Waiver of Current Ratio Covenant under Loan Agreements between BB&T and Embrex, Inc.
Branch Banking and Trust Company (BB&T) agrees to temporarily waive the requirement for Embrex, Inc. to maintain a minimum current ratio, as specified in their loan agreements, for the third quarter ending September 30, 2006, and for the period from October 1, 2006, to December 31, 2006. After December 31, 2006, the current ratio covenant will be reinstated and enforced according to the original loan terms.
Exhibit 10.8
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| BB&T |
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| Branch Banking & Trust Co. |
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| 505 S. Duke Street |
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| Durham, NC 27701 |
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| (919) 887-7800 |
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| November 2, 2006 |
| Mr. Don T. Seaquist |
| Vice President, Finance & Administration |
| Embrex, Inc. |
| 1040 Swabia Road |
| Durham, NC 27703 |
Re: Current Ratio covenant
Dear Mr. Seaquist:
With regard to the Current Ratio covenant (i.e., a ratio of total current assets to total current liabilities of not less than 2.0 to 1.0) as specified in the Loan Agreements dated April 7, 1999, (and al1 subsequent addendums) and August 6, 2003, each of which was executed by and between Branch Banking and Trust Company (''Bank") and Embrex, Inc. ("Borrower"), the Bank hereby waives the Current Ratio covenant requirement for the third quarter ending September 30, 2006. Additionally, the Current Ratio covenant will be waived beginning October 1, 2006, until the last day of the current quarter (i.e., December 31, 2006). On December 31, 2006, the Current Ratio covenant will then be enforceable per the terms and conditions of the aforementioned Loan Agreements.
Any questions regarding this matter may be directed to me at 919 ###-###-####. Thank you.
Sincerely,
| /s/ Earl W. Tye |
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| Earl W. Tye |
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| Senior Vice President |
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| City Executive |
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| Durham |
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