Waiver and Extension Letter to Vermont Pure Holdings, LTD from Webster Bank (September 13, 2002)

Summary

Webster Bank agrees to a one-time waiver of Vermont Pure Holdings, LTD's violation of the Debt Service Covenant for the period ending July 31, 2002, under their existing Commercial Loan and Security Agreement. Additionally, the bank extends the company's $5,000,000 working capital line of credit for 120 days beyond its original expiration date of October 5, 2002. This letter is acknowledged by both parties and outlines temporary relief and extension terms for the borrower.

EX-10.28 4 exhibit1028.txt COMMERCIAL LOAN AND SECURITY AGREEMENT September 13, 2002 Mr. Bruce MacDonald, CFO Vermont Pure Holdings, LTD Route 66 Catamount Industrial Park Randolph, VT 05060 Re: Commercial Loan and Security Agreement Dated October 5, 2000 Dear Bruce: Reference is made to Section 1.1 (jjj) of the above-referenced Commercial Loan and Security Agreement. As of this date you, as CFO of the Borrower, have advised Webster Bank that you would be in violation of the Debt Service Covenant for the period ended 7/31/02 as set forth in Section 6.17 and defined in Section 1.1 (n) of the above referenced Agreement. Webster Bank hereby consents to a one time waiver of this covenant. In addition, Vermont Pure Holdings, LTD $5,000,000 working capital line of credit will expire on 10/5/02. The bank has approved a 120 day extension of this facility. Sincerely, WEBSTER BANK By:/s/ Carol Carver ----------------------------------------- It's Vice President Acknowledged on this 13th day of September, 2002. Vermont Pure Holdings, LTD By:/s/ Bruce S. MacDoanld --------------------------------- It's Chief Financial Officer