Amendment and Waiver Letter to Loan Agreement between Chyron Corporation and AmSouth Bank (November 8, 2000)
This letter agreement between Chyron Corporation and AmSouth Bank amends certain terms of their March 29, 1999 Loan Agreement. The Bank agrees to modify financial covenants, including minimum quarterly EBITDA requirements and a new minimum cash balance of $3 million. The Bank also temporarily waives its rights regarding proceeds from the sale of RT-Set stock through December 31, 2000, allowing Chyron to retain those funds. Additional changes are made to permitted investments. The letter does not waive any future defaults or the Bank’s rights under the original agreement.
November 8, 2000
Dawn R. Johnston
Chief Financial Officer
Chyron Corporation
5 Hub Drive
Melville, New York 11747
Dear Ms. Johnston:
Reference is made to the Loan Agreement dated March 29, 1999, among Chyron Corporation ("Chyron") and AmSouth Bank (the "Bank"). Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Loan Agreement.
(I) The Bank has agreed to amend the provisions of Section 6.1(a) of the Loan Agreement as follows;
Period Minimum Quarterly EBITDA
Q3 2000 $119,000
Q4 2000 ($1,600,000)
Q1 2001 testing and thereafter will remain in effect per the Credit Agreement.
and add Section 6.1 (c) as follows;
Minimum Cash on the Balance Sheet .
(II) As it relates to the sale of the RT-Set stock through December 31, 2000 only, the Bank has agreed to waive their rights with regard to Section 7.2 of the Loan Agreement. Chyron is able to retain the proceeds from the sale of the stock through FYE 2000.
(III) The Bank has agreed to amend the provisions of Section 7.3 of the Loan Agreement as follows;
Section 7.3(iv) will become Section 7.3(v) and the new Section 7.3(iv) will read as follows;
(iv) investments per Schedule 1 of the Chyron Amendment & Waiver document dated November 2000;
(Chyron Corporation Cash Investment Policy)
This will confirm the Bank's consent to the terms and conditions as set forth above. Nothing in this letter shall constitute a waiver of any future Default or Event of Default under the Agreement (including any default in payment of principal resulting from restrictions on availability of Revolving Credit Loans) or a waiver of any right or remedy the Bank may have with respect to any such future Default or Event of Default.
If the foregoing is in accordance with your understanding of our agreement please so indicate by executing this letter in the space provided below and returning a copy to the Agent.
| Very truly yours, |
| AMSOUTH BANK |
| By: /s/ Barry S. Renow |
| Barry S. Renow |
| Its: Attorney-In-Fact |
| Acknowledged and Agreed: |
| CHYRON CORPORATION |
| By: Dawn Johnston |
| Dawn Johnston |
| Its: CFO |
