EXHIBIT 10.1
September 6, 1996
House of Fabrics, Inc.
00000 Xxxxxxxxx Xxxxx
Xxxxxxx Xxxx, XX 00000
Gentlemen:
Reference is made to the Financing Agreement dated as of July 31, 1996 (as
amended, modified, supplemented and in effect from time to time, the "Financing
Agreement"), among you, the Lenders named therein, and The CIT Group/Business
Credit, Inc., as Agent (the "Agent"). Capitalized terms used herein and not
otherwise defined shall have the meanings assigned to such terms in the
Financing Agreement.
Pursuant to mutual understanding and effective upon the fulfillment of the
Condition Precedent (as defined below), the Financing Agreement is hereby
amended by amending the definition of "Line of Credit" as set forth in Section 1
of the Agreement to read in its entirety as follows:
"LINE OF CREDIT shall mean the commitment of the Lenders acting through the
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Agent to make loans and advances and issue Letter of Credit Guaranties, all
pursuant to and in accordance with, but subject to, Section 3 and 4 of this
Financing Agreement, in the aggregate amount of $65,000,000 or such lesser
amount as the Company may elect in accordance with Section 7 of this
Financing Agreement."
The effectiveness of the above amendment shall be, and hereby is, subject to the
fulfillment to the Agent's satisfaction of the following Condition Precedent:
the execution and delivery to the Agent of a modification (in form and substance
satisfactory to the Agent) to the mortgage granted or to be granted by you to
the Agent for the ratable benefit of the Lenders upon your Real Estate which
reflects the revised Line of Credit and any other documentation reasonably
requested by the Agent in connection therewith.
Except to the extent set forth herein, no other waiver of, or change in any of
the terms, provisions or conditions of the Financing Agreement is hereby
intended or implied. If the foregoing is in accordance with your understanding
of the agreement among you, the Lenders, and the Agent, kindly so indicate by
signing and returning the enclosed copy of this letter.
This agreement may be executed in multiple counterparts and each shall be deemed
an original but, when taken together, shall constitute one document. It is
hereby understood and agreed that a signed faxed document shall be deemed to be
of the same force and effect as an original of a manually signed copy.
Very truly yours,
THE CIT GROUP/BUSINESS CREDIT, INC.
(as Agent and Lender)
By: /s/ Xxxxx Xxxxx
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Title: Assistant Vice President
XXXXX FARGO BANK, N.A.
By: /s/ Xxxxx X. Xxxxxxx
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Title: Vice President
LA SALLE BUSINESS CREDIT, INC.
By: /s/ Xxxxx Magkamit
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Title: Assistant Vice President
FINOVA CAPITAL CORPORATION
By: /s/ Xxxxxx Xxxxxx
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Title: Vice President
FREMONT FINANCIAL CORPORATION
By: /s/ Xxxxx Xxxxxx
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Title: Assistant Vice President
Read and Agreed to:
HOUSE OF FABRICS, INC.
By: /s/ Xxxx X. Xxxxxxx
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Title: EVP-Chief Financial Officer
