THE CIT GROUP EXHIBIT 10
April 25, 1997
House of Fabrics, Inc.
00000 Xxxxxxxxx Xxxxx
Xxxxxxx Xxxx, XX 00000
Gentlemen:
Reference is made to the Financing Agreement, dated July 23, 1996, between House
of Fabrics, Inc. (the "Company") and The CIT Group/Business Credit, Inc.
("CIT/BC") as Agent and Lender, as the same may be amended from time to time
(the "Financing Agreement"). Capitalized terms not otherwise defined herein
shall have the meaning ascribed thereto in the Financing Agreement.
The Company has requested and CIT/BC, as Agent and Lender, hereby agrees to
amend the Financing Agreement as follows:
1. Effective the date of this Letter Agreement, paragraph 10 of Section 6
of the Financing Agreement is hereby amended by deleting the amount of
$7,500,000 set forth in such paragraph solely as it relates to the July
31, 1997 calculation date, and inserting in lieu thereof the amount of
$3,000,000. Effective with the October 31, 1997 and all subsequent
calculation dates, the original amount of $7,500,000 shall be
applicable.
2. In consideration of the Letter Agreement you hereby agree to pay the
Agent on behalf of the Lenders a $50,000 facility fee, due upon
execution of this Letter Agreement. You hereby authorize the Agent to
charge your Revolving Loan Account with the Agent for such facility
fee.
Except as set forth herein no other change in the terms or provisions of the
Financing Agreement is intended or implied. If the foregoing is in accordance
with your understanding of our agreement, please so indicated by signing and
returning to us the enclosed copy of this Letter Agreement. It is agreed with
respect to this Letter Amendment that signed faxed copies shall be deemed of the
same force and effect as an original manually signed
copy, provided further that the Company hereby confirms that it shall promptly
deliver original signature pages to the undersigned.
Very truly yours,
THE CIT GROUP/BUSINESS CREDIT, INC.,
(as Agent and Lender)
By: /s/ Xxxxx Xxxxx
---------------
Title: Assistant Vice President
XXXXX FARGO BANK, N.A., (As Lender)
By: /s/ Xxxxxx X. Xxxxxx
--------------------
Title: Vice President
LA SALLE BUSINESS CREDIT, INC., (As Lender)
By: /s/ Xxxxx Magkamit
------------------
Title: Assistant Vice President
FINOVA CAPITAL CORPORATION, (As Lender)
By: /s/ Xxxx Xxxxxxxx
-----------------
Title: Vice President
FREMONT FINANCIAL CORPORATION, (As Lender)
By: /s/ Xxxxx Xxxxxx
----------------
Title: Vice President
Read and Agreed to:
HOUSE OF FABRICS, INC.
By: /s/ Xxxx X. Xxxxxxx
-------------------
Title: EVP/CFO
