WAIVER OF REPORTING, FINANCIAL COVENANT AND OTHER DEFAULTS. The Company acknowledges that (a) as of October 31, 1998, the Company did not comply with the reporting and financial covenants ("REPORTING DEFAULTS" and "FINANCIAL COVENANT DEFAULTS," respectively) set forth in Paragraphs 5A, 6A(1) and 6A(2), respectively, of the Note Agreement and (b) as previously disclosed to Prudential in writing, on the date hereof, the Company and certain Guarantors are in default of payment in the approximate aggregate amount of $1,223,294, under capitalized leases ("LEASE DEFAULTS"), which capital leases are in the approximate aggregate principal amount of $14,582,251. As a result, as of November 30, 1998 and the date hereof, Events of Default (as defined in the Note Agreement) existed and continue to exist under the Note Agreement. Pursuant to this Section 1, Prudential waives all Financial Covenant Defaults, Reporting Defaults and Events of Default extant on November 30, 1998 and previously disclosed to Prudential in writing. In addition, Prudential waives all Lease Defaults extant as of the date hereof and previously disclosed to Prudential in writing. Prudential's waiver of Lease Defaults is subject to the condition subsequent that all Lease Defaults are cured by 5:00 p.m. central standard time on January 15, 1999. The Company must submit to Prudential by 5:00 p.m. central standard time on January 15, 1999 evidence of such cure, which evidence must be acceptable to Prudential in its sole discretion ("CURE EVIDENCE"). In the absence of Prudential's receipt of Cure Evidence, an Event of Default will exist. This waiver is with respect to the foregoing defaults only, and does not create any obligation on Prudential's part to grant any similar waivers or extensions under similar or dissimilar circumstances. Without limiting the foregoing, any Events of Default arising after November 30, 1998 (other than those described in the immediately preceding paragraph) are not waived by this Section 1. This waiver shall become effective only upon the Company's and Guarantors' execution of this Agreement. It is understood and agreed that, except as set forth in this Section 1, Prudential waives no rights --------- whatsoever with respect to remedies available to it with respect to the Note ---------- Agreement and the other Note Documents.
WAIVER OF REPORTING, FINANCIAL COVENANT AND OTHER DEFAULTS. Borrower and Guarantors acknowledge that (a) as of October 31, 1998, Borrower did not comply with the financial and reporting covenants ("Financial Covenant Default" and "Reporting Default," respectively) set forth in Sections 11, 12 and 13, respectively, of the Prior Agreement and (b) as previously disclosed to Bank in writing, on the date hereof, Borrower and Guarantors are in default of payment in the approximate aggregate principal amount of $1,223,294, under capitalized leases ("Lease Defaults"), which capital leases are in the approximate aggregate principal amount of $14,582,251. As a result, as of November 30, 1998 and the date hereof, Events of Default (as defined in the Prior Agreement) existed and continue to exist under the Prior Agreement.
