Amendment to Credit Agreement between Channell Commercial Corporation and Fleet Bank (November 7, 2001)

Summary

Channell Commercial Corporation and Fleet Bank have agreed to amend their existing credit agreement. The amendment caps the revolving credit at $23,154,828.82, waives certain covenant defaults, and requires Channell to secure refinancing by June 30, 2002. Channell must make a $1 million principal payment and pay a $100,000 amendment fee upon signing. Additional payments, including a tax refund and proceeds from property sales, will reduce the debt. The agreement also grants new mortgage and negative pledge rights to the lenders and reaffirms all prior covenants. The amendment must be accepted by November 19, 2001.

EX-10.24 3 dex1024.txt AGMT DTD 11/7/2001, BETWEEN COMPANY & FLEET BANK George E. Durstin Vice President Managed Assets Division [LOGO FLEET] Mail Stop: CT EH 40221B 777 Main Street FleetBoston Financial Hartford, CT 06115 ###-###-#### tel ###-###-#### fax ***@*** November 7, 2001 Mr. Thomas Liguori Chief Financial Officer Channell Commercial Corporation 26040 Ynez Road Temecula, CA 92591 Re: Credit Agreement dated May 1, 1998, as amended. Dear Mr. Ligouri, 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 26090 Ynez Road, Temecula, CA. 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 Murray 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/ George E. Durstin - ---------------------- George E. Durstin Vice President Agreed and accepted this 7 day of November, 2001. ----- Thomas Liguori CFO /s/ Thomas Liguori - ---------------- ------- -------------------- Name Title Signature