Waiver Agreement between Geerlings & Wade, Inc. and Lenders Dated July 30, 2003

Contract Categories: Business Finance › Waiver Agreements
Summary

Geerlings & Wade, Inc. and its lenders have agreed to temporarily waive certain financial requirements in their existing credit agreement. The lenders are waiving the company's failure to meet specific financial covenants for June 2003 and are also excusing compliance with these covenants for July, August, and September 2003. This waiver is limited to the specified terms and does not affect any other provisions or future rights under the credit agreement.

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EX-10.1 3 dex101.htm WAIVER DATED JULY 30, 2003 WAIVER DATED JULY 30, 2003

Exhibit 10.1

 

 

July 30, 2003

 

Geerlings & Wade, Inc.

960 Turnpike Street

Canton, MA 02021

 

Gentlemen:

 

Reference is made to that certain Credit Agreement dated as of February 24, 2003 among Geerlings & Wade, Inc. (the “Company”) and John M. Connors, Jr., James C. Curvey, John J. Remondi, Gordon Romer and Robert L. Webb as Lenders (as amended, restated, supplemented and otherwise modified from time to time, the “Credit Agreement”). Capitalized terms used herein but without definition shall have the meanings ascribed to such terms in the Credit Agreement.

 

The Company has advised the Lenders that an Event of Default is in existence under Section 8.1.2 of the Credit Agreement as a result of the Company’s breach of each of the Current Ratio covenant contained in Section 6.6 of the Credit Agreement, the Quick Ratio covenant contained in Section 6.7 of the Credit Agreement and the EBIT covenant contained in Section 6.8 of the Credit Agreement for the month of June 2003 (the “Existing Event of Default”).

 

The Company has requested that (i) the Lenders waive the Existing Event of Default and (ii) the Lenders waive the requirement that the Company comply with the Current Ratio covenant contained in Section 6.6 of the Credit Agreement, the Quick Ratio covenant contained in Section 6.7 of the Credit Agreement and the EBIT covenant contained in Section 6.8 of the Credit Agreement for each of the months of July, August, and September 2003.

 

The undersigned Lenders hereby (i) waive the Existing Event of Default caused by the Company’s failure to comply with Sections 6.6, 6.7 and 6.8 of the Credit Agreement for the month of June 2003 and (ii) waive the requirement that the Company comply with Sections 6.6, 6.7 and 6.8 of the Credit Agreement for each of the months of July, August, and September 2003.

 

Except to the extent specifically described herein, this letter shall not constitute a waiver by the Lenders of any provisions of the Credit Agreement or any of the other Credit Documents, and the waivers contained herein shall not be construed as a waiver of any right or remedy on any future occasion.

 

Sincerely,

 

 

/s/ John M. Connors, Jr.

John M. Connors, Jr.

 

 

/s/ James C. Curvey

James C. Curvey

 

 

/s/ John J. Remondi

John J. Remondi

 

 

/s/ Gordon Romer

Gordon Romer

 

 

/s/ Robert L. Webb

Robert L. Webb

 

Acknowledged and Agreed:

 

 

GEERLINGS & WADE, INC.

 

 

By:  /s/ Huib E. Geerlings

Name: Huib E. Geerlings

Title: Chief Executive Officer

 

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