Amendment to Second Restated and Amended Financing Agreement between GMAC Commercial Credit LLC and Bernard Chaus, Inc.

Summary

This amendment, dated September 22, 2000, modifies the existing financing agreement between GMAC Commercial Credit LLC and Bernard Chaus, Inc., with Chaus Retail, Inc. as guarantor. The amendment updates certain financial covenants, including minimum Tangible Net Worth, minimum Working Capital, and limits on losses and required profits for specified dates through June 30, 2001. All other terms of the original agreement remain unchanged. The amendment is effective upon mutual agreement and signature by the parties.

EX-10.85 3 0003.txt AMENDMENT TO THE SECOND RESTATED AND AMENDED FINANCING AGREEMENT GMAC COMMERCIAL CREDIT LLC September 22, 2000 Bernard Chaus, Inc. 1410 Broadway New York, New York, 10018 Attention: Josephine Chaus, Chairwoman of the Board Bernard Chaus, Inc. 800 Secaucus Road Secaucus, New Jersey, 07094 Attention: Bart Heminover, Chief Financial Officer Ladies/Gentlemen: Reference is made to the Second Restated and Amended Financing Agreement between us dated as of October 10, 1997, as supplemented and amended (the "Financing Agreement"). Initially capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Financing Agreement. It is hereby agreed that, effective as of September 22, 2000, the Financing Agreement shall be amended as follows: 1. Section 9.1(d) is restated with respect to the covenant requirement applicable as of June 30, 2000 and amended to provide that the Borrower will not permit its Tangible Net Worth to be less than the following amounts as of the following dates: "As of June 30, 2000 $17,000,000 As of September 30, 2000 $15,000,000 As of December 31, 2000 $14,000,000 As of March 31, 2001 $14,000,000 As of June 30, 2001 $14,000,000" 2. Section 9.1(e) is restated with respect to the covenant requirement applicable as of June 30, 2000 and amended to provide that the Borrower will not permit its Working Capital to be less than the following amounts on the following dates: "As of June 30, 2000 $17,000,000 As of September 30, 2000 $19,000,000 As of December 31, 2000 $17,000,000 As of March 31, 2001 $17,000,000 As of June 30, 2001 $17,000,000" 3. Section 9.1(g) is restated with respect to the covenant requirements applicable to the fiscal quarter and fiscal year ended June 30, 2000 and amended to provide that the Borrower's (i) 1290 AVENUE OF THE AMERICAS o NEW YORK, NY 10104 o ###-###-#### Loss (after taxes) will not exceed and (ii) Profit (after taxes) will not be less than the amounts specified below as applicable to the indicated Period under the applicable column: Maximum Minimum "Period Permitted Loss Permitted Profit - ------- -------------- ---------------- Fiscal quarter ended June 30, 2000 $5,300,000 Fiscal year ended June 30, 2000 $50,000 Fiscal quarter ended September 30, 2000 $2,000,000 Fiscal quarter ended December 31, 2000 $2,000,000 Fiscal quarter ended March 31, 2001 $200,000 Fiscal quarter ended June 30, 2001 -0- Fiscal year ended June 30, 2001 $3,500,000" Except as hereinabove specifically set forth, the Financing Agreement shall remain unmodified and in full force and effect in accordance with its terms. If you are in agreement with the foregoing, please so indicate by signing and returning to us the enclosed copy of this letter. Very truly yours, GMAC COMMERCIAL CREDIT LLC By: /s/ John H. McGowen ----------------------------------- Title: Vice President AGREED AND ACCEPTED: BERNARD CHAUS, INC By: /s/ Barton Heminover --------------------------------- Title: Vice President of Finance GUARANTOR: CHAUS RETAIL, INC. By: /s/ Barton Heminover --------------------------------- Title: Vice President of Finance 2