xxxxxxx,
Fleet Bank, as Administrative Agent, is pleased to advise you that the Lenders
will further amend the subject Credit Facility under the following terms and
conditions.
. The revolver will be capped at the current outstanding of $23,154,828.82
. Covenant defaults through the period ending September 30, 2001 will be
waived.
. The Borrower shall obtain and have in effect a fully executed commitment
from a lender or lenders to refinance and repay in full the entire
indebtedness by June 30, 2002.
. A $1,000,000 principal payment will be made upon execution of the
amendment.
. A $100,000 amendment fee will be paid upon execution of the amendment.
. A Federal Income Tax refund from the tax return to be filed in February
2002 will be applied as a principal reduction of the debt. The payment will
be no less than $3,500,000 and be payable by March 31, 2002.
. The Borrower will grant to the lenders a mortgage on the real estate
located at 00000 Xxxx Xxxx, Xxxxxxxx, XX. The lenders will release the
mortgage upon sale of the property and payment to the lenders of the net
proceeds of the sale after the first mortgage balance and closing costs.
. The Borrower will grant to the lenders a negative pledge on real estate
located on Xxxxxx Road, Leesons Hill, Orpington, Kent, United Kingdom.
. Financial covenants for the fiscal quarters ending December 31, 2001 and
March 31, 2002 will be reset upon receipt and review of the Borrower's
financial statements for the period ending September 30, 2001.
. Reaffirmation of all existing covenants and agreements between the Borrower
and Lenders.
. The Borrower will execute and deliver such documents and do such other acts
and things as the Lenders may request in order to fully effect the purposes
of the agreement.
. The Borrower will pay all out-of-pocket costs and expenses incurred by the
Lenders in connection with the proposed amendments and financing
arrangements.
This commitment will automatically terminate if not agreed to and accepted by
the Borrower no later than November 19, 2001 and a closing held not later than
December 7, 2001.
Please indicate your acceptance of the above terms and conditions by signing the
enclosed copy of this letter and returning it to me at the captioned address.
Very truly yours,
/s/ Xxxxxx X. Xxxxxxx
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Xxxxxx X. Xxxxxxx
Vice President
Xxxxxx and accepted this 7 day of November, 2001.
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Xxxxxx Xxxxxxx CFO /s/ Xxxxxx Xxxxxxx
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Name Title Signature
