Covenant Waiver Letter under Loan and Security Agreement between Evans & Sutherland Computer Corporation and Foothill Capital Corporation

Contract Categories: Business Finance › Waiver Agreements
Summary

Foothill Capital Corporation has agreed to waive Evans & Sutherland Computer Corporation's default of the Tangible Net Worth requirement under their Loan and Security Agreement as of September 30, 2001. This waiver applies only to this specific instance and does not affect Foothill's rights to enforce the agreement for any future or other defaults. The waiver is communicated formally to Evans & Sutherland and their legal counsel.

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EX-10.3 2 exhibit10-3.txt FOOTHILL COVENANT WAIVER VIA FACSIMILE ###-###-#### Evans & Sutherland Computer Corporation 600 Komas Drive Salt Lake City, Utah 84108 Attn: Vice President/Treasurer Re: Loan and Security Agreement by and between Evans and Sutherland Computer Corporation and Foothill Capital Corporation, dated as of December 14, 2000 ("Loan Agreement") Ladies and Gentlemen: Reference is made with respect to the default of the following provision of the above-referenced Loan Agreement: Section 6.17. Borrower has failed to maintain the Tangible Net Worth on September 30, 2001 as called for therein. Foothill hereby waives the default for the September 30, 2001 test, but reserves any and all rights to strictly enforce rights and remedies with respect to any subsequent financial covenant default, or any other item of default which may occur. Very truly yours, FOOTHILL CAPITAL CORPORATION By /s/ Charles Kim ----------------------------------- Charles Kim cc: Brian Cunningham, Esq., Snell & Wilmer, 15 West South Temple, Suite 1200, Salt Lake City, Utah 84101 (via fax ###-###-####)