Waiver Letter to Surgical Laser Technologies, Inc. Regarding Loan Agreement Covenant Breaches by AmSouth Bank (February 27, 2003)

Summary

AmSouth Bank has agreed to waive certain financial covenant violations by Surgical Laser Technologies, Inc. under their Loan Agreement dated May 31, 2000. Specifically, the bank is waiving breaches related to cash flow coverage, interest coverage, and debt-to-net worth ratios for the fiscal year ending December 27, 2002, and any short period ending December 31, 2002. These waivers are retroactively effective as of December 27, 2002, and are tied to agreed amendments to the Revolving Loan Agreement.

EX-10.29 16 dex1029.txt LETTER OF WAIVER FROM AMSOUTH BANK EXHIBIT 10.29 February 27, 2003 Mr. Dennis McGrath Chief Financial Officer Surgical Laser Technologies, Inc. 147 Keystone Drive Montgomeryville, PA 18936 Re: Covenant waivers to Loan Agreement between Surgical Laser Technologies, Inc. and AmSouth Bank dated May 31, 2000 Dear Dennis: AmSouth Bank hereby consents to the following Loan Agreement waivers: 1) Waive violation of Section 7.01, which required maintaining a traditional cash flow coverage (as defined in that Loan Agreement dated May 31, 2000) of 1.25X. This waiver pertains to the fiscal year ended 12/27/02, and any stub period ending 12/31/02. 2) Waive violation of Section 7.02, which required maintaining an interest coverage (as defined in that Loan Agreement dated May 31, 2000) of 2.25X. This waiver pertains to the fiscal year ended 12/27/02, and any stub period ending 12/31/02. 3) Waive violation of Section 7.03, which required maintaining a Debt/Tangible Net Worth of not more than .60 to 1. This waiver pertains to the fiscal year ended 12/27/02, and any stub period ending 12/31/02. These aforementioned waivers shall be retroactively effective on 12/27/02. They shall become effective in conjunction with various agreed amendments to the Revolving Loan Agreement. Should you need additional documentation, please feel free to contact me at ###-###-####. Sincerely, Received and acknowledged this 27th day of February, 2003 /s/ Rhett D. Jordan Rhett D. Jordan Surgical Laser Technologies, Inc. Vice President By /s/ Dennis McGrath Its: Chief Financial Officer